Los Angeles Unified School District JOB ORDER CONTRACTING (JOC) C.A.S.H. WORKSHOP. December 8, JUDITH REECE Director of Construction Contracts

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1 Los Angeles Unified School District 1 JOB ORDER CONTRACTING (JOC) C.A.S.H. WORKSHOP December 8, 2015 JUDITH REECE Director of Construction Contracts CHRISTY GUZMAN JOC Program Manager December 10, 2015 MARK HOVATTER Chief Facilities Executive CHRISTY GUZMAN JOC Program Manager JOC Overview 2 JOC was implemented as a pilot program for LAUSD in 2005 LAUSD initiated approx. 7,228 Job Orders valued at $746.3M to date Average procurement process is 32 days from Job Order initiation to NTP PSA and prevailing wage applies to all JOC work. 1

2 Why JOC Works for LAUSD 3 A Fixed Priced, Fast Track Procurement Process 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 Work is Tied to Contractor Performance No Obligation To Award Specific Projects LAUSD can Use All Other Methods For Accomplishing Projects Program is advantageous to SBE s to build / increase bond capacity-mini JOC up to $5M Partner with contractors and industry experts to improve catalog pricing JOC Uses 4 LAUSD considers JOC appropriate for minor new construction, renovations and repairs up to $1M per job order, including but not limited to: HVAC and Electrical Routine Repairs, Emergency Repairs, and Renovations Upgrades to ADA Standards Site Work and Utilities Parks and Playgrounds Upgrade Landscaping Replace Flooring and Roofing Demolition Abatement of Hazardous Materials Related Work For Contractors Doing Larger Projects Completion of Work of a Terminated or Take-Over Contract 4 2

3 Process - How is Work Done? 5 Joint Scope Meeting with LAUSD OAR, Contractor, and Others to define the Detailed Scope of Work LAUSD 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 Selection Criteria 6 The selection and award will be based on the responsive proposals received and evaluated per the request for bids criteria. Bid Adjustment Factor Contractor s Performance Score LAUSD SBE Certification Public Works Construction Contract References 3

4 Bid Considerations 7 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 Risks of Low Adjustment Factor 8 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: bid adjustment factor will be valid for the entire life of JOC Contract, which may be up to 3 years in duration. There will be no second chance to revise or amend adjustment factor so ensure contractors bid factor is responsive 4

5 Lessons Learned 9 Independent Cost Estimates are Crucial-JOC Contractors Not Intended to be Used as Estimators or as a Design Service Still Need Scheduling, Phasing Plans and Pre-construction Meetings Bid One Adjustment Factor Versus Multiple Coefficient Factors to Avoid Bid Factor Gaming Foresee Price Escalations (Estimating Department and JOC PM) Customize the Price Catalog According to Owner s Needs Identify and Compile All Non Pre-priced Items and Add Them to the Book Validation of Contractor s Cost Proposal - second level, objective management review Maintain Separation of Contracting Officer from JOC Project Managers to Prevent Conflict of Interest and Maintain Integrity of JOC Program Expedited Close-out and Release of Retention to Free up Bonding Capacity Notification of Union / Trades within 7 Days Prior to Commencement of Work LAUSD Notifies Trades at the Award Phase Lessons Learned 10 Build and Maintain a Partnering Relationship between Agency and Contractor Address Any Issues and Disputes ASAP Do Not back into Job Order Price from Construction Budget Estimate based on Catalog Prices when possible Use same Change Order Process as Formal Bid Process-Verify Contract Capacity Contractor or District can place Contractor out of Rotation if Performance or Work Capacity issues arise Be Cautious about Directing Contractor s Means and Methods-can cause delays in proposal phase Don t use JOC to Bid Shop but do Validate Bidding Trends by Comparing Formal Bid Prices to JOC Prices Contractor Must Have Permission from Los Angeles Unified School District to use a Non Pre-Priced (NPP) Task prior to submission 5

6 Resources 11 Public Contract Code (PCC) Prequalification Program Prevailing Wage / Labor Compliance Program (LCP) Project Stabilization Agreement (PSA) Small Business Enterprise (SBE) Contact Information 12 Facilities Construction Contracts Procurement Services Judith Reece, Director of Construction Contracts judith.reece@lausd.net Job Order Contracts Unit Gayane Stepanyan, Assistant Manager 333 S. Beaudry Avenue, 28 th Floor Los Angeles, CA Ph: (213) gayane.stepanyan@lausd.net or christy.guzman@lausd.net; Website: Prequalification Unit Anthony Gomez, Assistant Manager 333 S. Beaudry Avenue, 28 th Floor Los Angeles, CA Ph: (213) prequalification@laschools.org Website: 6