JOB ORDER CONTRACT –
JOC 16-037, JOC 16-038 AND JOC 16-039
FOR FACILITIES – MINOR CAPITAL OUTLAY PROJECTS
MANDATORY PRE-BID CONFERENCE
10:30 a.m., Wednesday, February 3, 2016
California Polytechnic State University
San Luis Obispo
THIS IS THE START OF THE
MANDATORY FIRST PRE-BID
CONFERENCE. MAKE SURE YOU
SIGN THE ATTENDANCE SHEET OR
YOU WILL NOT BE ELIGIBLE TO BID.
INTRODUCTIONS
Cal Poly Assoc. Director of Minor Projects:
• Michael Brennan mgbrenna@calpoly.edu
JOC Bid Coordinator:
• Tina Flack cflack@calpoly.edu
Cal Poly Strategic Business Support Services/Contracts & Procurement:
• Michele Winterfeldt mwinterf@calpoly.edu
Gordian Group:
• Tyler Benson t.benson@thegordiangroup.com
Contractors
Other Attendees
GENERAL (TINA)
Information for Contractors Bidding (handout)
• JOC 16-037 (max $3 million)
• JOC 16-038 (max $3 million)
• JOC 16-039 (max $1 million)
Prequalification Requirements
• Must be prequalified with the Trustees; register and log in to “PlanetBids”
• http://www.calstate.edu/cpdc/cm/contractor_prequal_bidders.shtml
• Online application must be submitted and received at least 10 business days
prior to the date for opening bids and be approved not less than one business
day prior (CGC Article 2.02).
• Available prequalification rating 100% of maximum amount of the Job Order
Contract
• Refer to CSU website for more information
GENERAL (TINA / MICHAEL)
Supplementary Prequalification Requirements (Form 703.11-JOC)
• JOC 16-037 and JOC 16-038 (max $3mill)
• Five (5) public works projects in California performed concurrently and completed in
past five (5) years, each minimum $200,000
• Completed one (1) public works JOC in California in past five (5) years, actual amount
of at least 80% of the max possible contract value and not less than $2 million
• JOC 16-039 (max $1mill)
• Five (5) projects in California performed concurrently and completed in past five (5)
years, each minimum $200,000, at least one (1) for public agency
• May not have a current Job Order Contract or intent to award a Job Order Contract
with Cal Poly, San Luis Obispo
• Request form 703.11-JOC from Bid Coordinator (cflack@calpoly.edu)
• Submit form at least 10 business days prior to the date for opening bids to the
Prequalification Coordinator at the CSU Chancellor’s Office
• Project specific Prequalification Letter
GENERAL (TINA)
Information regarding Certified Payroll and requirements for
Prevailing Wage Rates
• Refer to Contract General Conditions Article 4.01 Laws to be Observed--
Generally, Article 4.02 Laws to be Observed--Regarding Labor,
Supplementary General Conditions & Special Conditions.
• This is a public works project, subject to prevailing wage rate laws.
• Public Works Contractor Registration
• All contractors and all tiers of subcontractors bidding on this project shall register
to bid public works projects with the DIR, and maintain current this registration
pursuant to Labor Code Section 1725.5
• http://www.dir.ca.gov/Public-Works/PublicWorks.html
• Contracting parties subject to examination and audit at any time during
construction and for a period of 3 years after final payment, includes access to
Contractor and subcontractor accounting records.
GENERAL (TINA)
Information regarding Certified Payroll and requirements for
Prevailing Wage Rates (continued)
• Contractor shall monitor its subcontractors’ compliance with the prevailing
wage law.
• Contractor and subcontractors shall keep accurate payroll record in
accordance with Division of Labor Standards Enforcement – upon written
notice, Contractor file with requesting entity a certified copy of payroll records
within 10 days; subject to penalties.
• Submit minimum 1
st
week’s CPR for contractor and all subcontractors for each
job order.
• Supplementary General Conditions, Item 29 – Department of Industrial
Relations determinations
• http://www.dir.ca.gov/dlsr/DPreWageDetermination.htm
GENERAL (MICHELE)
Insurance and Bond Requirements
• Bid Security – $25,000 (CGC Article 2.05.C)
• Payment & Performance Bonds – Equal to 100% of awarded contract price
(CGC Article 3.03)
• Insurance – due 10 days after agreement is delivered to Contractor, including
Haz Mat sub-contractor (CGC and SGC Article 4.06)
SB/DVBE Brief Overview
• CA Certified Small Business Advantage – 5% up to $50,000 max (CGC and
SGC Article 2.10)
• Preference for Non-Small Businesses – For a non-small business to receive
preference must commit to subcontracting at least 25% of the total aggregate
dollar value of all Job Orders under the Contract to California Certified Small
Business or Microbusiness.
GENERAL (MICHELE)
SB/DVBE Brief Overview (continued)
• DVBE – Mandatory 3% participation for Disabled Veteran Business Enterprises
(SGC Article 2.12 and CGC Article 5.05-E)
• Required documentation: DVBE Compliance Form (DVBE-C), DVBE Transmittal
Form, Summary of DVBE Participation (Attachment 1), Bidder’s Certification
(Attachment 2), DVBE Declaration STD 843
• DVBE Bid Incentive
• SGC Article 2.12
• Exceed 3% DVBE participation requirement
• http://www.bidsync.com/DPXBisCASB
• http://www.dgs.ca.gov/pd/Programs/OSDS/GetCertified.aspx
DVBE Participation Incentive
3.00% to 3.99% None
4.00% to 4.99% 1%
5.00% to 5.99% 2%
6% or more 3%
GENERAL (MICHAEL)
Hazardous Materials: Mold
• Gordian Task Book, CSI Division 02 80 Facility Remediation, 02 85 Mold Remediation
Hazardous Materials: Asbestos/Lead
• Effective January 1, 2015, CSLB Classification C-22 – Asbestos Abatement Contractor
Emergency Changes
• Contract General Conditions 6.11 and 7.02
Professional Services
• Architecture and Engineering
Division One
Environmental Requirements
• Contract General Conditions 4.03
Construction Waste and Recycling
• Division One, Section 01505, Construction Waste Management
• Diversion Goals, Reporting, Sample Forms
SOME SPECIAL CONDITIONS (MICHAEL)
JOC 16-037 and JOC 16-038
• Minimum Value of the Contract - $50,000
• Maximum Value of the Contract - $3,000,000
JOC 16-039
• Minimum Value of the Contract - $25,000
• Maximum Value of the Contract - $1,000,000
Minimum Value of individual Job Orders - No minimum
Maximum Value of individual Job Orders –
currently at $634,000
• SUAM definition of Minor Capital Outlay or less
Maximum Duration of the contract – 365 Calendar Days
Liquidated Damages – Contract General Conditions 8.02
SOME SPECIAL CONDITIONS (MICHAEL)
Adjustment Factors
CAMPUS WORK (excluding Marine Science Education and Research Center (Pier))
• 1. Daytime 7:00 am to 5:30 pm Monday through Saturday **
• 2. Nighttime 5:31 pm to 6:59 am Monday through Saturday
• 3. Premium time Sunday and legal holidays
PIER WORK
• 4. Daytime 7:00 am to 5:30 pm Monday through Saturday
• 5. Nighttime 5:31 pm to 6:59 am Monday through Saturday
• 6. Premium time Sunday and legal holidays
** The CAMPUS WORK Daytime factor SHALL be equal to or lower than
all other adjustment factors.
SOME SPECIAL CONDITIONS (MICHAEL)
Adjustment Factors – IMPORTANT
Review the CTC (Construction Task Catalog)
Understand the CTC
Know what to expect from your adjustment factor
EXAMPLE (MICHAEL)
HANG TWO METAL FRAMES, HINGES & METAL DOOR
*Generally included in CTC prices:
Labor – prevailing wage
Equipment
Materials
Delivery
Unloading
Moving materials
Home office (overhead)
Insurance
Bonds
Project meetings
Management
Supervision
Mobilization
Project close out
Project office, staff & equipment
Tax
Contractor
Price
1.00* 0.85* 0.70*
Frame 08 12 13 13
0065
$296.70 $373.60 $317.56 $261.52
Door 08 13 13 13
0021
$320.35 $556.24 $472.80 $389.37
Hinges 08 71 16 00
0037
$62.57 $64.71 $55.00 $45.28
Subtotal $679.62 $994.55 $845.36 $696.17
Labor 2.5 hrs $126.85 incl. incl. incl.
10% Overhead $80.65 incl. incl. incl.
Total $887.12 $994.55 $845.36 $696.17
TYPES OF PROJECTS THAT HAVE
BEEN DONE IN THE PAST
(MICHAEL)
Seal cracks in parking structure
Painting projects
Removal of walls
Install new door in existing walls
Roof repairs
Electrical work
Concrete work
Lead and asbestos work in almost everything
HVAC work
Complete renovation of classrooms and lab spaces
THE GORDIAN GROUP
PRESENTATION
Tyler Benson, Account Manager
The Gordian Group
JOB ORDER CONTRACTING
BID NO. JOC 16-037
BID NO. JOC 16-038
BID NO. JOC 16-039
FOR FACILITIES - MINOR CAPITAL OUTLAY PROJECTS
Pre-Bid Meeting: February 3, 2016 @ 10:30AM
Facilities Bldg. 70, Room 110, Cal Poly, San Luis Obispo
PRE-BID MEETING AGENDA
• JOC Overview
• JOC Contract Documents
• JOC Process
• Solicitation Details
• Understanding the Construction Task Catalog
®
(CTC)
• Calculating the Bid
• Contractor Adjustment Factors
• Bid Considerations & Review
• Risk of Low Adjustment Factors
• Review/Keypoints
20
JOC OVERVIEW
• A Job Order Contract Is a Firm, Fixed Priced, Competitively Bid, Indefinite
Quantity Contract
– JOC Is Designed to Accomplish Small-medium Size, Multi-trade, Minor
Construction, Repair and Remodel Projects
– JOC Is a Series of Individual Projects Issued As Job Orders Under the
Base Contract
– A Fundamentally Different Construction Procurement Relationship
• Performance-Based Contract
• Non-adversarial relationship between Owner & Contractor
• JOC Introduced in the United States in 1985
– Dept. of Defense, USPS, NASA, etc.
• Implemented by states, counties, cities, universities, housing authorities, etc.
since 1990
• Hundreds of contracts currently in use
• Over $1.4 Billion in construction placed annually through Gordian JOC
systems
21
JOC IS AN UMBRELLA CONTRACT
22
JOC OVERVIEW – CONTRACTOR
BENEFITS
23
Why JOC Works for Contractors
– Good work is rewarded with more work
• Profit is a function of volume
• Volume is driven by performance
• JOC provides a steady flow of work
• Do not have to chase the next project
– Long-term relationship with the CSU Cal Poly
• Develop partnership with the CSU Cal Poly
– Reduced Risk
• Payment for every element of work performed
• Ability to provide input during scope development
JOC OVERVIEW
• Why JOC Works for CSU Cal Poly
• A Fixed Priced, Fast Track Procurement Process
– Job Orders are Lump Sum
– The Ability to Accomplish a Substantial Number of Individual Projects
with a Single Competitively Bid Contract
– On-Call Contractors Ready to Perform a Series of Projects at Different
Locations for Competitively Bid Prices
– Contractor Has A Continuing Financial Incentive To Provide
• Responsive Services
• Accurate Proposals
• Quality Work on Time
• Timely Close Out
– Future Purchase Orders Tied to Contractor Performance
• No Obligation To Award Specific Projects
• CSU Cal Poly Can Use All Other Methods For Accomplishing
Projects
24
JOC CONTRACT DOCUMENTS
• Front End Documents
• Construction Task Catalog
®
• Technical Specifications
25
JOC PROCESS – HOW IS JOC BID?
• Award Based on Competitive Bid
– Must Bid 6 Adjustment Factors (AF)
• Campus Work (3 Adjustment Factors)
– Daytime Working Hours: 7:00 am to 5:30 pm Monday to Saturday**
– Nighttime Working Hours: 5:31 pm to 6:59 am Monday to Saturday
– Premium Working Hours: Midnight to 11:59 pm Sundays and legal
holidays
• Pier Work (3 Adjustment Factors)
– Daytime Working Hours: 7:00 am to 5:30 pm Monday to Saturday
– Nighttime Working Hours: 5:31 pm to 6:59 am Monday to Saturday
– Premium Working Hours: Midnight to 11:59 pm Sundays and legal
holidays
– Adjustment Factors Apply to All Tasks in the CTC
– Each Adjustment Factor is Weighted to Create an Award Criteria Figure
– Lowest Award Criteria Figure From a Responsive, Responsible Bidder Wins!
– **NOTE: Campus Daytime Working Hours AF shall be equal to or lower than
all other adjustment factors
26
PROCESS - HOW IS WORK DONE?
• Joint Scope Meeting With the CSU Cal Poly, Contractor, and Others to
define the Detailed Scope of Work
• The CSU Cal Poly Issues Request for Proposal for the Agreed Upon
Detailed Scope of Work
• Proposal Development
– Typical Proposal Due Date will be 2 weeks from RFP
• Proposal Review
• Issuance of Job Order
• Total Time Goal: Average 3-5 weeks
27
SOLICITATION DETAILS
• Prior to Bidding the CSU Cal Poly Cannot
– Identify or Commit to any Specific Project or Location
– Identify or Commit to any Specific CTC Tasks or Quantities
28
Contract Contract Type
Maximum
Contract
Duration
(Years)
Minimum
Contract
Value
Maximum Not-
to-Exceed
Contract
Value
Payment
&
Performance
Bonding
(Each)
Bid Security
JOC 16-037
General
Construction, B
1
$50,000
$3,000,000 $3,000,000
$25,000
JOC 16-038
General
Construction, B
1
$50,000
$3,000,000 $3,000,000
$25,000
JOC 16-039
General
Construction, B
1 $25,000 $1,000,000 $1,000,000 $25,000
SOLICITATION DETAILS
• Differing Site Conditions or Changes in Scope
– Priced from Construction Task Catalog
®
– Supplemental Job Order
– No Negotiated Change Orders
• Filings and Permits
– Fees paid for all Permits reimbursed 100% - No Markup
• Liquidated Damages
– On a Job Order - by - Job Order basis
– Sliding Scale Based on Job Order Value
29
EGORDIAN
®
SOFTWARE ACCESS
• Access to eGordian
®
, Construction Task Catalog
®
, other proprietary
materials
– Most advanced technology and data in the marketplace.
– Paperless
– Efficient
– Tasks and prices input directly... no fishing through old files and
estimating books for costs
• JOC process training
• eGordian software training
• 24-hour support software support.
30
UNDERSTANDING THE
CONSTRUCTION TASK CATALOG
®
• Contractor must review and
understand “Using the
Construction Task Catalog
®
”
• Rules of the game
• Make sure you get paid for all
appropriate tasks
• Pages 00 – 1 to 00-8 of the CTC
• The Unit Prices Include
– Complete and In-place
Construction
– The Adjustment Factors Include:
Overhead, Profit, Sub Costs,
Taxes, Fringe Benefits, Financing,
Business Risk
– Construction Related Costs:
Permit Services, Submittal
Preparation, Incidental A&E,
Vehicles, Temporary Utilities,
Excess Waste,, Daily & Final
Clean-up, Etc.
31
NON PRE-PRICED TASKS
• Contractor must have permission from the CSU Cal Poly to use a Non Pre-
priced Task prior to submission
• Three (3) Quotes on vendors’ or subcontractors’ letterhead
• Justification for less than three (3) Quotes
• The final price submitted for non pre-priced tasks shall be according to the
following formula:
• Contractor Performed Duties
– A = Direct labor cost and fringe benefits per prevailing wage rates
– B = Direct material costs (supported by quotes)
– C = Direct equipment costs (supported by equipment amortization data)
– D = Allowable overhead costs = A x 55% (this includes Worker’s
Compensation insurance)
– E = Allowable profit = (A + B + C) x 10%
(Continued on the next slide)
32
NON PRE-PRICED TASKS CONTINUED
• Subcontractor Performed Duties
– G = Contractor’s allowance for subcontractor cost = F x 5%
– H = Contractor’s overhead for subcontractor cost in accordance with
the following schedule:
• F x 0% for NPP tasks < 10% of total Work Order Value
• F x 7% for NPP tasks 10-20% of total Work Order Value
• F x 10% for NPP tasks > 20% of total Work Order Value
• Total Cost of Non Pre-Priced Task = A + B + C + D + E + F + G + H
33
METHODS TO CALCULATE BID –
ADJUSTMENT FACTORS
Recommended Method
• Use Historical Project Data
– Select a Completed Project
• You Know Scope and
Direct Costs
– Price Project From CTC
– Add on Overhead and Profit
– Calculate the Adjustment
Factor
Alternative Method
• 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
34
SAMPLE PROJECT -
DETAILED SCOPE OF WORK
• Dormitory Renovation
– Doors and Hardware
• Replace 12 interior doors, hinges and hardware
• Doors shall be 3x7, solid core wood doors
• Grade 2 locksets with knobs
• Replace 2 push bar exist devices and door closers on exit doors
– Interior Lighting
• Replace all lay-in troffer fixtures on first and second floors. 48 in total
• Replace 4 exit fixtures
• Replace 12 industrial fixtures in shop area
– Plumbing Fixtures
• Replace 8 bathroom sinks, 8 faucets, and 8 toilets in men’s and women’s bathroom
in admin building and shop area
• Replace 4 water fountains
– Replace Boiler
• Demo existing boiler and as much piping and venting to accommodate new boiler.
Install a new 1028 mbh oil fired cast iron boiler. Weil-McLain Model 88. No access
for packaged boiler. Must field assemble sections. Provide new piping as required.
– Normal Working Hours Apply
35
SAMPLE PROJECT –
CTC PRICE VS. QUOTES
Direct Cost of Work from
CTC
• Replace Boiler $ 48,911.43
• Doors and Hardware $ 9,748.46
• Lighting $ 15,845.00
• Plumbing $ 14,986.76
TOTAL = $ 89,491.65
Direct Cost of Work from
Quotes or Estimates
• Replace Boiler $ 47,500.00
• Doors and Hardware $ 9,250.00
• Lighting $ 16,750.00
• Plumbing $ 12,500.00
TOTAL = $ 89,000.00
36
SAMPLE PROJECT –
PUTTING IT ALL TOGETHER
A. Direct Cost of Work from Quotes $89,000.00
B. Overhead 10%* $ 8,900.00
C. Subtotal (Cost & O/H) $97,900.00
D. Profit 10%* $ 9,790.00
E. Subtotal (Cost & O/H & Profit) $107,690.00
F. Price From CTC $89,491.65
Adjustment Factor (= E / F) = 1.2034
*Sample Only. Contractor to determine O/H & Profit.
Prepare this calculation for more than one sample project.
37
FILLING OUT THE BID FORM
1 . 2 0 3 4
1 . 2 5 0 0
1 . 2 9 0 0
* Sample only
38
AWARD FORMULA
Line 1. Daytime Campus Working Hours Adjustment Factor 1. 1.2034
Line 2. Multiply Line 1 by (90) % 2. 1.0831
Line 3. Night Time Campus Working Hours Adjustment Factor 3. 1.2500
Line 4. Multiply Line 3 by (5) % 4. 0.0625
Line 5. Premium Campus Working Hours Adjustment Factor 5. 1.2900
Line 6. Multiply Line 5 by (3) % 6. 0.0387
Line 7. Daytime Pier Working Hours Adjustment Factor 7. 1.3000
Line 8. Multiply Line 7 by (1) % 8. 0.0130
Line 9. Night Time Pier Working Hours Adjustment Factor 9. 1.3500
Line 10. Multiply Line 9 by (.5) % 10. 0.0068
Line 11. Premium Pier Working Hours Adjustment Factor 11. 1.4000
Line 12. Multiply Line 11 by (.5) % 12. 0.0070
Line 13. Add Lines 2, 4, 6, 8, 10, 12 (weighted, composite bid) 13. 1.2111
FILLING OUT THE BID FORM
39
* Sample only
BID CONSIDERATIONS
• Contractors Should Expect To
– Prepare incidental drawings or sketches for some projects
• Justify Quantity Calculations
• Explain Detail of Work
– Prepare proposals for some projects that may be canceled
– Margins on CTC tasks vary
– Some projects are more profitable than others
– Maintain a fully functioning office
– Maintain a fully functioning staff
– Hold required licenses
– Meet participation goals
40
CONTRACTOR ADJUSTMENT FACTOR
• Importance of Adjustment Factors
– Determines winning bidder AND
– Used to price individual Job Orders
– Price proposal total becomes the lump sum Job Order amount
41
RISKS OF LOW ADJUSTMENT FACTOR
• Leads to Arguments in Proposal Review
– Unsupportable Tasks
– Exaggerated Quantities
• Leads to Delays in Job Order Development
– Takes Longer to Review Proposals
• Creates an Adversarial Relationship
– Reduced Volume of Work
– Will Shorten Contract
– Lost Profitability
• No Second Chance to Improve Margin
42
REVIEW / KEY POINTS
• Focus on Total Potential Value of Contract
– Maximum Contract Value
– Evaluate Construction Task Catalog
®
– Analyze Unit Prices
– Know the General Guidelines for Using the CTC
• Contractor Performance Drives Volume
– Responsive Service
– Accurate Proposals
– Safe and Clean Project Sites
– High Quality Construction
– On-Time Completion
– On-Time Close Out
43
IMPORTANT REMINDERS (TINA)
Prequalification
• Deadline to submit online application on “PlanetBids” and submit forms to CSU
Chancellor’s Office:
• Tuesday, February 9, 2016 (JOC 16-037 and JOC 16-038)
• Wednesday, March 9, 2016 (JOC 16-039)
Obtaining Bid Proposal Packages
• Must submit written request specifying project number via fax or email along
with copy of prequalification letter from the Chancellor’s Office
Asking Questions
• Deadline to ask questions 5:00 pm
• Friday, February 12, 2016 (JOC 16-037 and JOC 16-038)
• Friday, March 11, 2016 (JOC 16-039)
IMPORTANT REMINDERS (TINA)
Submitting a Bid Proposal Package
• Bid Deadline BEFORE 2:00 pm
• Wednesday, February 24, 2016 (JOC 16-037 and JOC 16-038)
• Wednesday, March 23, 2016 (JOC 16-039)
Bid Opening Location
• Bid proposals will be publicly opened and read starting at 2:00 pm on the Bid
Deadline in Facilities, Building 70, Room 114
Updates posted on website
• http://www.afd.calpoly.edu/facilities/
Questions?
END OF MANDATORY
PRE-BID CONFERENCE
JOB ORDER CONTRACT –
JOC 16-037, JOC 16-038 AND JOC 16-039
FOR FACILITIES – MINOR CAPITAL OUTLAY PROJECTS
NON-MANDATORY
PRE-BID CONFERENCE
