Loading...
2018-30605 Resolution 2018-30605 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE FOR STREAMLINING THE CITY'S PROCUREMENT PROCESS; AND DIRECTING THE ADMINISTRATION TO DEVELOP (1) A CONTRACTOR PRE- QUALIFICATION PROGRAM; (2) A JOB ORDER CONTRACTING PROGRAM; AND (3) PROPOSED AMENDMENTS TO THE PROCUREMENT SECTIONS OF THE CITY CODE, FOR FURTHER CONSIDERATION BY THE CITY COMMISSION. WHEREAS, on June 29, 2018, the Finance and City-Wide Projects Committee (the "Finance Committee") held a discussion on a number of options for streamlining the procurement process to make it easier for vendors to do business with the City and for expediting the process for awarding projects; and WHEREAS, at that time, the Committee directed staff to meet with each commissioner to discuss possible options for streamlining; and WHEREAS, after discussing options for streamlining with each Commissioner that was available to meet, on October 26, 2018, the Finance Committee recommended the following options for streamlining the City's procurement process: 1. Establishing a contractor pre-qualification program; and 2. Implementing job order contracting (JOC) program; and 3. Increasing the formal bid thresholds for construction related services to $200,000; and 4. Increasing the formal bid thresholds for non-construction goods and services to $100,000; and 5. Updating outdated sections of the City Code relating to procurement of goods and services; and WHEREAS, the foregoing options are further described in the Commission Memorandum accompanying this Resolution. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the Finance Committee for streamlining the City's procurement process; and directing the Administration to develop (1) a contractor pre-qualification program; (2) a job order contracting program; and (3) proposed amendments to the procurement sections of the City Code, for further consideration by the City Commission. PASSED AND ADOPTED n , .a,A-mbber 14, 2018. ATTEST: \�''`.•..8. 'Q APPROVED AS TO 9 FORM &LANGUAGE • i fAIr &FOR EXECUTION CI CLERK . r Y9F8 WORP ORATEDF a afr I I NOV 2 6 20 .��� City Attomey n 1p‘? Date :Stk./ 26.. v Resolutions-CT X MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Jimmy L. Morales, City Manager DATE: November 14, 2018 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE FOR STREAMLINING THE CITY'S PROCUREMENT PROCESS; AND DIRECTING THE ADMINISTRATION TO DEVELOP (1)A CONTRACTOR PRE-QUALIFICATION PROGRAM; (2) A JOB ORDER CONTRACTING PROGRAM; AND (3) PROPOSED AMENDMENTS TO THE PROCUREMENT SECTIONS OF THE CITY CODE, FOR FURTHER CONSIDERATION BY THE CITY COMMISSION, RECOMMENDATION Adopt the Resolution. ANALYSIS At the June 29,2018 Finance and City-Wide Projects Committee(the"Finance Committee"),discussed a number of options for streamlining the procurement process to make it easier for vendors to do business with the City and for expediting the process for awarding projects.At that time,the Committee directed staff to meet with each commissioner to discuss possible options for streamlining. After discussing options for streamlining with each Commissioner that was available to meet,on October 26,2018,the Finance Committee considered the following options for streamlining the City's procurement process. See Attachment Afor the Finance Committee presentation. 1. Establish a Contractor Pre-qualification Program. For certain projects, state law requires contractors to be pre-qualified. For these projects, the City currently pre-qualifies contractors under a two-step RFP process. However, this process can be expedited by prequalifying contractors on a parallel process outside of the solicitation process. Once the solicitation is approved for issuance,the prequalification process would have been completed and technical proposals can be received without delays. The Finance Committee recommends that the Mayor and City Commission approve the recommendation of the Finance Committee to establish a contractor pre-qualification program. Next Steos— The Administration will submit a pre-qualification program policy for approval on or before the January City Commission meeting. 2.Reconsider Implementing Job Order Contracting.Prior to 2012,the City used the Job Order Contracting(JOC)process extensively. However, certain internal control failures led to the JOC process being discontinued.All of the prior failures of the farmer JOC process have now be addressed by internal controls implemented by the Gordian Group, the JOG software providers. Many governmental agencies utilize JOG to expedite delivery of construction projects. The Finance Committee recommends that the Mayor and City Commission approve the recommendation of the Finance Committee to implement a Job Order Contracting program. Next Stens — The Administration will submit a Job Order Contracting policy and well as any necessary agreements for the construction task catalog,for approval on or before the January City Commission meeting. 3. Consider Increasing the Formal Bid Thresholds. Currently, all expenditures in excess of $50,000 require formal competition(ITB, RFP, RFQ).The process,because of the requirements associated with it,can take upwards of 3 months.The Committee may consider increasing the threshold as follows: . Construction — Florida State law does not require formal bids to be issued for construction projects under $304000. Therefore. the Committee may consider increasing the formal solicitation threshold for construction uo to that amount. Projects below this amount may be awarded through one of the following methodologies: JOC. 2. Proposals from Pm-Qualified Pool of Contractors. 3. Open Market Quotes per Sec.2-395 of City Code. The Finance Committee recommends that the Mayor and City Commission approve increasing the formal bid threshold for construction related services to$200,000. Next Steps — The Administration will submit the necessary ordinance changes for approval on or before the January City Commission meeting. • Goods and Services—Unlike construction,for goods and non-construction services the State of Florida does not dictate the threshold at which formal solicitations rust be issued. The formal solicitation threshold for state agencies is$65,000. The threshold for Miami Dade County is currently$250,000. The same threshold for the City of Miami is$50,000, but is currently under review. Other municipal agencies within the State have increased formal solicitation thresholds for goods and services usually between$65,000 and$100,000. The Finance Committee recommends that the Mayor and City Commission approve increasing the formal bid threshold for construction related services to$100,000. Next Steps — The Administration will submit the necessary ordinance changes for approval on or before the January City Commission meeting. 4. Streamline Procurement Code. There are certain sections of the Procurement Code that are outdated and do not allow certain processes to be streamlined. The Administration recommends that the Procurement Code be reviewed to assure that it supports strearriined processes.Some recommendations for updating include: • Clearly stipulating conditions for exempt and sole source procurements. • Updating formal solicitation thresholds as indicated above. • Reconsidering the requirement to advertise all formal solicitations newspapers,rather than through electronic means. • Updating the requirements for protesting award recommendations to reduce delays in the award of contracts. The Finance Committee recommends that the Mayor and City Commission approve a review of the Procurement Code to address outdated provisions. Next Steps — The Administration will submit the necessary ordinance changes for approval on or before the January City Commission meeting. CONCLUSION The Administration recommends that the Mayor and City Commission approve the recommendations of the Finance Committee to streaniine the City's procurement process. KEYINTENDFD OUTCOMES SUPPORTED Streamline The Delivery Of Services Through All Departments Legislative Tracking Procurement Sponsor Commissioner Ricky Arriola ATTACHMENTS. Description 3 Resolution-Supplemental