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County of San Diego
JOB ORDER CONTRACTING
Pre-Bid ConferenceContracts 203-211
January 30, 2015
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Pre-Bid Conference Agenda
• Explanation of JOC Concept
• County of San Diego’s JOC Program
• How to Bid a Job Order Contract
• How to Obtain a Bid Package
• All questions must be formally submitted as per the procedures outlined within the Bid Documents. Nothing discussed at the Pre-Bid meeting is binding unless it is addressed in writing via an addendum to the solicitation.
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC - Background
• Introduced In the United States in 1985 • DOD, USPS, NASA, GSA, HUD And Other Federal Agencies
• Over 1000 Job Order Contracts in Use
• Over $2 Billion of Construction Placed Annually
• Implemented by Major Cities, Counties, Schools• California State University System• University of California System• Los Angeles Unified School District• County of Los Angeles• SANDAG• United States Postal Service• Counties of Orange, Riverside, San Bernardino
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Introduction• Job Order Contracting Provides:
• A Way to Accomplish a Large Number of Individual Projects with a Single Firm, Fixed, Competitively Bid Contract
• On-call Contractors Ready to Perform a Series of Projects for Competitively Bid Prices
• Typical Mission for Job Order Contracting:• Small to Medium Sized Straightforward, Standalone Construction,
Renovation or Demolition Projects• Complete the Work of a Non-performing Contractor
Punch list Change orders Take Over Work for Defaulted Contractor
• Sensitive Projects No Time for Traditional Bidding or Drawn-out Negotiations High Priority
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Why JOC ?• Traditional Bid System can be Slow and Costly
• Months from Project Identification to Construction• Process Can Be Complicated• Adversarial Relationship Between the County and Contractor
• JOC Offers a Cost Effective Alternative to Traditional System
• Simplifies the Procurement Process• Faster Response – Days or Weeks instead of Months • Saves County 8 – 15% of Construction/Administrative Costs• Partnership Between the County and JOC Contractors
• JOC is Another Way for the County to Get Work Done in Addition to:
• In-House Work Force• Single Project, Lump Sum Bidding
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC - Why It Works
• JOC Is A Series Of Individual Small Projects
• Contractor Is Guaranteed Only a Minimum Amount of Work
• Contractor Has A Continuing Financial Incentive To Provide:
• Responsive Services• Quality Work• Lower Cost
• Future Job Orders Tied to Contractor Performance
• No Obligation To Award Specific Projects• The County can Use All Other Methods For
Accomplishing Projects
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC Contract Documents
• Construction Task Catalog®
• Technical Specifications
• New CSI Format: Section 01-43
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC Contract Documents• Construction Task Catalog (CTC)
• Pre-Priced Construction Tasks• Based on Local Labor, Material & Equipment Costs• Customized for County
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC Contract Documents
• Technical Specifications
• Quality of Materials and Workmanship
• Customized for County
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC Contract Documents• Project Manual
General InformationBid FormsBond FormsContractInsurance Requirements
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Gordian Resources at www.egordian.com
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC Internet Based Management Software
• Software Manages All Aspects Of The JOC Process Including:
• Project Initiation
• Cost Estimate
• Meetings
• Job Scope and Requests
• Contractors Proposal
• Subcontractor Utilization
• Proposal Review
• Administration
• Submittal Log
• Invoices
• Related Documents
• Evaluation
• Forms
• Management Reports
• Security
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Pre-Bid Guidance to Contractors
• Prior to Bidding the County Can Not:• Identify or Commit to any Specific Project or Location• Identify or Commit to any Specific Quantities or Tasks
• JOC has a Fixed Term• One Year
• No Guaranteed Minimum Value
• JOC has a Pre-established Maximum Contract Value
• For example, $4,200,000
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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County Program
• Filings and Permits• Most Projects do not require Permits• Contractor to Obtain Permits When Required • Fees paid to Government for all Permits Reimbursed
100%
• Liquidated Damages• Applied to all Job Orders
• Unforeseen Conditions• Treated as Additional Job Order
• Retainage• Based on individual Job Order• Released at Completion of Job Order
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Bid Requirements• Competitive Bid
• Must Bid Two Adjustment Factors - Normal Working Hours 6:00 am to
6:00 pm Monday - Friday
Other than Normal Working Hours 6:00 pm to 6:00 am Monday - Friday and all day Saturday, Sunday and Holidays.
• Same Adjustment Factors Apply to All Tasks in the CTC Must Include all Indirect Costs,
Overhead & Profit
• Lowest Composite Adjustment Factor From an Acceptable, Responsive, Responsible Bidder Wins!
2 WORK PERFORMEDAFTER NORMALWORKING HOURS
WORK PERFORMEDDURING NORMALWORKING HOURS
3 COMPOSITE WEIGHTING:
80% x NORMAL HOURS20% x AFTER NORMAL HOURS
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Current Bid Solicitations
$2M$2M$200KN/A1 year$2MSan Diego County
Flooring JOC 204
$4.2M$4.2M$420KN/A1 year$4.2MSan Diego County
General JOC 203
Pay.Bond
Perf.Bond
Bid BondOptionsTermMCVAreaTradeContract#
JOC 208
JOC 207
JOC 206
JOC 205
Mechanical
General
Electrical
General
San Diego County
San Diego County
San Diego County
San Diego County
$4.2M
$4.2M
$4.2M
$4.2M 1 year
1 year
1 year
1 year N/A
N/A
N/A
N/A
$420K
$420K
$420K
$420K
$4.2M
$4.2M
$4.2M
$4.2M $4.2M
$4.2M
$4.2M
$4.2M
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Current Bid Solicitations
$4.2M$4.2M$420KN/A1 year$4.2MSan Diego County
General EngineeringJOC 210
$2M$2M$200KN/A1 year$2MSan Diego County
Landscape JOC 209
Pay.Bond
Perf.Bond
Bid BondOptionsTermMCVAreaTradeContract#
JOC 211General Engineering
San Diego County $4.2M 1 year N/A $420K $4.2M $4.2M
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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JOC Execution Process
• Joint Scope Meeting• Develop Scope of Work
• Request for Proposal
• Contractor Develops Proposal• Selects Tasks and Quantities• Prepares Incidental Drawings &
Sketches• Develops Schedule • Prepares List of Subcontractor
• Contractor’s Proposal Reviewed and Approved
• Issue Lump Sum Job Order
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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BID CONSIDERATIONS
•Formula for Calculating the Job Order Value
•What is Included in the Adjustment Factor
•Understanding the Construction Task Catalog (CTC)
•Calculating the Adjustment Factor
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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ADJUSTMENT FACTOR
Formula for Calculating the Job Order Value*
* Non-prepriced Tasks are Calculated Separately
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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ADJUSTMENT FACTOR
•Two Adjustment Factors• 6am to 6pm Monday through Friday, except holidays• 6pm to 6am Monday through Friday, plus weekends
and holidays
• Includes Everything• Overhead, Profit, Bonds, Insurance• Scoping, Proposal Development and Review• All Administrative Paper Work• Obtaining Permits• Mobilization, Management, Clean-up• Supervision, Training, Quality Control, Etc.
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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CONTRACTOR STAFFING PLAN
• Staff To Match Volume• Must be Responsive to the County• Staff for Procedures
• Scoping• Proposal Development and Review• Supervising Construction
• Professionally Competent• Management Skills• Problem Solvers with People Skills• Team Members
• Must Be Able to Develop a Non-Adversarial Partnership with County Project Managers
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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UNDERSTANDING THE CTCGeneral Rules
Review Notes That Interpret the CTC• Unit Prices are for Complete and In-Place Construction
• Unit Prices Include Labor, Material and Equipment. Do Not Add Labor to Sidewalk Installation Task.
• Unit Prices Include the Cost of Delivery to Site, Unloading, Storage and Handling. Delivery Height is up to 2 ½ Stories
• Unit Prices Include Testing, Calibration, Balancing Etc. for New Work
• Unit Prices Include all Fasteners, Bolts, Anchors, Adhesives Etc. For New Work
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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UNDERSTANDING THE CTC
General Rules• Demo Price Includes Loading into Truck or Dumpster.• If Item Demolished as Part of Different Task, It will Not
Be Paid for Separately • Contractor Paid for Installed Quantities Only, No Waste• Assembly Prices take Precedence over Component Pricing• 14’ Working Height for All Work Except Masonry• 4’ Working Height for Masonry• Dumpsters are a Separate Item• Permits are Reimbursable at 100%
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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UNDERSTANDING THE CTC
Contractors Never Get Paid Separately For:• Moving and Returning Furniture. For Example, Moving
Office Furniture to Paint• Labor for Protecting Work in Place. For Example, a
Laborer to Stay After a Concrete Pour• Minor Barricades and Signage. For Example, Traffic
Cones and Orange Tape Around a Concrete Pour• Gang Boxes, Storage Containers• Portable Toilet, Field Office, Field Office Equipment
for Contractors’ Use• Layout, Site Engineering for the Work Itself• Administrative Vehicles
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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METHODS TO CALULATE AF
Use Historical Project Data• Select a Project which was Successfully
completed by your company that was completed by other means.
• You Know Scope and Direct Costs• Price Project From CTC• Add on Overhead and Profit
• Calculate the Adjustment Factor
Create a Representative Project• Create a Scope of Work• Get Sub Quotes or Estimate Cost• Price Project From CTC• Add on Overhead and Profit • Calculate the Adjustment Factor
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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PROJECT SCOPE
Renovation of a Classroom• Replace VCT• Replace Chalkboard on Front
Wall with Dry Marker Board• Replace 2 Doors and Hardware
• F84 Class 1 Lockset• LCN 4000 Series Closer• Glynn Johnson Stop
• Skim Coat Ceiling• Prime and Paint Ceiling and All
Walls• Install 1 Air Conditioner
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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BUILDING THE PRICE PROPOSAL
Section Mod Description UOM Price Qty Subtotal Total VCT Tile 03920 2021 Patch Floors, Cementitious Material SF $2.23 50 $111.50
09650 3111 Demo Vinyl Composition Tile SF $0.39 896 $394.44
09650 3111 Vinyl Composition Tile SF $1.25 896 $1120.00
09650 3111 1114 Add for Extra Stock SF $0.77 45 $34.65
09650 3121 Demo Base LF $0.39 120 $46.80
09650 1211 Vinyl Base LF $1.31 120 $157.20
09650 3127 Premoded Corners EA $1.67 4 $6.68 $1826.27
DryMarker Board 10415 1008 Demo Chalkboard, 1/4” thick SF $0.78 72 $56.16
10415 1002 DryMarker Board SF $14.93 72 $1074.96 $1131.12
Door and Hardware 01510 2010 4 CY Dumpster EA $173.00 1 $173.00
08210 3414 Demo 3’x 7’x 1-3/4” Door EA $10.00 2 $20.00
08210 3414 3’x 7’x 1-3/4” Door EA $121.09 2 $242.18
08210 3414 3484 For Solid Wood Stave Core add EA $25.27 2 $50.54
08210 3414 3499 For 1-1/2 hour Fire rated add EA $121.32 2 $242.64
08210 4103 Wired vision glass & frame SI $0.48 200 $96.00
08710 6414 Classroom Lockset, F84 EA $154.49 2 $308.98
08710 5103 Heavy duty door closer EA $191.91 2 $383.82
08710 2328 Heavy duty door stop EA $164.54 2 $329.08 09930 3304 Varnish Wood Doors EA $26.70 4 $106.80 $1953.04
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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BUILDING THE PRICE PROPOSAL
Section Mod Description UOM Price Qty Subtotal Total Paint and Plaster
09201 3001 One coat skim coat Plaster SF $0.30 896 $268.80
09201 3001 1101 Plaster Weld SF $0.03 896 $26.88
09201 3001 1102 Add for ceiling SF $0.03 896 $26.88
09201 3001 4012 Quantity Discount SF -$0.02 896 -$17.92
09920 2304 Prime Ceiling SF $0.19 896 $170.24
09920 2306 Paint Ceiling, 2 coats SF $0.35 896 $313.60
09920 1415 Prime walls SF $0.16 1378 $220.48
09920 1417 Paint walls, 2 coat paints SF $0.34 1378 $468.52 $1477.48
Air Conditioner
15770 6208 24,000 BTU Window A/C EA $706.24 1 $706.24
15770 6901 Aluminum A/C Bracket EA $211.23 1 $211.23 $917.47
Total $7,305.38
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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• Price from CTC– VCT $ 1,826.27– Dry Marker Board $ 1,131.12– Doors and Hardware $ 1,953.04– Paint and Plaster $ 1,477.48– Air Conditioner $ 917.47– TOTAL = $ 7,305.38
• Cost of Work (from quotes or estimate)– VCT $ 2,100.00– Dry Marker Board $ 995.00– Doors and Hardware $ 2,100.00– Paint and Plaster $ 1,600.00– Air Conditioner $ 800.00– TOTAL = $ 7,595.00
COMPARING QUOTES AND CTC
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OVERHEAD COSTS
Overhead 8% - 12%• Job Order Development
• Joint Scope Meetings • Develop Detailed Scope of Work• Build Proposal
• Subcontractor Buy-out• Site Supervision and management• Bonds• Insurance• Vehicles• Home Office Support• Communications• Incidental Design Services
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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PUTTING IT ALL TOGETHER• Cost of Work
• In-House + Sub Prices = $ 7,595.00
• Mark-up • Overhead @ 10% = $ 759.50• Profit @ 10% = $ 835.45
• Total $ 9,189.95
• Price from CTC $ 7,305.38
$7,305.38 x (Adjustment Factor) = $9,189.95Adjustment Factor = $9,189.95 / $7,305.38 Adjustment Factor = 1.2580
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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BID CONSIDERATIONS
Contractors Should Expect To:
• Prepare Incidental Drawings or Sketches for Some Projects
• Required for Approval by the County
• Required to Analyze Proposal
• Prepare Proposals for Some Projects That Will be Canceled
• Lose Money on Some CTC Items
• Lose Money on Some Projects
• Experience a Long Lead Time Before Receiving a Positive Cash Flow
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ESCALATION
•CTC Prices are Good for the Life of the Contract
•What About Changes in Prices
• Labor
• Equipment
• Materials
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RISKS OF LOW AF
•A Low Adjustment Factor• Leads to Arguments in Proposal Review
• Inappropriate Tasks• Exaggerated Quantities
• Leads to Delays in Job Order Development
• Takes Longer to Review Proposals
•Creates an Adversarial Relationship• Reduced Volume of Work
• Lost Profitability
•No Change Orders to Improve the Margin
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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REVIEW / KEY POINTS
• Understand How to Price Projects from CTC
• Know the Value of CTC
• Evaluate Risk of an Unrealistically Low Bid
• JOC is a Long Term Relationship
• Volume Driven by the Contractor• Put the Right Staff in Place
• Good Defendable Proposals
• High Quality Construction
• Timely Completion
• Meeting County Expectations
• Solve Problems, Do Not Create Them
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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Bid Opening ScheduleSealed bids will be received at the County of San Diego, Purchasing
and Contracting (032), 5560 Overland Ave., Suite 270, San Diego, CA, at the following times and dates:
JOC 203 General Contracting at 2:00pm, February 17, 2015
JOC 205 General Contracting at 2:00pm, February 17, 2015
JOC 210 General Engineering at 2:00pm, February 19, 2015
JOC 211 General Engineering at 2:00pm, February 19, 2015
JOC 204 Flooring at 2:00pm, February 24, 2015
JOC 209 Landscape at 2:00pm, February 24, 2015
JOC 206 Electrical at 2:00pm, February 26, 2015
JOC 208 Mechanical at 2:00pm, February 26, 2015
JOC 207 General Contracting at 2:00pm, March 3, 2015
Copyright © 2003 The Gordian Group, Inc. all rights reserved
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How to Obtain a Bid Package Bid documents, including Construction Task
Catalog®, Specifications and Bid Forms are available to be downloaded free of charge from the Department of Purchasing and Contracting BuyNet website at: http://buynet.sdcounty.ca.gov.
Contact information as follows: Kristen Hill, Procurement Contracting Officer, Telephone (858) 505-6360, Email: [email protected]
All Questions must be submitted in writing for consideration of an addendum. Email all questions to Kristen Hill (PCO).