Loading...
Resolution 2024-33224 RESOLUTION NO. 2024-33224 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PURSUANT TO REQUEST FOR QUALIFICATIONS NO.2024- 303-WG, JOB ORDER CONTRACTING ("JOC") FOR ROOFING OR ELECTRICAL CONSTRUCTION PROJECTS; AUTHORIZING THE ADMINISTRATION TO ESTABLISH A POOL OF PRE-QUALIFIED CONTRACTORS, AS SET FORTH IN ATTACHMENT A; FURTHER AUTHORIZING THE CITY MANAGER AND THE CITY CLERK TO EXECUTE AGREEMENTS WITH EACH OF THE RECOMMENDED PROPOSERS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS; AND REQUIRING THAT ANY PROJECT TASK ORDER WITH A VALUE GREATER THAN $2 MILLION BE SUBJECT TO THE PRIOR APPROVAL BY THE MAYOR AND CITY COMMISSION. WHEREAS, on April 3, 2024, the Mayor and City Commission approved to issue an RFQ for Job Order Contracting ("JOC")for roofing or electrical construction projects; and WHEREAS, on April 5, 2024, RFQ 2024-303-WG was issued; and WHEREAS, on May 23, 2024, the City received proposals from the following contractors in each category: Roofing • AJ Roofing Corp • A-1 Property Services Group, Inc. • Advanced Roofing, Inc. • Electrical • AGC Electric, Inc. • Edd Helms Electric, LLC • R&D Electric, Inc. • South Florida Electrical Consultant, Inc.; and WHEREAS, on July 8, 2024, the Evaluation Committee comprised of Martin Calcano, Facilities Capital Projects Coordinator, Facilities and Fleet Management Department, Elizabeth Estevez, Parks Capital Projects Manager, Parks and Recreation Department, Herman Fung, Project Manager, Office of Capital Improvement Projects, Pablo Gomez, Senior Capital Projects Coordinator, Office of Housing and Community Services and Rodney Perez, Project Manager, Police Department, convened to consider the responsive proposals received; and WHEREAS, the Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance, the Government Sunshine Law, general information on the scope of services and a copy of each proposal; and WHEREAS, the Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFQ; and WHEREAS, the evaluation process resulted in the proposers being ranked by the Evaluation Committee in the following order: Roofing 1st ranked -AJ Roofing Corp 2nd ranked -Advanced Roofing, Inc. 3rd ranked -A-1 Property Services Group, Inc. - Electrical 1st ranked'=South Florida Electrical Consultant, Inc. 2nd ranked -AGC Electric, Inc. . 3rd ranked - R&D Electric, Inc. 4th ranked - Edd Helms Electric, LLC. 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 accept the recommendation of the City Manager pursuant to .request for qualifications no. 2024-303-WG, Job Order Contracting for Roofing or Electrical Construction Projects; authorize the Administration to establish a pool of pre-qualified contractors, as forth in attachment a; further authorize the City Manager and the City Clerk to execute agreements with each of the recommended proposers upon conclusion of successful negotiations; and require that any project task order with a value greater than $2 million be subject to the prior approval by the Mayor and City Commission. PASSED AND ADOPTED this II day of S' 1 6,a024. ATTEST: REP 1 7 2024 RAFAEL E. GRANADO, CITY CLERK STEVEN MEINER, MAYOR 'tNCORP ORATED ,�� '4'61-11'26,__= APPROVED AS TO FORM & LANGUAGE & FORE CUTION - 1Z?h2oZ }� City Attorney ' Date Procurement Requests -C2 A MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: September 11, 2024 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PURSUANT TO REQUEST FOR QUALIFICATIONS NO.2024-303-WG, JOB ORDER CONTRACTING ("JOC") FOR ROOFING OR ELECTRICAL CONSTRUCTION PROJECTS; AUTHORIZING THE ADMINISTRATION TO ESTABLISH A POOL OF PRE-QUALIFIED CONTRACTORS, AS SET FORTH IN ATTACHMENT A; FURTHER AUTHORIZING THE CITY MANAGER AND THE CITY CLERK TO EXECUTE AGREEMENTS WITH EACH OF THE RECOMMENDED PROPOSERS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS; AND REQUIRING THAT ANY PROJECT TASK ORDER WITH A VALUE GREATER THAN $2 MILLION BE SUBJECT TO THE PRIOR APPROVAL BY THE MAYOR AND CITY COMMISSION. (FACILITIES AND FLEET DEPARTMENT) RECOMMENDATION The City Administration ("Administration") recommends that the Mayor and City Commission ("City Commission")approve the Resolution. This solicitation is under the cone of silence. BACKGROUND/HISTORY Job Order Contracting ("JOC") is a project delivery method utilized by many public organizations to expedite construction projects through competitively bid, fixed price, multi-year contracts. JOC contracts are based on a construction task catalog, which includes unit pricing for over 300,000 tasks potentially needed on a project, and an agreed-upon multiplier, which covers the contractor's overhead, insurance, and profit. JOC has been used extensively for over 40 years by federal, state, and local organizations. A white paper on the JOC process is attached hereto as Attachment B. One of the most important considerations in a JOC process is a comprehensive and accurate construction task catalog ("CTC"). To that end, the City has partnered with The Gordian Group, the nation's leading provider of facility and construction cost data, software, and services for the JOC process and all phases of the building lifecycle. The Gordian Group prepares a CTC that is issued with the solicitation and is based on construction task pricing in the local area. The CTC may be adjusted annually based on local market pricing fluctuations. When a project is ready for construction, a contractor and the organization work together to develop the task order for the construction phase of the project based on the CTC tasks needed for the project. The multiplier, which is preset in the contract, is applied to the sum of all CTC tasks that will be required for the project. The multiplier includes the contractor's overhead, insurance, and profit. The steps of the task order development phase are outlined below. Step 1 —Joint Scope Meeting: City and contractor review project and design details. Page 34 of 1377 • Step 2— Price Proposal: Contractor prepares a detailed price proposal by selecting the tasks in the CTC needed for the project. The contract multiplier is applied to the sum of all CTC tasks. Step 3—Price Proposal Review: City reviews price proposal to ensure that the correct CTC tasks, quantities, and multiplier have been applied. Step 4— Task Order Approval: Task orders with a value of up to $2 million will be approved by the City Manager or designee. Task orders with.a value greater than $2 million to be subject to prior approval by the Mayor and City Commission. Step 5—The contractor provides the bonds (if applicable) and the work may commence. Through JOC, projects can move from design to construction in a matter of weeks, not months as is typical when a separate procurement must be processed for each project. The ability to quickly assign competitively selected contractors to time-sensitive projects, including projects for maintenance or repairs and projects funded through general obligation bonds, is critical to expediting the City's capital program and maintenance needs. On October 16, 2019, the Mayor and City Commission approved the City Manager's recommendation to award contracts to 18 contractors pursuant to ITB 2019-257-KB for job order contracting services—various trades. The Agreements are presently scheduled to expire in November 2024. As a result, the Administration prepared Request for Qualifications ("RFQ") 2024-303-WG for Job Order Contracting ("JOC") for roofing or electrical construction projects seeking proposals for a replacement contract. ANALYSIS On April 3, 2024, the Mayor and City Commission approved the issuance of RFQ No. 2024-303- WG for Job Order Contracting for roofing or electrical construction projects. On April 5, 2024, the RFQ was issued. A voluntary pre-proposal meeting was held on April 18, 2024. Sixty-six (66) prospective bidders accessed the solicitation. RFQ responses were due and received on May 23, 2024. The City received proposals from the following contractors in each category: Roofing A&J Roofing Corp. A-1 Property Services Group, Inc. Advanced Roofing, Inc. Electrical AGC Electric, Inc. Edd Helms Electric, LLC R&D Electric, Inc. South Florida Electrical Consultant, Inc. On June 5, 2024, the Interim City Manager appointed the Evaluation Committee via LTC # 228- 2024. The Evaluation Committee (the "Committee") convened on•July 8, 2024, to consider the proposals received. The Committee was comprised of Martin Calcano, Facilities Capital Projects Coordinator, Facilities and Fleet Management Department, Elizabeth Estevez, Parks Capital Projects Manager, Parks and Recreation Department, Herman Fung, Project Manager, Office of Capital Improvement Projects, Pablo. Gomez, Senior Capital Projects Coordinator, Office of Housing and Community Services and Rodney Perez, Project Manager, Miami Beach Police Department. • The Committee was provided with an overview of the project and information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of each proposal. The • Committee was instructed to score and rank each proposal pursuant to the evaluation criteria Page 35 of 1377 established in the RFQ. The evaluation process resulted in the ranking of proposers as indicated in Attachment C and below. Roofing 1st ranked -A&J Roofing Corp. 2nd ranked -Advanced Roofing, Inc. 3rd ranked -A-1 Property Services Group, Inc. Electrical 1st ranked - South Florida Electrical Consultant, Inc. 2nd ranked -AGC Electric, Inc. 3rd ranked - R&D Electric, Inc. 4th ranked - Edd Helms Electric, LLC The current agreement for JOC services has multiple contractors awarded for each category of work. During the term of the current agreement, the task orders have been issued for approximately 24 projects, with an average project cost of approximately $309,000, totaling approximately $7.4 million. Accordingly, based on prior usage of the services and the projected volume of work for which the JOC services would be required, staff recommends awarding to the following top-ranked contractors in each category. A summary of each firm is available upon request. Roofing 1st ranked -AJ Roofing Corp 2nd ranked -Advanced Roofing, Inc. 3rd ranked -A-1 Property Services Group, Inc. Electrical 1st ranked -South Florida Electrical Consultant, Inc. 2nd ranked -AGC Electric, Inc. 3rd ranked - R&D Electric, Inc. 4th ranked - Edd Helms Electric, LLC The Administration will typically select a contractor for a project on a rotational basis to maintain equity among the awarded contractors. For unique projects requiring a specific competency, the requesting department may review contractor qualifications and recommend a specific contractor based on unique skills or experience. The JOC program will continue to provide a resource to expedite smaller, critical needs and General Obligation ("GO") Bond projects through competitively selected contractors that can be quickly deployed. After considering the submissions,the Evaluation Committee process,the lists of capital projects and GO Bond projects for which the JOC program is appropriate, it is recommended that the Administration be authorized to negotiate with following contractors in each category of work in order to establish a pool of prequalified JOC contractors for expediting future work. Roofing A&J Roofing Corp. Advanced Roofing, Inc. A-1 Property Services Group, Inc. Electrical South Florida Electrical Consultant, Inc. AGC Electric, Inc. R&D Electric, Inc. Page 36 of 1377 Edd Helms Electric, LLC Upon approval of this item, staff will negotiate with the recommended firms to establish the terms and conditions and the multiplier (i.e., overhead, insurance, and profit) that will be applied to the sum of all CTC tasks as a percent. As has been stated, the JOC program provides a competitively awarded process for expediting many projects as the contractors are preselected and can be quickly assigned a project without the need to issue a competitive solicitation every time a project is identified. For the contract that may result from this RFQ, the Administration anticipates that many of the capital renewal and replacement or priority projects will continue to be expedited through the JOC program. JOC was also helpful in completing a number of quick-win projects from the 2018 GO Bond. In addition, JOC is anticipated to be utilized on smaller projects (less than $2 million) that will need to be expedited as part of the GO Bond for Arts and Culture, including portions or repair/replacement projects at the Bass Museum, Miami City Ballet, The Colony Theater, the Miami Beach Botanical Garden, Art Deco Welcome Center, the North Beach Oceanfront Center (UNIDAD), and others. Any project with a value greater than $2 million will require approval of the Mayor and City Commission. FISCAL IMPACT STATEMENT The Administration will enter into negotiations with the selected contractors to include but not be limited to applicable contract provisions and the adjustment factors that will be applicable to each category of work. The City may equalize the adjustment factor amongst all contractors for similar categories. Notwithstanding the preceding, the City is in no way obligated to enter into a contract with the selected Proposer(s) in the event the parties are unable to negotiate a contract. During the term of the current agreement, the City has project task orders totaling approximately $7.4 million dollars, with an average project size of$309,000. However, the City anticipates that the volume of work pursuant to the JOC program will increase due to recent bond programs approved and as more projects require expediting, including resiliency projects. It is anticipated that the majority of projects issued under this RFQ will be valued below$2 million. Projects above $2 million will require prior approval by the Mayor and City Commission. Any task order for a project with a value of up to $2 million will continue to be included in the Procurement Report LTC issued monthly. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE)was published on: See BIE at: https:/lwww.miam ibeachfl.gov/city-hall/city-clerk/meeting-notices/ FINANCIAL INFORMATION CONCLUSION Page 37 of 1377 For the reasons stated herein, it is recommended that the Mayor and City Commission approve the Resolution authorizing the Administration to establish a pool of prequalified contractors, as set forth in Attachment A for the categories of roofing, and electrical construction; and further authorizing the City Manager and City Clerk to execute agreements with each of the foregoing proposers upon conclusion of successful negotiations providing that any task order for a specific project which is greater than $2 million be subject to prior approval by the Mayor and City Commission. Any task order for a project with a value of up to $2 million will continue to be reported to the City Commission monthly. Applicable Area Citywide Is this a "Residents Right to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Project? No No Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department Procurement Sponsor(s1 Co-sponsor(s) Condensed Title Award RFQ 2024-303-WG, Job Order Contracting (JOC)for Roofing/Electrical Construction Projects. FF/PR Page 38 of 1377 ATTACHMENT A Request for Qualifications(RFQ) No.2024-303-WG Job Order Contracting("JOC")for Roofing or Electrical Construction Projects Roofing Construction A&J Roofing Corp. Advanced Roofing, Inc. A-1 Property Services Group, Inc. Electrical Construction South Florida Electrical Consultant, Inc. AGC Electric, Inc. R&D Electric, Inc. Edd Helms Electric, LLC Page 39 of 1377 RS e Business Soluti1r .„:„„:„,,,,:%-.1;;;:,t,,,yr::‘,,„47:,.j 7.:1"L;i1- :7i.- .,,.i -;40: ,-,,20::5Zt.,.,,,: ,,.. .1,,Ip.,4":7",..,,,, ons C Methods and Techniques of IOC Implementation Presented by RSMeans Business Solutions Robert Gair,Principal Executive Summary Job Order Contracting UOC),is a general contracting method for the delivery of maintenance,upgrade and refurbishment services for buildngs.JOC greatly reduces the amount of estimating and bidding activities needed to precede the work,allows for quicker delivery,and helps foster long-term relationships between the client and the general contractor which are based on the quality delivery of services. JOC is philosophically similar to the design-build methodology that is used for"ground up" (e.g.,new buildings)facility construction.Construction professionals who are familiar with design-build should be comfortable with the use of JOC.JOC was developed in the early eighties by the U.S. Department of Defense to expedite the routine repair and maintenance of worldwide military facilities in order to decrease the inherent inefficiencies in traditional design-bid-build practices when applied to a large volume of small projects. From the experiences of those who have implemented it,the key to the successful application of JOC is to understand the fundamental methodology and its strengths and limitations.JOC is most successful when applied to the general contracting situations for which it was designed—a large number of repair, refurbishment and upgrade projects performed by a single contractor,or limited number of general contractors,under a fixed-price bid.The contractors are constantly evaluated on the quality of the work delivered. However,for either end of the contracting spectrum,ground up (new) or specialty(craft) contracting,JOC is not an optimal solution. Since JOC revolves around the use of a mutually accepted Unit Price Book(UPB)and estimating techniques, accurate and timely location construction data is critical.To this end,it is fundamental to the success of JOC that both parties understand the components of the JOC line-item estimates,and the workup of JOC estimates for any given scope of work. In this RSMeans Technical White Paper, we present a discussion of the findings of our interviews with construction executives who use JOC across a range of settings—from the general contractor's perspective,as well as that of the client,to private and public construction markets. Our discussions have shown that construction innovators on both sides of the table(client and contractor alike)are expanding the application of JOC—successfully modifying the original methodology to suit their needs,which are always centered around the quality delivery of a large number of simultaneous repair, refurbish and upgrade projects. Benefits in terms of quicker scheduling and completion,better quality work, better value over traditional design-bid-build methods,and higher end-user satisfaction are commonplace. Page 40 of 1377 Methods and Techniques of JOC Implementation JOC Utilization Among Various Industries In the school and municipal sectors,there appears to be growing adoption of the JOC methodology. The critical factor always seems to be the amount of experience and familiarity with JOC procedures. In some cases,state legislation can pose obstacles(having been written in an era of multiple bid,lowest price contracting,and without the awareness of the single-award,multiple-project nature of JOC),but in many states,the legislation is simply silent on the issue. Certain states (most notably,Texas,Arizona and Washington,to name a few)have embraced JOC as a contracting tool for state contracts. In certain cases, facilities engineering and construction managers who are ex-military have been hired and can bring the JOC methodologies into the organization. Another issue that is driving the adoption of JOC is reduced budgets.The budgets require owners to obtain more value for the construction dollar,and often,owners attempt to utilize in-house maintenance staffs for repair,renovation and refurbishment projects.In-house staffs may not be well-suited for these projects,and other maintenance duties are detracted from. All of these factors together tend to push organizations toward the adoption of JOC. The JOC approach dramatically cuts engineering,design,and contract procurement time by awarding long-term contracts for a wide variety of renovation, repair and minor construction jobs.JOCs typically are awarded with durations of 3 to 6 years.Annual volumes on specific JOCs can range from$1 million to$100 million. Typical average values are in the range of$50,000 to$5,000,000. The method of pricing under the terms of a JOC contract is a Unit Price Book(UPB)which has 40,000 to 60,000 line items organized in the Construction Specifications Institute's CSI Divisions. JOCs are usually awarded on the basis of a combination of the contractor's technical/management proposal and coefficient,with strong consideration given to the contractor's past performance on similar work. Many JOCs are awarded to contractors who do not submit the lowest coefficient,but rather have a superior technical/management proposal and demonstrate strong past performance. Using contract coefficients and the RSMeans UPB minimizes the potential for differences of opinion between the owner and contractor over pricing of the individual delivery orders.The owner's review of the contractor's proposal usually focuses on three basic issues: • Is the line item selected appropriate for the scope of the work? • Does the line item in the proposal reflect the correct quantity of work involved? • Is the proposal within the owner's budget? Current JOC Practices The implementation of JOC has expanded beyond its original methodology,and diverse practices that enhance the benefits of JOC(e.g.,substantial reductions in project bid-to-completion time,better value for the construction dollar,better contractor/client relationships,and high levels of end-user satisfaction with construction services for the owner)are noted. Size of Contractor— Orientation Toward JOC and Owner View Several construction services clients observed that JOC seems to be favored by medium-sized contractors(ranging from $20 million to$50 million in annual billings)who would typically have about 20%to 25%of their annual revenue in JOC awards.The contractors use this relatively predictable work to smooth out cash flow during the year. The contractor has to be of sufficient size and have a field supervisor on site,sometimes as a "working"supervisor.Typically,this would be a contracting firm with at least four or five field supervisors on staff. Conversely,this tends to limit the participation of the larger contractors,whom,the client respondents believe,tend not to assign the proper level of field supervision to the JOC contracts since they expect their field supervisors to oversee a larger size and scope of work for each project. Page 41 of 1377 • Methods and Techniques of JOC Implementation Advantages of JOC Contracting Successful implementation of JOC is dependent on knowledge, by both the contractor and the client,of the strengths and limitations of IOC and a keen understanding of the common language of estimating as expressed in the Unit Price Book—the key document that provides the mutually accepted basis for the JOC awards. The benefits of a well-administrated JOC program(involving both experienced clients and contractors)are well documented:increased construction dollar value,steady and profitable work for qualified contractors,and satisfied clients and end users. The procurement and contract process for each delivery order is greatly simplified because the owner does not need a complete engineering and design package and does not have to spend the time and money to advertise for public bids for each project.Also, the work is generally started more quickly. Few construction methodologies can match this menu of benefits for all parties involved. The owner has the benefit of using a contractor who is well qualified.Usually the contractor is required to submit a technical/management proposal that is evaluated to confirm capability and past performance.References on similar contracts are also carefully checked.These two factors,combined with the price proposal,are usually the basis for award of a JOC. In this way,long-term partnering relationships are fostered. Emergency and urgent projects can also be responsively accomplished. For facilities that have strict security requirements, the contractor will have a staff with security clearances that can perform the work without delay.JOC contracting is an effective means for government and institutional owners to accomplish construction work on existing facilities.When properly managed by both the owner and contractor,JOC provides responsive work at a fair price. JOC Services from. RSMeans Business Solutions • On-site consultation for JOC "best practices"and contracting methods • RSMeans JOC Unit Price Book for associated JOC.Costs and demolition lines • JOCWorks software for producing detailed cost estimates.and project management tasks • Training on cost estimating and development of the JOC coefficient Reed Construction 'Data/RSMeans • 63 Smiths Lane • Kingston, MA 02364 • 781-422-5101 RSMeans Reed Construction Data. Page 42 of 1377 g & 3-k/ k7r k¢ \7 g \i Aft & ƒ - 7~ \B er ■7.... / # § ¥ ' . o, ƒ/ mm§ , £—g 7 % ��� r , � � �7 \ . a ' es§g - Ranking . »se\ @ .=.t �--- 2 si Ranking 3 sGq§ k a. ; § ƒ ) 0 0 0 a / 3 � A � SaaE - Ranking 2 cO era c.c..\ $ 2' 2 #ate§ 'Ranking Ca aV _ f U. .= • . �_■� : r•-, Ranking «©� 7a � �_ Ranking ATTACHMENT C RFQ 2024-303-WG Job Order Contracting('JOC}for Electrical Martin Calcano et Elizabeth Estevez g Herman Fun a Pablo Gomez Rodney Perez c r E • Construcfion Projects c ` ' Aggregate . . . _. . _ rr ix rr Totals ix Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal Qualitative Quantitative Subtotal South Florida Electrical Consultant, Inc. 95 0 95 1 91 0 91 2 99 0 99 1 98 0 98 1 95 0 95 1 - 6 1 AGC Electric,Inc 95 0 95 _1 98 0 98 1 97 0 97 2 94 0 94 3 94 0 94 2- 9 2 R&D Electric,Inc. 90 0 90 3 89 0 89 3 85 0 85 4 95 0 95 2 86 0 86 3 15 3 Edd Helms Electric LLC 80 0 80 4 81 0 81 4 87 0 87 3 91 0 91 4 80 0 80 4 1 19 4 Quantitative Points Total Proposer Veteran's Quantitative Points (Cost+ Veteran's) AGC Electric,Inc 5 0 Edd Helms Electric LLC 5 0 R&D Electric,Inc. 5 0 South Florida Electrical Consultant, Inc. 5 0 rl-_._ AA _I I.1,,,