Transcript Project Overview

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LEARN HOW TO BID
JOB ORDER CONTRACTS (JOC)
CHRISTY GUZMAN
Assistant Manager, JOC Program
ALICIA MARTINEZ
Contract Administration Analyst, JOC Program
JOE DUTTER
JOC Specialist, JOC Program
April 2, 2014
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Overview of the JOC Program
Job Order Contracting or JOC is a pilot program enacted in 2003 by the CA State
legislature under Assembly Bill (AB) 14 to demonstrate an alternative and
optional procedure for bidding public works projects that is applicable only to
LAUSD. This Program was implemented by LAUSD in January 2005.
Since the Program’s inception, it evolved from a low bid to a best value contract
delivery method in January 2013 under AB 2580.
What is Job Order Contracting or JOC?
It is a contract delivery used to accomplish a large number of individual projects
under a single master contract awarded to the most qualified and prequalified
bidder who is licensed, bonded and general liability insured.
Contractors interested in participating in the JOC Request for Proposal (RFP)
process must meet the District's prequalification requirements and the specific
RFP’s minimum qualifications.
Reference: Assembly Bill 2580 and Public Contract Code 20919
Visit www.leginfo.ca.gov for statutes and legislative information.
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Overview of the JOC Program
Job Order Contracting (JOC) as a best-value contract delivery method
 JOC expedites the ordering process for construction repair and alteration work
including small new construction work.
 JOC eliminates the contracting complexities of the traditional bidding process.
 JOC uses The Gordian Group’s Construction Task Catalog (CTC) which contains
more than 180,000 construction line items from material, equipment, and labor to
demolition to installation. It is priced for the area of work and customized for each
program such as the WLAN Program as an example. It comes complete with
technical specifications.
 Bidder agrees to a fixed period, fixed unit price, and indefinite quantity contract
that provides for the use of job orders for public works or maintenance projects.
 Bidder bids an Adjustment Bid Factor (ABF) which is used as a multiplier against
CTC (i.e. 1.000 ABF x quantity x unit cost)
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Overview of the JOC Program
 Benefits of JOC
To the Owner: Benefits include the accelerated completion of projects, cost
savings, and reduction of construction contracting complexity
To the Contractor: Build/increase bond capacity through successful completion
of projects (performance based) and potential guaranteed work up to the
maximum value of the master JOC contract (per bond capacity)
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JOC Uses
 LAUSD considers JOC appropriate for minor new construction, renovations
and repairs, including but not limited to:
 Minor construction projects (under $1M)
 HVAC and Electrical
 Routine repairs, Emergency repairs, and Renovations
 Upgrades to ADA standards
 Site work and utilities
 Parks and playgrounds
 Upgrade landscaping
 Replace flooring
 Demolition
 Abatement of Hazardous Materials
 Completion of Work of a terminated or “take-over” contract
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AB 2580
 Work applies District-Wide. However, on specific programs such as the WLAN
Program, the District may choose to assign JOC Contractors per Region.
 The guaranteed minimum amount is $25,000 per Master Contract. The District
awards JOC master contracts based on contractor performance and ability to
increase bond capacity.
 The initial contract term is 1 year with two 1-year options for a maximum
contract period of 3 years.
 The initial value of the contract may be adjusted at any time up to a potential value
of $5M covering the first term of the contract and up to a potential maximum
value of $10M thereafter, as long as the prime contractor can bond for the
additional contract amount.
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AB 2580
 Contractor is responsible for requesting an update/increase of its Prequalification
rating based on its current approved bond capacity.
 A bid guarantee of $25,000 is required with each proposal submittal. Please refer
to Document 00 4313 – Bid Security Form.
 Payment and performance bonds: Each shall be for 100% of the initial contract
value
 The District will automatically increase or decrease the Adjustment Factor
annually up to the maximum legal term and limit of the contract based on the most
recent quarter’s California Consumer Price Index (CCPI).
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JOC Contract and Job Orders
Issue
“Master” Contract
• Job Order #4
cannot be issued
until capacity
Issue
Job Orders
increased per
Against
“Master” Contract
policy
JO #1
JO #2
JO #3
Extend/Increase $
“Master” Contract
Issue
Job Orders
Against
“Master” Contract
JO #4
• Contract
extensions must
be approved by
the District
JO #5
JO #6
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RFP REQUIREMENTS
 Prior to submittal of proposal, contractor must carefully examine the RFP Package for the
license, RFP criteria, bidding, and contracting requirements.
 Prospective bidders attend a mandatory pre-proposal meeting. Bidders must “sign-in”
on the pre-proposal meeting attendance sheet. Bidders will not be allowed to sign-in to
represent more than one (1) firm.
 Requests for Clarifications (RFC) found under the Supplementary Instructions to
Bidders (Section 00 2213) are due no later than the deadline set forth in each RFP
package, unless extended via Addendum issued by the District. Bidders must complete
Section 00 2213 Form, included in each RFP package and e-mail to
[email protected]. You may submit one form for the batch of RFP’s.
 Proposal due date is “specified per RFP, unless extended by Addendum issued by the
District. If you arrange for courier delivery, you are responsible for arranging for timely
delivery before the proposal due date and time.
 Immediately following the proposal submittal date, the District will post RFP participants’
names who submitted proposals on our website at http://www.laschools.org/newsite/bidding-opportunities/joc/resources.
 A “cone of silence” is in effect for a period of time while the District staff reviews and
evaluates proposals received. The timeframe for evaluation and selection process will
vary depending on the number of proposals received.
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RFP REQUIREMENTS
 The District expects Proposers who are successfully awarded a JOC contract, to maintain
one (1) contract (up to 2 max or depending on the size of each Program).
 If Proposer decides to participate in future JOC RFP’s and is awarded multiple JOC
contracts, Proposer commits to perform all assigned work District-Wide and be able to
increase bond capacity at any time as deemed necessary by the District.
 The District may at its sole option, refrain from issuing future Job Orders if Contractor
fails to perform pursuant to Article 15, Section 15.3 of the JOC General Conditions and
may exercise its right at any time, to initiate process to terminate contract for convenience
or for cause for failure to perform.
 The District shall receive and stamp sealed proposal submittals and accept only those that
were received from prequalified proposers prior to the specified deadline. The deadline to
submit PQ applications is specified in each RFP.
 Proposals received from non-prequalified proposers and those received and time-stamped
after the posted deadline will be returned.
 RFP participants’ firm names will be posted online within 48 hours of the RFP deadline at
http://www.laschools.org/new-site/bidding-opportunities/joc/resources. Award status will
be posted on this website as soon as an award determination is made.
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FACTORS USED IN
SELECTION PROCESS
 Bid Adjustment Factor
 Contractor’s Performance Score
 SBE Certification from the District or other Public
Agencies
 Public works construction contract references
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RFP CRITERIA
The District may consider data and experience records it maintains for all or some of its construction projects completed
by the Proposer for evaluation and selection purposes and in determining the most qualified and prequalified proposer.
SAMPLE RFP CRITERIA (THIS IS CUSTOMIZED PER SPECIALTY TRADE)
License: Proposer must have a valid and active “C-10” Electrical license Classification
Minimum Qualifications: Proposer must submit qualifying references based on the criteria below:
1. Within the last five (5) years, Proposer must have performed prime contract and/or subcontract work for the
installation of a Wireless Local Area Network (WLAN) or Local Area Network (LAN) each with a minimum
contract value of $250,000.00.
2. Contractors shall adequately demonstrate that they have the requirements in their respective
specialty in the following areas:
a. All low-voltage construction activities must be performed by a Contractor holding a C-7
Low Voltage Systems Contractor or a C10 - Electrical Contractor license classification.
b. All electrical construction activities must be performed by a Contractor or Subcontractor
holding a C-10 Electrical Contractor license.
3.
Proposer must provide verified contact information for validation purposes.
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RFP CRITERIA
Contractor Performance Score established pursuant to the District’s Prequalification Program
Field Component Scoring (50 Points): A Contractor Performance Evaluation and Safety Evaluation is used to
report the performance and safety of a contractor on LAUSD construction contracts. The Owner Authorized
Representative (OAR) for the contract coordinates with the Inspector of Record (IOR) and End User to complete
the evaluations, which are forwarded to the District’s Prequalification Unit for inclusion to a contractor’s file.
Compliance Component Scoring (50 Points): If Applicant has completed LAUSD construction contracts in the
past three (3) years, its compliance on the following criteria will be measured and scored.
1. Labor Compliance
2. Project Stabilization Agreement (PSA)
3. Bid Issues/Protests
Requests to be Released from Bid
Bid Protests on LAUSD bids that were without merit
Number of Substitution of Subcontractors requests that were denied or for which a penalty was
assessed
4. Assessments
Liquidated Damages assessed
Stop Notices
Permanent Withholds due to failure to complete punch list items or for stop notices that were
not released
Deductive Change Orders due to the Applicant’s failure to perform
5. Failure to comply with LAUSD contract Warranty requirements
For more information on the District’s evaluation criteria and scoring/rating system, please visit the
District’s website at http://www.laschools.org/new-site/prequalification/
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RFP CRITERIA
Small Business Enterprise (SBE): Proposer may submit proof of SBE certification by the District or other public
entities by submitting one of the following requirements.
If Proposer is SBE Certified, provide a copy of the SBE Certificate issued by the District or other
public agencies at the time of proposal submittal. Certifications, other than SBE, will not be
considered. The certification must be within 3 years of issuance date.
If Proposer is not SBE Certified and wishes to gain 5 bonus points, provide proof of an average SBE
participation of 25% on District projects completed within the last 3 years. Provide documentation or
proof of compliance. Subject to verification.
Proposer will receive a maximum score of five (5) bonus points if one (1) of the above SBE
requirement is met. The 5 bonus points will be added to the Contractor Performance Score as shown
below:
Contractor Performance Score:
SBE Certification or Proof of 25% Participation Goal:
Total Points
95
5
100
The points are converted to percent (%) format (100 points = 100%) for selection purposes.
The maximum potential score when combining the Contractor Performance Score and SBE score is 105 points or
105%.
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SELECTION PROCESS
SELECTION PROCESS
1. The selection and award will be based on the responsive proposals received and evaluated in accordance
with the minimum qualification requirements and criteria set forth in this RFP.
2. The District will determine the most qualified prequalified proposer as follows:
The Composite Adjustment Factor is the resultant factor derived from dividing the Adjustment Bid Factor by
the Contractor Performance Score and SBE Points as shown below.
Calculation of the Composite Adjustment Factor
The Adjustment Bid Factor is divided by the total Contractor Performance Score and SBE Points
calculated in percent format (i.e. 80 + 5 points = 85 or 85%) for evaluation, ranking, and selection
purposes as shown below.
Contractor Adjustment Bid Factor /(Performance Eval Score + SBE Points)
A
B
C
1.0000
0.9000
1.0000
90%
93%
100%
0
0
5
=
Composite Adjustment
Factor
1.1111 (Rank 3)
0.9677 (Rank 2)
0.9523 (Rank 1)
In the above example, Contractor C is determined to be the most qualified bidder, provided that all other
requirements and criteria of the RFP are met.
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JOC Project Initiation
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Joint Scope Meeting & RFP
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Proposal & Validation Process
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Award Phase
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Bond Requirements
 JOC Contracts: A $25,000 Bid Bond or Bid Guarantee is required at the
time of bid. Upon award of the Master Contract, Contractor must provide
100% Payment and Performance Bonds.
 Formal Contracts: A 10% Bid Bond is required on all “Formal”
competitively bid construction contracts
 Payment and Performance Bonds are required on “all” public works
projects in excess of $15,000.
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Get Prequalified
 Safety PQ - Informal (A/B Letter) Contracts
 Standard PQ - Formal & JOC Contracts
 Visit our PQ webpage at http://www.laschools.org/new-site/prequalification/forms
for more information.
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Labor Compliance Program
 Prevailing Wage
- It is a set of “minimum wages” that must be paid to workers on public works
projects
- Applies to contracts over $15,000 for
existing construction such as alteration, demolition, repair, maintenance, or
warranty work
- Applies to contracts over $25,000 for new construction or installation work
 Visit our website at www.laschools.org/contractor/lc for more information
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Project Stabilization Agreement (PSA)
 PSA is required on “all” JOC projects
 Goals and objectives are to prevent work stoppages or slowdowns,
encourage contracting with small businesses, hire local workers when
possible, provide a supply of skilled craft persons, establish a standard
dispute resolution process when matters do arise
 Visit our website at www.laschools.org/contractor/psa/ for more
information
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PROJECT STABILIZATION
AGREEMENT (PSA)
AB 2580 requires the primary job order contractor to provide public notice of available work
to be subcontracted by trade, and to notify the LAUSD of the subcontractor selected.
Requires the notification to:
A.
Include every subcontractor for all tiers and establish the authorized subcontractor
list for the job order. Prohibits the commencement of work prior to seven (7) days'
notice of the established subcontract list and any additions of any subcontractor to
the job order;
B.
Identify the scope of the work to be performed by each subcontractor to the job
order by craft. If a subcontractor performs multiple crafts, the job order contractor
shall identify the work of each craft to be performed; and,
C.
List any substitute subcontractors and the justification for the substitution, with
seven days' notice. Allows the LAUSD to request a hearing to evaluate the substitution
request, in accordance with the Subletting and Subcontracting Fair Practices Act (Act).
50% Local Hire is required under the PSA. Compliance subject to audit.
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PROJECT STABILIZATION
AGREEMENT (PSA)
1. AB 2580 specifies that Project Stabilization Agreement (PSA) compliance shall
constitute no more than three major violations on any LAUSD project within the
past three years. If the contractor has more than three violations, the LAUSD shall
seek administrative review of those violations. Violations include, but are not limited to the
following:
a. Failure to register core workers with the appropriate building trade union;
b. Failure to assign apprentices, as specified;
c. Failure to comply with job order contract terms, including contract amount thresholds,
contract duration limits, and notification requirements before work commences, as
specified; and,
d. Incorrect assignment of work in accordance with the LAUSD's PSA.
2. Requires a 7-day notification prior to start of work. Contractor will be responsible for
notifying the trades/unions prior to any work commencing. The District will be responsible
for monitoring compliance through LCP and PSA.
3. Requires that any job order changes be compliant with existing laws on allowable job order
change amount thresholds, as specified.
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REQUIRED SUBMITTALS
Please refer to the RFP requirements to ensure complete proposal document submittals per EXHIBIT
“F” Section 00 4113 (Required Bid Forms for Sealed Proposal Submittal)
Fill out and submit the following with your sealed bid:
1. Document 00 4100 - Bid and Acceptance Form (signature required)
2. Document 00 4313 - Bid Security Form (signatures required)
3. Document 00 4500 - Certification Requirements (signature required)
4. Document 00 4519 - Non-Collusion Affidavit (signature required)
5. Document 00 7351 - Subletting and Subcontracting Fair Practices Act List
6. Exhibit “A” – Certification of Proposal (signature required)
7. Exhibit “B” – General or Specialty Trade Experience (complete and sign)
Optional (5 bonus points added to Contractor Performance Score if submitted with each proposal):
1. Copy of current and valid SBE Certificate or provide an average SBE participation of
25% on all District projects completed within the last 3 years. Certificate must be
within 3 years of issuance date. http://www.laschools.org/new-site/small-business/
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Owner Controlled Insurance
Program (OCIP)
 It is a single insurance program that insures the District, the Board, all Enrolled
Contractors and Subcontractors, and other designated parties for Work
performed at the project site(s).
 Coverage under the OCIP includes Workers’ Compensation, Employer’s
Liability, General Liability, Excess Liability, Builders Risk, and Contractor’s
Pollution Liability Insurance
 Visit www.laschools.org/contractor/cc/ and look for OCIP under Document
Storage Areas for more information.
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OCIP cont’d…
 Contractors must maintain its standard operational insurance coverage – OCIP
only covers you on each contract awarded
 District pays the insurance premiums for the OCIP described in the OCIP
Manual
 Notify your insurance broker/agent of the coverage provided under OCIP to
avoid duplication of coverage.
 Each bidder is required to EXCLUDE from its bid price the cost of the OCIP
coverage provided by the District.
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Bidding Opportunities
 Formal & Master JOC Bids - Visit our website at
http://www.laschools.org/new-site/bidding-opportunities/
 Job Orders - visit our website at http://tools.egordian/rptResultList.aspx (for
subcontracting opportunities)
 Informal Bids - http://mo.laschools.org/fis/existing-facilities/m-ando/bidwalks/
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Bidding Opportunities
 Search for subcontracting and prime contracting opportunities
 Attend pre-bid meetings to meet District representatives, prime
contractors, subcontractors, labor union representatives, industry
experts, etc.
 Understand the District’s prequalification, bidding and contracting
requirements http://www.laschools.org/new-site/biddingopportunities/joc/resources
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Contractor Resources
All JOC RFP’s are subject to the following requirements in addition to
the RFP requirements:
1.
Assembly Bill (AB) 2580 and Public Contract Code (PCC) 20919 – legislation and
statutes are included in the RFP package http://leginfo.ca.gov/
2.
Prequalification Program
http://www.laschools.org/new-site/prequalification/
3.
Prevailing Wage / Labor Compliance Program (LCP)
http://www.laschools.org/new-site/labor-compliance/
4.
Project Stabilization Agreement (PSA)
http://www.laschools.org/new-site/project-stabilization/
5.
Small Business Enterprise (SBE)
http://www.laschools.org/new-site/small-business/
6.
Owner Controlled Insurance Program (OCIP) http://www.laschools.org/fcs/cc/pq/filestorage/?folder_id=1045824
7.
Contractor Bondworks Program
http://www.laschools.org/new-site/small-business/contractor-bondworks
8.
District’s technical specifications available online at
http://www.laschools.org/documents/?folder_id=219598873
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Contact Information
 FACILITIES CONTRACTS
333 S. Beaudry Avenue, 22nd Floor
Los Angeles, CA 90017
(213) 241-2651 (Prequalification Unit)
(213) 241-1188 (JOC Contracts Unit)
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LAUSD Expectations

HIRE AND TRAIN apprentices and make appropriate payments to apprentice
training trust.

HIRE a workforce for the project that reflects the ethnic diversity of Los
Angeles.

HIRE employees that conduct themselves in a professional manner around
students.

CONSTRUCT the project according to the plans and specifications.

COMPLETE the project within the contract time limits.

WE BUILD - The Board is committed to participation of local area residents in
its school construction and modernization programs. To identify trained and
skilled labor resources, please contact the "We Build" Program at (213) 2414990. This Program works directly with the Union Building Trades.
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Q&A
Thank you!
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