2003-25157 ResoRESOLUTION NO. 2003-25157
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AWARDING JOB ORDER CONTRACTS TO THE
FOLLOWING CONTRACTORS PURSUANT TO INVITATION FOR BIDS
("BID") NO. 72-02103 FOR PUBLIC WORKS PROJECTS; BID NO. 73-02103
FOR CITYWIDE CONSTRUCTION PROJECTS; AND BID NO. 75-02/03 FOR
CAPITAL IMPROVEMENTS PROJECTS: 1) HA CONTRACTING; 2) F & L
CONSTRUCTION; 3) CARIVON CONSTRUCTION; 4) TRAN CONSTRUCTION;
5) GRACE & NAEEM UDDIN, INC.; AND 6) TROPEX CONSTRUCTION, AT AN
ESTIMATED RANGE FROM $50,000 TO $1,000,000 PER CONTRACT BASED
ON PERFORANCE, WHEREBY FUNDS HAVE BEEN APPROPRIATED BY
THE CITY COMMISSION; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE ALL CONTRACTUAL AGREEMENTS THERETO.
WHEREAS, the Mayor and City Commission, at its December 20, 2000 meeting,
referred to the Finance and Citywide Projects Committee, a Job Order Contracting
(JOC) system for achieving timely and cost effective procurement of maintenance and
construction services for capital projects; and
WHEREAS, the Finance and Citywide Projects Committee, at its February 12,
2001 meeting, listened to a presentation from the Administration relative to the JOC
System and its benefits, and recommended that the Administration pursue the
implementation of the JOC system for timely completion of construction projects; and
WHEREAS, on February 21, 2001, Commissioner Simon Cruz provided the City
Commission with a verbal report relative to the Finance and Citywide Projects
Committee's recommendation, as stated above; and
WHEREAS, on July 18, 2001, the Mayor and City Commission adopted
Resolution No. 2001-24524, which authorized the issuance of Request for Proposals
(RFP) No. 49-00/01, for the establishment of a JOC system for achieving timely and
cost effective procurement of maintenance and construction services for capital
projects; and
WHEREAS, on April 10, 2002, the Mayor and City Commission adopted
Resolution No. 2002-24818, which authorized the Administration to enter into
negotiations with The Gordian Group, Inc.; and
WHEREAS, on July 10, 2002, the Mayor and City Commission adopted
Resolution No. 2002-24914, which authorized the Mayor and City Clerk to execute an
agreement with The Gordian Group for the establishment of the JOC system; and
WHEREAS, The Gordian Group developed the project manual, the construction
task catalog, and the terms and conditions of Invitation for Bid No. 72-01102 for Public
Works Projects; Bid No. 73-01/02 Citywide Construction Projects; and Bid No. 75-01/02
for Capital Improvements Projects; and
WHEREAS, a mandatory pre-bid conference for Bid Nos. 72-01/02, 73-01/02,
and 75-01/02 was held on January 14, 2003, and at said pre-bid conference for all bids
the particulars of the JOC Bids were discussed; and
WHEREAS, all bidders were provided with a Bid package that consisted of the
following three major documents:
1. A location specific Unit Pdce Book containing over 140,000 construction
tasks. Each task contains a task description, unit of measurement, and a
unit price. Each unit price contains locally developed direct costs for
material, equipment, and labor. The construction tasks encompass all
aspects of construction work;
2. A set of detailed technical specifications for each of the 140,000
construction tasks. The specification set incorporates the City's own
specifications; and
3. The terms and conditions that contain the specific contract language
concerning the execution of the contract; and
WHEREAS, on January 28, 2003, the City received 10 bids for the Citywide JOC
Contract (#73-01/02); on January 30, 2003, the City received 8 bids for Public Works
Contract (#72-01/02); and 9 bids for the Capital Improvements Program JOC Contract
(#75-01/02); and
WHEREAS, the recommended contractors were selected based on the following
evaluation cdteria which was incorporated into all three Invitation for Bids:
a. Factor Weights for Determining the Low Bid Only:
-Type of Work Non Davis Bacon -- 90%
-Type of Work ~Davis Bacon -- 10%
-Normal Working Hours - 90%
-Other Than Normal Hours - 10%
-Architectural and Engineering Services -- 30%
b. The ability, capacity and skill of the bidder to perform the contract.
c. Whether the bidder performed satisfactory on contracts within the time
specified, without delay or interference.
d. The character, integrity, reputation, judgment, experience and efficiency of
the bidder.
e. The quality of performance of previous contracts.
f. The previous and existing compliance by the bidder with laws and
ordinances relating to the contract; and
WHEREAS, the JOC system will enable the City to achieve its pdmary objective
of being able to "more rapidly engage contractors" while lowering costs and
strengthening internal controls; and
Davis Bacon will be required to be paid only on projects funded with Federal dollars.
WHEREAS, JOC does not replace any of the existing contracting systems
including program management services.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, awarding contracts to the
following contractors pursuant to Invitation for Bids ("Bid") No. 72-02/03 for Public
Works Projects; Bid No. 73-02/03 for Citywide Construction Projects; and Bid No. 75-
02/03 for Capital Improvements Projects: 1) HA Contracting; 2) F & L construction; 3)
Carivon Construction; 4) Tran Construction; 5) Grace & Naeem Uddin, inc.; and 6)
Tropez Construction, at an estimated annual amount of $1,000,000 per contract,
whereby funds have been appropriated by the City Commission; and further authorizing
the Mayor and City Clerk to execute all contractual agreements thereto.
PASSED and ADOPTED THIS 19th
AT'~'EST:
CITY CLERK
day of
/ MJ~YOR
T:~AGENDA~2003\mar1903Xregular~ResoJoc.doc
~-- Date
'--~en,/~l Counsel
FORM & LANGUAGE
& FOR EXECUTION
CITY OF MiAMi BEACH
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution to Award Contracts to Contractors for Capital Improvements, Public Works, and other
Citywide Projects.
Issue:
Shall the City Commission Award Contracts to Contractors for Capital improvements, Public Works, and
Iother Citywide Projects?
Item Summary/Recommendation:
· The Job Order Contracting System will enable the City to achieve its primary objective of being able to "more
rapidly engage contractors" while lowering costs and strengthening internal controls. JOC does not replace
any of the existing contracting systems including program management services. JOC is just an efficient and
effective tool for the City to use in accomplishing its facilities maintenance and construction program. JOC is
a proven system that can offer immediate as well as long-term benefits.
Individual Job Orders issued will determine the Scope of work under this Contract. Upon receipt of a Notice
to Proceed, the Contractor will furnish all architectural and engineering services to support individual Job
Orders, shop drawings, samples, management, documentation, materials, supplies, parts (to included
system components), transportation, plant, supervision, labor and equipment needed to perform the work at
designated City properties.
The Contracts will include but not be limited to the following construction repair, renovation, or new
construction projects: Public Works, Capital Improvements Projects, Facilities and Parks, Parking, and the
Miami Beach Convention Center. The Public Works Department and the Capital Improvements Program
(CIP) Office will administer the Contracts.
RECOMMEND THAT THE CITY COMMISSION ADOPT THE RESOLUTION.
Advisory Board Recommendation:
IThe Finance and Citywide Projects Committee at its February 12, 2001 meeting, listened to a presentation
from the Procurement Director re ative to the JOC System and its benefits, and recommended that the City
Administration pursue the implementation of the JOC system for timely completion of minor construction
projects.
Financial Information: Funds are available from the capital improvements budget accounts allocated to
City Departments and/or Divisions, subject to Office of Management and Budget review. Each contract has a
maximum estlmateo annual value Ul
Source of Amount Account ApprOved
Funds: I N/A N/A
2
3
4
Finance Dept. Total
City Clerk's Office Legislative Tracking:
I Gus Lopez, ext. 6641
Sign-Offs:
Department Director Assistant City Manager City Manager
T:V~GENDA~2003\mar1903\regular~SummaryJOC.d°c
AGENDA ITEM
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM
Mayor David Dermer and DATE: March 19, 2003
Members of the City Commission
Jorge M. Gonzalez ~, .,.~,-"/
City Manager
A RESOLUTION OF MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AWARDING JOB ORDER CONTRACTS TO THE FOLLOWING
CONTRACTORS PURSUANT TO INVITATION FOR BIDS ("BID") NO. 72-02/03 FOR
PUBLIC WORKS PROJECTS; BID NO. 73-02/03 FOR ClTYWlDE CONSTRUCTION
PROJECTS; AND BID NO. 75-02/03 FOR CAPITAL IMPROVEMENTS PROJECTS: 1)
HA CONTRACTING; 2) F & L CONSTRUCTION; 3) CARIVON CONSTRUCTION; 4)
TRAN CONSTRUCTION; 5) GRACE & NAEEM UDDIN, INC.; AND 6) TROPEX
CONSTRUCTION, AT AN ESTIMATED ANNUAL RANGE FROM $50,000 TO
$1,000,000 PER CONTRACT BASED ON PERFORMANCE, WHEREBY FUNDS HAVE
BEEN APPROPRIATED BY THE CITY COMMISSION; AND FURTHER AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE ALL CONTRACTUAL AGREEMENTS
THERETO.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
FUNDING AND AMOUNT
Funds are available from the capital improvements budget accounts allocated to City
Departments and/or Divisions, subject to Office of Management and Budget review.
Each contract has a maximum estimated annual value of $1 million.
ANALYSIS
The Mayor and City Commission at its December 20, 2000 meeting, referred to the
Finance and Citywide Projects Committee - Job Order Contracting (JOC) System for
Achieving Timely and Cost Effective Procurement of Maintenance and Construction
Services for Capital Projects.
The Finance and Citywide Projects Committee at its February 12, 2001 meeting,
listened to a presentation from the Procurement Director relative to the JOC System
and its benefits, and recommended that the City Administration pursue the
implementation of the JOC system for timely completion of minor construction projects.
On February 21, 2001, Commissioner Simon Cruz provided the City Commission with a
verbal report relative to the Finance and Citywide Projects Committee's
recommendation as stated above.
Job Order Contracting
March 19, 2003
Page 2 of 8
On July 18, 2001, the Mayor and City Commission adopted Resolution No. 2001-24524,
which authorized the issuance of a Request for Proposals (RFP) for the establishment
of a Job Order Contracting (JOC) System for Achieving Timely and Cost Effective
Procurement of Maintenance and Construction Services for Capital Projects.
On April 10, 2002, the Mayor and City Commission adopted Resolution No. 2002-
24818, which authorized the Administration to enter into negotiations with The Gordian
Group.
On July 10, 2002, the Mayor and City Commission adopted Resolution No. 2002-24914,
which authorized the Mayor and City Clerk to execute an agreement with The Gordian
Group for the establishment of the JOC system.
BID PROCESS
A mandatory pre-bid conference was held on January 14, 2003. The pre-bid
Conference was held for the purpose of discussing the JOC concept and the Contract
Documents, the City's construction program, and bid considerations. Bidders had to be
represented by a person that would be directly involved in preparing the JOC bid and
responsible for executing the construction work. A total of 18 bidders attended the pre-
bid conference.
General guidance was given to all potential bidders during the pre-bid conference that
the City cannot give any specific information regarding individual projects or types of
projects. No commitment is made with regard to which specific tasks will be used or in
what quantities.
Intending bidders were required to submit a "bid" on all work contained in the unit price
book by quoting a single adjustment factor that would be applied for work accomplished
during normal working hours and a single adjustment factor for work to be accomplished
during other than normal working hours. These two adjustment factors represent the
contractor's only adjustment to the prices published in the unit price book and must
include all indirect cost such as overhead, profit, bonds, insurance, design and
contingency costs.
For example, an adjustment factor of 25% would be bid as 1.25. During the execution of
the contract the unit price of a specific construction task is multiplied by the appropriate
adjustment factor to obtain the final price to be paid for the specific task. JOC
represents a competitively bid, firm fixed price contract since all the prices and the
adjustment factors are established before the contract is awarded.
Job Order Contracting
Ma~ch 19, 2003
Page 3 of 8
All bidders were provided with a Bid package that consisted of the following three major
documents:
· A location specific Unit Price Book containing over 140,000 construction tasks.
Each task contains a task description, unit of measurement, and a unit price.
Each unit price contains locally developed direct costs for material, equipment,
and labor. The construction tasks encompass all aspects of construction work.
· A set of detailed technical specifications for each of the 140,000 construction
tasks. The specification set incorporates the City's own specifications.
· The legal terms and conditions that contain the specific contract language
concerning the execution of the contract.
BID RESULTS/DETERMINATION OF AWARD
On January 28, 2003, the City received 10 bids for the Citywide JOC Contract (#73-
01/02). And on January 30, 2003, the City received 8 bids for Public Works Contract
(#72-01/02), and 9 bids for the ClP JOC Contract (#75-01/02). The results are attached.
The recommended contractors were selected based on the following evaluation criteria
which was incorporated into all three Invitation for Bids:
a. Factor Weights for Determining the Low Bid Only:
-Type of Work Non Davis Bacon -- 90%
-Type of Work ~ Davis Bacon -- 10%
-Normal Working Hours - 90%
-Other Than Normal Hours - 10%
-Architectural and Engineering Services -- 30%
b. The ability, capacity and skill of the bidder to perform the contract.
c. Whether the bidder performed satisfactory on contracts within the time specified,
without delay or interference.
d. The character, integrity, reputation, judgment, experience and efficiency of the
bidder.
e. The quality of performance of previous contracts.
f. The previous and existing compliance by the bidder with laws and ordinances
relating to the contract.
Bids were considered only from firms normally engaged in performing the type of work
specified within the Contract Documents. Bidder must have adequate organization,
facilities, equipment, and personnel to ensure prompt and efficient service to City.
Davis Bacon will be required to be paid only on projects funded with Federal dollars.
Job Order Contracting
March 19, 2003
Page 4 of 8
In determining a Bidder's responsibility and ability to perform the Contract, City
investigated and requested information concerning the financial condition, experience
record, personnel, equipment, facilities, principal business location and organization of
the Bidder, the Bidder's record with environmental regulations, and the claims/litigation
history of the Bidder.
Scope of Work:
Individual Job Orders issued will determine the Scope of work under this Contract.
Upon receipt of a Notice to Proceed, the Contractor will furnish all architectural and
engineering services to support individual Job Orders, shop drawings, samples,
management, documentation, materials, supplies, parts (to included system
components), transportation, plant, supervision, labor and equipment needed to perform
the work at designated City properties.
The Contracts will include but not be limited to the following construction repair,
renovation, or new construction projects: Public Works, Capital Improvements Projects,
Facilities and Parks, Parking, and the Miami Beach Convention Center.
The Public Works Department and the Capital Improvements Program (CIP) Office will
administer the Contracts.
Evaluation:
The contractor will be evaluated on each Job Order.
impact the issuance of future Job Orders.
Results of the evaluation will
Contract Price:
The Contract Price is to include the furnishing of all labor, materials, equipment
including tools, services, obtaining permits, applicable taxes, overhead, architectural
and engineering services, overhead and profit for the completion of each Job Order.
The cost of any item(s) of Work not covered by a specific Contract unit price shall be
treated as a Non Pre-priced item and the procedure for ordering these tasks are
outlined in Article 12 of the JOC Supplemental Conditions.
Why JOC?
Traditional System can be Too Slow and Costly
Can take 6-18 Months from Project Identification to Award of Contract
· Process has Become Time Consuming and Costly for the small to medium size
projects
· Structure Routinely Results in Adversarial Relationship Between The City and
Contractor
Job Order Contracting
March 19, 2003
Page 5 of 8
Job Order Contracting Concept Offers a Cost Effective Alternative to the
Traditional System
· Faster Response - Approx. 30-45 Days from Project Identification to Notice to
Proceed
· Well Defined Goal Oriented Administration
· Based upon a Partnership Between Miami Beach and JOC Contractors
Lower Costs
· Actual Cost of Construction
Contractor bids $3 Million Contract - Not a $25,000 project
Greater Maximum Value=Lower Adjustment Factors=Greater Savings
· Lower Procurement and Administrative Costs
JOC Eliminates the Need to Use the Full Procurement Cycle for Small Projects
· No need to pay for advertisements & reproduction of documents
· Fewer Change Orders and Claims
- Joint Scoping Process Eliminates Misunderstandings About Scope
Contractor Develops the Cost Proposal - Responsible for Errors and Omissions
Reduction of ArchitectJEngineer Fees
Greater Participation
· JOC Increases the
Number of Opportunities for Small, Local & Emerging
Businesses
No Pre-established quantities inhibits trade staffing by Prime Contractor
- Responsiveness forces Prime Contractor to use multiple local subcontractors
Review & Approval of Sub-Contractor Plan Prior to Issuance of Each Job Order
Ensures Compliance with Expectations
Advantages for Small & Emerging Business Contractors Expanded business opportunities
No bonding requirement for the sub-contractor
Fast Payment
Less Red Tape
Why JOC works:
JOC Is A Series Of Individual Small Projects · Contractor Is Guaranteed Only a Small Minimum Amount of Work
· Potential Exists for Large Maximum Amount of Work
Contractor Has A Continuing Financial Incentive To Provide: · Responsive Services
· Quality Work
Job Order Contracting
March 19, 2003
Page 6 of 8
Future Job Orders Tied to Contractor Performance
No Obligation To Give A Specific Project To JOC Contractor
Additional JOC's May Be Awarded If the City is Not Satisfied With Contractor
Performance
· JOC Does Not Replace Traditional Methods For Accomplishing Work
How Does It Work?
The Job Order Contract is a specially designed indefinite quantity contract that is
awarded on a periodic basis to one or more contractors. Each JOC is competitively
procured using either a sealed bid or a request for proposal and has a pre-established
minimum and maximum dollar amount. Work Js accomplished by the issuance of a
series of individual work orders to the contractor. This continuing incentive allows the
contractor to be continually rewarded for providing quality and responsive work.
The actual JOC execution process begins with joint review of the scope of work
between the City and the contractor. This review will include an on-site inspection. After
the scoping conference the City provides the contractor with a formal scope of work.
The level of detail and design included in the scope of work is a function of the difficulty
of that particular project. The contractor breaks the scope of work down into individual
tasks and prepares his pricing proposal using the unit price data contained in the unit
price book. The total price is achieved by multiplying the specific construction task by
the appropriate quantities for that task and then multiplying by the adjustment factor.
As part of the pricing proposal, the contractor also develops a schedule and assembles
any technical data requested by the City. The proposal is then evaluated against the
City's in-house estimate and any differences in scope or quantities are verified. If the
City is satisfied that the contractor's proposal represents a fair and reasonable price for
the work, then a firm fixed priced, lump sum work order can be issued to the contractor.
This work, order is the contractor's notice to proceed. Inspection and acceptance of work
are accomplished in the normal fashion.
JOC Program Structure: · Work Can be Assigned Anywhere in the City and by any Department
· Goal is to assign projects based on the Department assigned to each contract
and the performance demonstrated by the contractor
JOC Execution Process:
Joint Scope- Develop Scope of Work
-(Miami Beach & Contractor In the Field)
· Request for Proposal
Job Order Contracting
March 19, 2003
Page 7 of 8
Contractor Develops Proposal
-Selects Tasks and Estimates Ouantities
-Some projects Prepares Drawings/Plans
-Develops Schedule & Subcontractor Plan (including Subcontractor Info)
-Submittal Information-Technical Information
Contractor's Proposal Reviewed & Approved
Miami Beach Issues Lump Sum Job Order
Expectations of the JOC Contractors:
To be Successful, a JOC Contractor Must:
-Demonstrate Technical Qualifications
-Submit Lowest Cost Proposals
Provide the City with a Responsive and Experienced Management Team That is
Capable of:
-Preparing and Executing Multiple Projects at Multiple Locations Simultaneously
-Delivering High Quality Work in a Timely Manner
-Managing a Large Number of Subcontractors
-Maintaining a "Can Do" Partnership Attitude
-Providing on-site Supervision to Subcontractors
Financial Resources to Undertake the Projected Level of Work:
-Underwrite Mobilization Costs
-Assist Small Subcontractors with Paperwork and Material Expenses
-Long Lead Time Before a Positive Cash Flow (Minimum of 75 Days)
JOC Contractors Should Expect To:
Provide Architectural/Engineering Services on some Projects-For Some Projects
Miami Beach May Provide Drawings
-For Other Projects Miami Beach Will Provide Partially Developed Drawings or Will
Provide No Drawings at All
-Examples of Architectural/Engineering Include, but Are Not Limited To: Stamped and
Sealed Drawings, Sketches, Calculations, Landscape Plans, Interior Design, Restroom
Layout, irrigation Plans, Utility layouts, Working Documents, Shop Drawings, And
Specifications, and "As Built" Drawings as Required By State and Local Law.
Be Knowledgeable in Computer Operations
-Electronic Transfer of Data and Drawings
Receive No Change Orders
-Changes Minimized by Joint Scoping, Proposal Review and Lump Sum Nature of Job
Order
-Changes for Unforeseen or Hidden Conditions, if any, Embodied in New Job Orders at
Pre-established Unit Prices
Job Order Contracting
March 19, 2003
Page 8 of 8
Adjustment Factors Include Everything!
-Overhead, Profit, Bonds, Insurance
-Scoping, Proposal Development and Review
-Mobilization, Management, Clean-up
-Safety Supervision, Training
-Architecture and Engineering
Each contract will have an initial term equal of 12 months. Each contract will include an
option for two (2) additional one-year renewals. Renewals shall be subject to prior
approval of the City Manager. The Contract duration shall not exceed three (3) years.
An option term may be exercised when the maximum value of $1,000,000 is achieved
or the expiration of the 12 month term.
CONCLUSION
In summary, the Job Order Contracting System will enable the City to achieve its
primary objective of being able to "more rapidly engage contractors" while lowering
costs and strengthening internal controls. JOC does not replace any of the existing
contracting systems including program management services. JOC is just an efficient
and effective tool for the City to use in accomplishing its facilities maintenance and
construction program. JOC is a proven system that can offer immediate as well as
long-term benefits.
The administration recommends that the Mayor and City Commission award contracts
to the following contractors pursuant to Invitation for Bids No. 72-02/03, 73-02/03, and
75-02/03: 1) HA Contracting; 2) F & I Construction; 3) Carrion Construction; 4) TRAN
Construction; 5) Grace & Naeem Uddin, Inc.; and 6) TROPEX Construction, for capital
improvements projects, public works projects, and other citywide projects whereby
funds have been appropriated by the City Commission; and further authorizing the
Mayor and City Clerk to execute all contractual agreements thereto.
JMG:RCM:FB:TM:GL
F:~CMGR~AGEN DA~.2003\mar1903\regular~JOC .Draft1 .doc