Title:
Title
On-Call General Construction Contracting Services List and Agreements (Two-Thirds Vote Required)
End
FileID
File ID: 2019-00621
Location
Location: Citywide
Recommendation:
Recommendation
Pass a Motion: 1) suspending competitive bidding in the best interests of the City to use a Request for Proposal (RFP) process to award contracts and establish an On-Call General Construction Contracting Services List; 2) approving the On-Call General Construction Contracting Services List (Exhibit A) of four prequalified contractors for a period of up to five years; 3) approving adding three additional contractors to the On-Call General Construction Contracting Services List for contract award if the need arises; 4) Approving the On-Call General Contracting Services Agreements with the four contractors identified in Exhibit A for a three year term with two one-year renewal options in an amount not to exceed $900,000; 5) authorizing the City Manager or the City Manager’s designee to execute these agreements; and 6) authorizing other City departments to award contracts to the firms on the On-Call General Construction Contracting Services List.
Contact: Norm Colby, Facilities and Real Property Management Superintendent, (916) 808-8335; Mark C. Brown, Supervising Engineer, (916) 808-7118; James Christensen, Facilities Manager, (916) 808-5863, Department of Public Works
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Exhibit A - On-Call General Construction Contracting Services List
3-Contracts
Description/Analysis
Issue Detail: Staff recommends the suspension of competitive bidding and the use of a Request for Proposal (RFP) process to establish an On-Call General Construction Contracting Services List and to award four contracts to Otto Construction, Jones and Laberti Builders, TPD Construction Builders, and CCS Inc. dba Corporate Construction Services for a three year term with two one-year renewal options in an amount not to exceed $900,000. On-Call contracts are often established to augment Facilities Maintenance staff during times of peak workload, to provide specialized work, to work on essential facilities, and to deliver services in a more cost effective and efficient manner.
The current On-Call General Construction Contracting Services List for the Department of Public Works, Facilities Maintenance Division, was approved by the City Council on March 22, 2016 (Motion No. 2016-0082) and the list expired in March 2019. A new On-Call General Construction Contracting Services List is required to continue this “best practice” for cost effective and efficient project delivery.
The On-Call General Construction Contracting Services List is being established for work anticipated to be needed over the next three to five years. This list of prequalified contractors may be used by other City Departments to award separate contracts for construction services provided that sufficient funding exists, each department obtains appropriate approvals, and each department executes its own agreements and purchase orders.
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code Section 3.60.170.
Economic Impacts: None at this time. Individual task orders will result in expenditures that will have positive impacts in terms of employment and material purchases.
Environmental Considerations:
California Environmental Quality Act (CEQA): Creating an On-Call contractor list is an administrative activity that does not constitute a “project” as defined by section 15378 of the California Environmental Quality Act (CEQA) Guidelines and is otherwise exempt pursuant to sections 15061(b)(3); 15378(b)(2). Specific task orders for projects performed under these agreements will undergo individual review; however, most of the projects are anticipated to be exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15301, existing facilities. The operation, repair, maintenance, and minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination are exempt from environmental review.
Sustainability: Not applicable
Commission/Committee Action: None
Rationale for Recommendation: Suspending competitive bidding is required to establish an On-Call General Construction Contracting Services List for awarding contracts that does not follow the conventional issuance of an invitation to bid for a specific project and award to the lowest responsible and responsive bidder.
On-Call contracts are created to provide timely services during times of peak work load, when specialized work is required, or when operations of essential facilities are being interrupted. Establishing an On-Call contractor list and awarding on-call contracts are best management practices as these contracts are primarily for repairs and maintenance work and are not proposed to be used as a substitute for the bidding process for large construction projects.
On January 18, 2019, a Request for proposal (RFP) for On-Call General Construction Contracting Services was advertised (P19014541003). A total of 8 responses were received. A selection committee comprised of City staff from the Department of Public Works reviewed the proposals. Committee members selected firms by scoring each based upon criteria that was identified in the RFP. The top-ranked four firms are recommended for on-call contract award. Staff also recommends adding three lower ranked firms to the On-Call General Construction Contracting Services List in case additional firms are needed based on the workload. The lowest ranked firm was deemed not qualified to be on the list.
Financial Considerations: The four On-Call contracts will have a not to exceed amount of $900,000 each and for a term of three to five-years. Task Orders for each project and Purchase Orders encumbering funds under these agreements will not be created until projects are identified and funding is secured. Funding for each project will be identified at the time the project is being assigned and the Purchase Order is authorized. The funding sources may include local and state funds (if bidding can be waived), and department operating budgets. Contractors may have multiple assignments each year, however, the aggregate amount shall not exceed the contract amount as identified in Exhibit A
Local Business Enterprise (LBE): Not all of the firms listed in Exhibit A are LBEs. The minimum LBE requirements is waived as the City has suspended competitive bidding and utilized and alternate procurement method to select contractors.