LTC 073-2009 Minimum Contractor Qualifications CIPOC Sub-Committee Meeting Reportm- MIAMIBEACH
OFFICE OF THE CITY MANAGER
LTC # ors-zoo9 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, Ciry Manager ~~},~_
DATE: March 17, 2009 Jl\
SUBJECT: Minimum Contractor Qualifications CIPOCSUb-Committee Meeting Report
The purpose of this LTC is to transmit the CIP Oversight (CIPOC) Sub-Committee's meeting
minutes on Minimum Contractor Qualifications for your review and consideration. To date the full
CIPOC Committee has not reviewed and considered the attached item.
Should you have any questions, or need additional information, please don't hesitate to contact
me.
Attachment:
1. CIPOC Sub-Committee Minutes on Minimum Contractor Qualifications of March 12,
2009.
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Minutes of CIPOC Sub-Committee
On Minimum Contractor Qualifications
March 12, 2009
The Minimum Qualifications Sub-Committee was created at the March 2, 2009 CIP Oversight
Committee (CIPOC) meeting, with Ms. Christina Cuervo serving as Chair, to review existing
practices, and make recommendations with respect to the establishment of consistent
categories related to minimum contractor qualifications and requirements associated with
Invitations to Bid (ITB).
The Sub-Committee's first and only meeting was held on March 12, 2009 and included the
following attendees: CIPOC -Christina Cuervo, Fred Karlton, Rick Kendle, Stacy Kilroy, Dwight
Kraai; Staff -Jorge Cano, Shari Lipner, Gus Lopez, & Emanuel Mayer; Public -Steven Ferceiro
(QPR Concepts), Carlos Gimenez (Becker & Poliakoff, P.A.) & Mike Metcalfe (KM -Plaza
Construction Services). Mr. Ferreiro and Mr. Gimenez were representing Link Construction
Group. Both KM -Plaza and Link Construction Group submitted bid proposals in response to
the initial Normandy Shores Goff Club House ITB. Link was disqualrfied because it failed to
meet the 10-year minimum experience requirement for the firm.
Staff presented a handout (see attachment) that was used as a basis of discussion to illustrate
the various factors typically considered by the project team -such as project complexity,
experience of the firm and the firm's qualifier (license holder) - in setting qual'rfication
requirements on a project by project basis. A project's overall complexity can be impacted by
technical /design considerations; the construction working environment and restrictions;
community and neighborhood interface issues; and other considerations. Staff noted that as a
result of recent discussion, it was determined to also include a minimum requirement of five
years experience for a firm's qualifier in addition to particular license requirements. CIPOC
members concurred with this recommendation.
Using the NSGC Club House as example, and comparing it to other actual examples contained
in the handout, significant discussions by CIPOC Sub-Committee members centered on the
need to have consistent ITB requirements for the number of years that the firm is in business;
and various example situations were offered relating to newly created or acquired firms whose
individual key projects members could have signfcant construction experience. Staff explained
that the primary reason for including a higher firm experience requirement for the Club House
had more to do with the fact that the project involved a historical replication with highly detailed
finishes that would merit an experienced and established firm; with the sentiment shared by the
regulatory department for this type of work. Staff added that companies with proven track
records and client portfolios, that can meet all minimum ITB requirements and can solidly
represent themselves on the other selection evaluation criteria, are generally representative of
successful entities that possess the ability to manage carrying costs and other attributes
generally associated with financially capable and successful on-going concerns.
Sub-Committee members were agreeable wish setting higher experience requirements for the
project team members, but recommended that five years be set as the basic criteria for the
minimum years that a firm is in business. The public members in attendance were in support of
that recommendation and noted that their firms successfully managed projects that were of
significantly higher value, and thus were qualified to build a $2,000,000 Club House.
Overall, the Sub-Committee agreed that each project needs to be individually evaluated, in
terms of minimum requirement criteria. However, for the purpose of determining responsiveness
to the minimum requirement criteria, the Sub-Committee would like to see a more structured
format or checklist incorporated as a standard in ITBs as it relates to the minimum requirement
documents (as opposed to the current narrative format presently in place). To that end, CIP will
prepare a standard checklist, to include a set of minimum requirement categories that would be
specified for each project. The list wilt be forwarded to the Procurement Division for inclusion in
bid documents. If any particular category were not to be considered /applicable on a project,
then it would be marked as not applicable (NA). Previously used categories recommended by
staff, with concurrence of the CIPOC members, will include the following basic parameters wish
respect to the contractor's minimum qualifications:
- Years of Existence of the Firm and its Sub-Contractors: 3 Years (back-up explanation
would be included in the form if a greater number of years needed for highly specialized applications)
- Years of Experience of the Firm's Qualifier: 5 Years (back-up explanation would be included
in the form if a greater number of years needed for highly specialized applications)
- Firm's Qualifier License Requirement(s): General Contractor Certified in the State of
Florida
- Years of Experience and License Requirements of other key members of the Firm and
its Sub-Contractors project team:
Project Manager: License: (may vary by project & discipline)
Superintendent: License: (may vary by project & discipline)
Sub-consultant: License: (may vary by project 8 discipline)
- Number of Similar Projects:
Completed: (may vary by project)
Between (dates): and (may vary by project)
With a Minimum Value of: $ (may vary by project)
- Percent of the Work to be Self-performed: % (may vary by project)
- Other Project-Speck Minimum Requirements (e.g. installed 30" diameter force main piping,
experience with deep excavations/dewatering, etc.).
Staff suggested that -although the above criteria should be acceptable for most projects - on
occasion the project team would still need to have the latitude, based on the project's unique
technical requirements (e.g. Master Booster Pump Station, Golf Course), or a performance
requirement (e.g. build three projects in excess of $10M each) to require a greater number of
years of a firm's existence. CIPOC members concurred with this observation, as long as a
clarification for this deviation was included in the ITB document, or in the City Commission
Memorandum approving the issuance of the ITB.
Although various combinations of the above requirements are typically included in ITB
documents, it was agreed that the checklist format would make it easier to understand the
considerations used to set the minimum requirements, with added transparency.
After general discussion on what financial criteria should be considered, it was agreed that the
firm's net worth information or audited financial statements should not be a standard minimum
requirement. Staff noted that bonding is already a minimum requirement, adding that as part of
the bonding process, underwriters typically examine a company's liquidity and working capital,
cash flow, works in progress, over-billings /under-billings, change orders and claims -thus
providing a certain level of financial criteria screening. CIPOC members concurred that no
additional financial requirements would be recommended at this time as a minimum requirement
for responsiveness.
Staff also distributed for review a sample copy of a City standard supplement to bidltender form
section of an ITB document that addresses references, certifications, performance and
corporate information that contractors must complete as part of their submittals. It was also
noted that staff was reviewing the Miami-Dade County Public Schools Contractor
Prequal'rfication Certification Application for opportunities to incorporate any complementary
contractor information requirements into the City's ITB documents. CIPOC members also
reviewed the latter and complimented both forms, requesting that any appropriate elements
from the School Board's form be added into the Citys document.
Attachments:
1. CIP Handout on Minimum Contractor Qualifications
2. Attendance Roster
CIPOC Sub-Committee -Minimum Qualifications Review Attachment
March 12, 2009
MINIMUM CONTRACTOR QUALIFICATIONS
Considerations include:
- Experience of the Finn
-Based on complexity, value of the project and other considerations
- Varies by project
-Experience of the Qualifier (License Holder)
-Complexity of the project
-Technical
- Construction working environment
-Community 1 neighborhood interphase, issues
- Significant regulatory permitting requirements
- Other
- Value of the project
GENERAL GUIDELINES FOR YEARS OF EXPERIENCE -CONTRACTING FIRM 8 QUALIFIER
MfNrMUM
LOW COMPLEXITY AVER. COMPLEXITY HIGH COMPLEXITY
PROJ. PROJECT PROJECT
5 Years 7 Years 10 Years
OTHER CONSIDERATIONS /EXAMPLES
SOUTH POINTE WASTEWATER BOOSTER PUMP STATION -Minimum Requirements: Certified Building
Contractor; 10 years experience in industrial andlor water/wastewater plant experience, or large pump station
construction. Completed three projects, as prime contractor, that involved the cumulative installation of at
least 1,000 linear feet of sanitary force main piping greater than or equal to 30" in diameter, or installation of
at least three 30,000 GPM or greater pumps. Completed construction of at least one project exceeding S10M
in construction cost. Experience with large excavations requiring sheet piling and extensive groundwater
dewatering.
NORMANDY SHORES GOLF COURSE IMPROVEMENTS - Minimum Requirements: Golf Course
Contractor must be a Certified Member or Associate Member of the Golf Course Builders Association of
America, or a Golf Contractor must establish that they have been in the golf course construction business for
at least five years and have completed construction of an 18 hole golf course construction project in the past
3 years.
MULTIPURPOSE MUNICIPAL PARKING FACILITY -STRUCTURE -Minimum Requirements: Prospective
Bidders shall be required to provide proof, with their Bid, of having satisfactorily constructed and completed
on schedule, as a General Contractor, at least three (3} projects, each in excess of Ten Million dollars
($10,000,000) and of a complexity similar to that provide in the Project Documents. (Drawings Index and
Technical Specification as referenced in the respective Sections of the Bid Documents). Prospective Bidders
need not demonstrate a Parking Garage among their three projects in order to demonstrate compliance with
the aforestated minimum requirement. General Contractor will be required to self perform, at a minimum,
twenty-five percent (25%) of the work.
SOUTH POINTE PARK -Minimum Requirements: General Contractor certified in the State of Florida with a
minimum of five (5) years experience as a General Contractor. Bidder to have performed a minimum of three
(3) projects within the last 5 years, with a minimum of eight (8) million dollars in construction cost, with
emphasis on heavy civil, ecological sensitive environments and landscaping construction for beautification of
Parks, and/or BeachlBay Front related construction projects.
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