City of Calgary Prequalification For Prime Contractor. January 17, 2012
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1 City of Calgary Prequalification For Prime Contractor January 17, 2012
2 Presenters Andrew Mardon, Manager, Supply Management, Finance & Supply Jim Nicholson, Procurement Coordinator, Finance & Supply, Strategic Procurement Glenn Chanut, Coordinator Project Management, Building Infrastructure, Corporate Properties & Buildings Shannon Guterson, EHS Dept. Team Lead, CA/CFOD, Environmental & Safety Management Lisa Sutherland, Corporate Environmental Specialist, Environmental & Safety Management Pg 2
3 Objectives When You Leave Today You Will Understand: 1. If you meet the prequalification criteria 2. When to submit a prequalification 3. How to submit a prequalification 4. When to submit re-prequalification Pg 3
4 What is the Prequalification Process? A process developed to create a list of contractors meeting The City s minimum requirements to bid on City construction work and be capable of accepting prime contractor status Pg 4
5 Construction Prequalification Process Intent Reduce time between tender close and award Ensure consistently high quality construction delivery Achieve most effective use of City and contractor resources Pg 5
6 What is a Prime Contractor? An employer who has a contract with an owner and has the expertise and experience to take full responsibility for its completion Undertakes to perform a complete contract, and may employ and manage one or more subcontractors to carry out specific portions of the contract Assumes responsibility for health and safety considerations for the contract thereby assuming liability for the project Pg 6
7 What is a Prime Contractor? Meets City Requirements For: Commercial Environmental Safety Technical Supply Management (Insurance, WCB, COR, Bonding, etc.) Environmental and Safety Management (Environmental Procedures) Environmental and Safety Management (Safety programs) Category Champions (Project Experience) Pg 7
8 Prequalification Package Contractor to Provide the Following: Schedule A (Environmental) Schedule B (Safety) Schedules C through M (Technical) Schedule N/P (Commercial) All sections completed Pg 8
9 Prequalification Process Updated 2011/03/23 Pg 9
10 City of Calgary Review - Commercial Process Ensure the Package Contains the Following Documents: Bonding Insurance WCB Business Licence Signature Sheet Organizational Chart Certificate of Recognition (COR) Contractor Environmental Responsibility Pkg.(CERP) Schedule N Pg 10
11 City of Calgary Review - Commercial Tips Read the prequalification document and respond to it as if it was a tender. Responses are not optional and unless they meet the stated requirements, the submission will be rejected Use the checklist in the prequalification document (Schedule N ) as a guideline to ensure all requested information is being supplied If you have any questions while preparing your submission ask Pg 11
12 City of Calgary Review - Environmental Process 1. Review the submitted environmental procedures to ensure they meet The City s requirements 2. Consider the nature of the work categories which a contractor has applied for when reviewing submissions 3. Review justification for why a certain environment requirement is not applicable 4. Approve the submission for the environmental component If procedures are sufficient to meet The City s environmental requirements Pg 12
13 City of Calgary Review - Environmental Criteria Contractors Must Submit Their: Environmental policy Acknowledgement of The City s environmental requirements Copies of their Standard Operating Procedures (SOP): Chemical & material management Vehicle & equipment maintenance Waste management Erosion and sediment control Substance release response and reporting Training Pg 13
14 City of Calgary Review - Environmental Tips Steps For a Complete Submission: Avoid high level statements and submit your actual procedures Provide an explanation for why a particular environment element may not be applicable Future Direction: Continue efforts to streamline environmental requirements and checks (e.g. integration of ESC and ECO plans) Integration of environmental and health & safety requirements Pg 14
15 City of Calgary Review - Health & Safety Process 1. Review the WCB clearance letter and details of the COR (or SECOR) 2. Review the health & safety program (or manual) to ensure it meets City requirements outlined in schedule B 3. Consider the nature of the work categories which a contractor has applied for when reviewing submissions 4. Review and confirm process for managing subcontractors 5. Approve the submission for the health & safety component If procedures are sufficient to meet City requirements Pg 15
16 City of Calgary Review - Health & Safety Criteria Contractors Must Submit: An Alberta Certificate of Recognition (COR or SECOR) Letter of good standing from the Alberta Workers Compensation Board Organization chart highlighting the reporting structure of safety personnel Training records of safety designates (e.g. Leadership in Safety Excellence, Prime Contractor) A copy of their safety program or manual Pg 16
17 City of Calgary Review - Health & Safety Tips Steps For a Complete Submission: Avoid high level statements and submit your actual procedures Ensure you clearly identify the location of safety specific procedures Future Direction: Collecting data on the safety performance of our contactors Conducting regular health & safety reviews with contractors Integration of environmental and health & safety requirements Pg 17
18 City of Calgary Review - Technical Process 1. Review previously approved information for content 2. Review complete submission 3. Check technical background and previous work examples submitted 4. Ensure reference checks have been included d 5. Reference checks are conducted if required for clarification and to get a better understanding from reference perspective 6. Past vendor performance evaluations are reviewed and taken into consideration for final recommendation 7. When review is complete including reference checks then if all is acceptable then approval is given Pg 18
19 City of Calgary Review - Technical Criteria Prime Contractor Work Experience: Provide by the scope and dollar value of the projects where the contractor has acted in the capacity of Prime Contractor References: Contractors to provide a reference for each project they list in their work experience Past Performance: Vendor Performance Evaluations provided by City Project Managers after completion of each project are provided to Category Champions Pg 19
20 City of Calgary Review - Technical Tips Read the prequalification document and respond with sufficient detail Give detailed examples of previous work and how it was done Provide examples of similar sized projects as the ones you intend to bid on Review your documents for accuracy and completeness prior to submission If you have any questions while preparing your submission ask Pg 20
21 Declining Submission - Common Reasons Incomplete, Expired or Missing: Business licence Signature page incomplete (no corporate seal or waiver) Bonding capability References WCB clearance Environmental SOPs (e.g. Certificate of Recognition (COR) erosion & sediment control, training procedures, working CERP package alone, management of subcontractors) Safety manual Insurance Annual contract dollar value form Organizational chart Including Electronic copy safety personnel Project experience templates Pg 21
22 Declining Submission - Common Reasons (cont d) Contains Statements the Contractor Will: Meet legislative or City requirements but provide no actual procedures Make any changes required to meet requirements without providing the evidence that these programs are in place Provide what they submitted in prior years Pg 22
23 Declining Submission - Common Reasons (cont d) Environmental SOP procedures do not meet City or legislative requirements Lacks explanation for why a particular environmental element may not be applicable Commercial data out of date or not provided Pg 23
24 Prequalification Package Search Select: Select: Prequalification for Prime Contractor for Construction Projects (Closing Date: 2012 December 31) Pg 24
25 Re-Submission Prequalification is a three year term from date of approval Start re-prequalification process four to six months prior to expiration i of prequalification i Re-submit prequalification package when there is a legal entity name change (bids will only be accepted from bidders that match the prequalification list) Pg 25
26 Process and Package Improvements Simplified prequalification package content Increased environmental section requirements to emphasize increased industry standard d expectations Consolidated multiple construction prequalification packages into a single prequalification document Contractors apply for prequalification by category Pg 26
27 Process and Package Improvements Short Term 0-4 Months: Improve prequalification openness and process effectiveness Evaluate online process Medium Term 4-8 Months: Benchmark City prequalification process to industry and municipalities Identify and implement quick win best practices Pg 27
28 City of Calgary - Future Improvements Longer Term 8-18 Months: Implement online status reporting of all inprogress prequalification packages Develop and collaborate on web based prequalification submission and evaluation process Concentrate safety and environmental subsection reviews to dedicated ESM resources Implement staggered renewal process Pg 28
29 Process and Package Improvements Work With Industry and Obtain Input on: Combining with other municipalities and industries prequalification best practices to improve and strengthen City prequalification process Achieving best in practice construction prequalification process Pg 29
30 Summary Plan Ahead: If you plan to bid on City contracts, allow enough time to process the submission or re-submission Complete the Application: Follow the prequalification document to ensure you have: submitted all the required documentation met the criteria Organize Your Documents Pg 30
31 Questions & Answers Pg 31
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