WELCOME!SBE Boot Camp

LEARN HOW TO BID

JOB ORDER CONTRACTS (JOC)

JOE DUTTER

JOC Specialist, JOC Program

KEVIN AUMAN

JOC Specialist, JOC Program1

Overview of the JOC ProgramJob Order Contracting or JOC is a pilot program enacted in 2003 by the CA State legislature under Assembly Bill (AB) 14 to demonstrate an alternative and optional procedure for bidding public works projects that is applicable only to LAUSD. This Program was implemented by LAUSD in January 2005.

Since the Program’s inception, it evolved from a low bid to a best value contract delivery method in January 2013 under AB 2580.

What is Job Order Contracting or JOC? It is a contract delivery used to accomplish a large number of individual projects under a single master contract awarded to the most qualified and prequalified bidder who is licensed, bonded and general liability insured.

Contractors interested in participating in the JOC Request for Proposal (RFP) process must meet the District's prequalification requirements and the specific RFP’s minimum qualifications.

Reference: Assembly Bill 2580 and Public Contract Code 20919 Visit www.leginfo.ca.gov for statutes and legislative information.

2

Overview of the JOC ProgramJob Order Contracting (JOC) as a best-value contract delivery method

JOC expedites the ordering process for construction repair and alteration work including small new construction work.

JOC eliminates the contracting complexities of the traditional bidding process.

JOC uses The Gordian Group’s Construction Task Catalog (CTC) which contains more than 180,000 construction line items from material, equipment, and labor to demolition to installation. It is priced for the area of work and customized for each program such as the WLAN Program as an example. It comes complete with technical specifications.

Bidder agrees to a fixed period, fixed unit price, and indefinite quantity contract that provides for the use of job orders for public works or maintenance projects.

Bidder bids an Adjustment Bid Factor (ABF) which is used as a multiplier against CTC

(i.e. 1.000 ABF x quantity x unit cost)

3

Overview of the JOC Program Benefits of JOC

To the Owner: Benefits include the accelerated completion of projects, cost savings, and reduction of construction contracting complexity

To the Contractor: Build/increase bond capacity through successful completion of projects (performance based) and potential guaranteed work up to the maximum value of the master JOC contract (per bond capacity)

4

JOC Uses LAUSD considers JOC appropriate for minor new construction, renovations

and repairs, including but not limited to:

Minor construction projects (under $1M) HVAC and Electrical Routine repairs, Emergency repairs, and Renovations Upgrades to ADA standards Site work and utilities Parks and playgrounds Upgrade landscaping Replace flooring Demolition Abatement of Hazardous Materials Completion of Work of a terminated or “take-over” contract

5

AB 2580

Work applies District-Wide. However, on specific programs such as the WLAN Program, the District may choose to assign JOC Contractors per Region.

The guaranteed minimum amount is $25,000 per Master Contract. The District awards JOC master contracts based on contractor performance and ability to increase bond capacity.

The initial contract term is 1 year with two 1-year options for a maximum contract period of 3 years.

The initial value of the contract may be adjusted at any time up to a potential value of $5M covering the first term of the contract and up to a potential maximum value of $10M thereafter, as long as the prime contractor can bond for the additional contract amount.

6

AB 2580

Contractor is responsible for requesting an update/increase of its Prequalification rating based on its current approved bond capacity.

A bid guarantee of $25,000 is required with each proposal submittal. Please refer to Document 00 4313 – Bid Security Form.

Payment and performance bonds: Each shall be for 100% of the initial contract value

The District will automatically increase or decrease the Adjustment Factor annually up to the maximum legal term and limit of the contract based on the most recent quarter’s California Consumer Price Index (CCPI).

7

JOC Contract and Job Orders

7

Issue“Master” Contract

IssueJob OrdersAgainst“Master” Contract

JO #1

JO #2

JO #3

• Job Order #4 cannot be issued until capacity increased per policy

• Contract extensions must be approved by the District

IssueJob OrdersAgainst“Master” Contract

JO #4

JO #5

JO #6

Extend/Increase $“Master” Contract

RFP REQUIREMENTS Prior to submittal of proposal, contractor must carefully examine the RFP Package for the license, RFP criteria,

bidding, and contracting requirements.

Prospective bidders attend a mandatory pre-proposal meeting. Bidders must “sign-in” on the pre-proposal meeting attendance sheet. Bidders will not be allowed to sign-in to represent more than one (1) firm.

Requests for Clarifications (RFC) found under the Supplementary Instructions to Bidders (Section 00 2213) are due no later than the deadline set forth in each RFP package, unless extended via Addendum issued by the District. Bidders must complete Section 00 2213 Form, included in each RFP package and e-mail to christy.guzman@lausd.net. You may submit one form for the batch of RFP’s.

Proposal due date is “specified per RFP, unless extended by Addendum issued by the District. If you arrange for courier delivery, you are responsible for arranging for timely delivery before the proposal due date and time.

Immediately following the proposal submittal date, the District will post RFP participants’ names who submitted proposals on our website at http://www.laschools.org/new-site/bidding-opportunities/joc/resources.

A “cone of silence” is in effect for a period of time while the District staff reviews and evaluates proposals received. The timeframe for evaluation and selection process will vary depending on the number of proposals received.

9

RFP REQUIREMENTS The District expects Proposers who are successfully awarded a JOC contract, to maintain one (1) contract (up to 2 max

or depending on the size of each Program).

If Proposer decides to participate in future JOC RFP’s and is awarded multiple JOC contracts, Proposer commits to perform all assigned work District-Wide and be able to increase bond capacity at any time as deemed necessary by the District.

The District may at its sole option, refrain from issuing future Job Orders if Contractor fails to perform pursuant to Article 15, Section 15.3 of the JOC General Conditions and may exercise its right at any time, to initiate process to terminate contract for convenience or for cause for failure to perform.

The District shall receive and stamp sealed proposal submittals and accept only those that were received from prequalified proposers prior to the specified deadline. The deadline to submit PQ applications is specified in each RFP.

Proposals received from non-prequalified proposers and those received and time-stamped after the posted deadline will be returned.

RFP participants’ firm names will be posted online within 48 hours of the RFP deadline at http://www.laschools.org/new-site/bidding-opportunities/joc/resources. Award status will be posted on this website as soon as an award determination is made.

10

FACTORS USED IN SELECTION PROCESS

Bid Adjustment Factor

Contractor’s Performance Score

SBE Certification from the District or other Public Agencies

Public works construction contract references

11

12

The District may consider data and experience records it maintains for all or some of its construction projects completed by the Proposer for evaluation and selection purposes and in determining the most qualified and prequalified proposer. 

SAMPLE RFP CRITERIA (THIS IS CUSTOMIZED PER SPECIALTY TRADE) License: Proposer must have a valid and active “C-10” Electrical license Classification

Minimum Qualifications: Proposer must submit qualifying references based on the criteria below: 

1.Within the last five (5) years, Proposer must have performed prime contract and/or subcontract work for the installation of a Wireless Local Area Network (WLAN) or Local Area Network (LAN) each with a minimum contract value of $250,000.00.

2. Contractors shall adequately demonstrate that they have the requirements in their respective specialty in the following areas:

a. All low-voltage construction activities must be performed by a Contractor holding a C-7 Low Voltage Systems Contractor or a C10 - Electrical Contractor license classification.

b. All electrical construction activities must be performed by a Contractor or Subcontractor holding a C-10 Electrical Contractor license. 3.  Proposer must provide verified contact information for validation purposes.

RFP CRITERIA

RFP CRITERIA

13

Contractor Performance Score established pursuant to the District’s Prequalification Program  Field Component Scoring (50 Points): A Contractor Performance Evaluation and Safety Evaluation is used to report the performance and safety of a contractor on LAUSD construction contracts. The Owner Authorized Representative (OAR) for the contract coordinates with the Inspector of Record (IOR) and End User to complete the evaluations, which are forwarded to the District’s Prequalification Unit for inclusion to a contractor’s file.

Compliance Component Scoring (50 Points): If Applicant has completed LAUSD construction contracts in the past three (3) years, its compliance on the following criteria will be measured and scored.  

1. Labor Compliance2. Project Stabilization Agreement (PSA)3. Bid Issues/Protests

Requests to be Released from BidBid Protests on LAUSD bids that were without meritNumber of Substitution of Subcontractors requests that were denied or for which a penalty was assessed 

4. Assessments Liquidated Damages assessedStop NoticesPermanent Withholds due to failure to complete punch list items or for stop notices that were not releasedDeductive Change Orders due to the Applicant’s failure to perform 

5. Failure to comply with LAUSD contract Warranty requirements 

For more information on the District’s evaluation criteria and scoring/rating system, please visit the District’s website at http://www.laschools.org/new-site/prequalification/

RFP CRITERIA

14

Small Business Enterprise (SBE): Proposer may submit proof of SBE certification by the District or other public entities by submitting one of the following requirements.  

If Proposer is SBE Certified, provide a copy of the SBE Certificate issued by the District or other public agencies at the time of proposal submittal. Certifications, other than SBE, will not be considered. The certification must be within 3 years of issuance date.

 If Proposer is not SBE Certified and wishes to gain 5 bonus points, provide proof of an average SBE participation of 25% on District projects completed within the last 3 years. Provide documentation or proof of compliance. Subject to verification.

 Proposer will receive a maximum score of five (5) bonus points if one (1) of the above SBE requirement is met. The 5 bonus points will be added to the Contractor Performance Score as shown below:

    Contractor Performance Score: 95

SBE Certification or Proof of 25% Participation Goal: 5 Total Points 100

 The points are converted to percent (%) format (100 points = 100%) for selection purposes.

The maximum potential score when combining the Contractor Performance Score and SBE score is 105 points or 105%.

SELECTION PROCESS

15

SELECTION PROCESS

1. The selection and award will be based on the responsive proposals received and evaluated in accordance with the minimum qualification requirements and criteria set forth in this RFP.

2. The District will determine the most qualified prequalified proposer as follows:

The Composite Adjustment Factor is the resultant factor derived from dividing the Adjustment Bid Factor by the Contractor Performance Score and SBE Points as shown below.

 

Calculation of the Composite Adjustment Factor

The Adjustment Bid Factor is divided by the total Contractor Performance Score and SBE Points

calculated in percent format (i.e. 80 + 5 points = 85 or 85%) for evaluation, ranking, and selection

purposes as shown below.

Contractor Adjustment Bid Factor /(Performance Eval Score + SBE Points) = Composite Adjustment Factor

A 1.0000 90% 0 1.1111 (Rank 3)

B 0.9000 93% 0 0.9677 (Rank 2)

C 1.0000 100% 5 0.9523 (Rank 1)

In the above example, Contractor C is determined to be the most qualified bidder, provided that all other requirements and criteria of the RFP are met.

16

JOC Project Initiation

17

Joint Scope Meeting & RFP

18

Proposal & Validation Process

19

19

Award Phase

Bond Requirements JOC Contracts: A $25,000 Bid Bond or Bid Guarantee is required at the

time of bid. Upon award of the Master Contract, Contractor must provide 100% Payment and Performance Bonds.

Formal Contracts: A 10% Bid Bond is required on all “Formal” competitively bid construction contracts

Payment and Performance Bonds are required on “all” public works projects in excess of $15,000.

20

Get Prequalified Safety PQ - Informal (A/B Letter) Contracts

Standard PQ - Formal & JOC Contracts

Visit our PQ webpage at http://www.laschools.org/new-site/prequalification/forms for more information.

21

Labor Compliance Program Prevailing Wage

- It is a set of “minimum wages” that must be paid to workers on public works projects

- Applies to contracts over $15,000 for

existing construction such as alteration, demolition, repair, maintenance, or warranty work

- Applies to contracts over $25,000 for new construction or installation work

Visit our website at www.laschools.org/contractor/lc for more information

22

Project Stabilization Agreement (PSA) PSA is required on “all” JOC projects

Goals and objectives are to prevent work stoppages or slowdowns, encourage contracting with small businesses, hire local workers when possible, provide a supply of skilled craft persons, establish a standard dispute resolution process when matters do arise

Visit our website at www.laschools.org/contractor/psa/ for more information

23

PROJECT STABILIZATION AGREEMENT (PSA)

AB 2580 requires the primary job order contractor to provide public notice of available workto be subcontracted by trade, and to notify the LAUSD of the subcontractor selected.Requires the notification to:

A. Include every subcontractor for all tiers and establish the authorized subcontractor list for the job order. Prohibits the commencement of work prior to seven (7) days' notice of the established subcontract list and any additions of any subcontractor to the job order;

B. Identify the scope of the work to be performed by each subcontractor to the job order by craft. If a subcontractor performs multiple crafts, the job order contractor shall identify the work of each craft to be performed; and,

C. List any substitute subcontractors and the justification for the substitution, with seven days' notice. Allows the LAUSD to request a hearing to evaluate the substitution request, in accordance with the Subletting and Subcontracting Fair Practices Act (Act).

50% Local Hire is required under the PSA. Compliance subject to audit.

24

PROJECT STABILIZATION AGREEMENT (PSA)

1. AB 2580 specifies that Project Stabilization Agreement (PSA) compliance shallconstitute no more than three major violations on any LAUSD project within thepast three years. If the contractor has more than three violations, the LAUSD shallseek administrative review of those violations. Violations include, but are not limited to the following:

a. Failure to register core workers with the appropriate building trade union; b. Failure to assign apprentices, as specified; c. Failure to comply with job order contract terms, including contract amount thresholds,

contract duration limits, and notification requirements before work commences, as specified; and,

d. Incorrect assignment of work in accordance with the LAUSD's PSA.

2. Requires a 7-day notification prior to start of work. Contractor will be responsible for notifying the trades/unions prior to any work commencing. The District will be responsible for monitoring compliance through LCP and PSA.

3. Requires that any job order changes be compliant with existing laws on allowable job order change amount thresholds, as specified.

25

REQUIRED SUBMITTALS

26

Please refer to the RFP requirements to ensure complete proposal document submittals per EXHIBIT

“F” Section 00 4113 (Required Bid Forms for Sealed Proposal Submittal)

Fill out and submit the following with your sealed bid:

1. Document 00 4100 - Bid and Acceptance Form (signature required)2. Document 00 4313 - Bid Security Form (signatures required)3. Document 00 4500 - Certification Requirements (signature required)4. Document 00 4519 - Non-Collusion Affidavit (signature required)5. Document 00 7351 - Subletting and Subcontracting Fair Practices Act List6. Exhibit “A” – Certification of Proposal (signature required)7. Exhibit “B” – General or Specialty Trade Experience (complete and sign)

Optional (5 bonus points added to Contractor Performance Score if submitted with each proposal):1. Copy of current and valid SBE Certificate or provide an average SBE participation of 25% on all District projects completed within the last 3 years. Certificate must be within 3 years of issuance date. http://www.laschools.org/new-site/small-business/

Owner Controlled Insurance Program (OCIP)

It is a single insurance program that insures the District, the Board, all Enrolled Contractors and Subcontractors, and other designated parties for Work performed at the project site(s).

Coverage under the OCIP includes Workers’ Compensation, Employer’s Liability, General Liability, Excess Liability, Builders Risk, and Contractor’s Pollution Liability Insurance

Visit www.laschools.org/contractor/cc/ and look for OCIP under Document Storage Areas for more information.

27

OCIP cont’d… Contractors must maintain its standard operational insurance coverage –

OCIP only covers you on each contract awarded

District pays the insurance premiums for the OCIP described in the OCIP Manual

Notify your insurance broker/agent of the coverage provided under OCIP to avoid duplication of coverage.

Each bidder is required to EXCLUDE from its bid price the cost of the OCIP

coverage provided by the District.

28

Bidding Opportunities Formal & Master JOC Bids - Visit our website at

http://www.laschools.org/new-site/bidding-opportunities/

Job Orders - visit our website at http://tools.egordian/rptResultList.aspx (for subcontracting opportunities)

Informal Bids - http://mo.laschools.org/fis/existing-facilities/m-and-o/bidwalks/

29

Bidding Opportunities Search for subcontracting and prime contracting opportunities

Attend pre-bid meetings to meet District representatives, prime contractors, subcontractors, labor union representatives, industry experts, etc.

Understand the District’s prequalification, bidding and contracting requirements http://www.laschools.org/new-site/bidding-opportunities/joc/resources

30

Contractor Resources All JOC RFP’s are subject to the following requirements in addition tothe RFP requirements:

1. Assembly Bill (AB) 2580 and Public Contract Code (PCC) 20919 – legislation and statutes are included in the RFP package http://leginfo.ca.gov/

2. Prequalification Program http://www.laschools.org/new-site/prequalification/

3. Prevailing Wage / Labor Compliance Program (LCP) http://www.laschools.org/new-site/labor-compliance/

4. Project Stabilization Agreement (PSA) http://www.laschools.org/new-site/project-stabilization/

5. Small Business Enterprise (SBE) http://www.laschools.org/new-site/small-business/

6. Owner Controlled Insurance Program (OCIP) http://www.laschools.org/fcs/cc/pq/file-storage/?folder_id=1045824

7. Contractor Bondworks Programhttp://www.laschools.org/new-site/small-business/contractor-bondworks

8. District’s technical specifications available online at http://www.laschools.org/documents/?folder_id=219598873

31

Contact Information

FACILITIES CONTRACTS

333 S. Beaudry Avenue, 22nd Floor

Los Angeles, CA 90017

(213) 241-2651 (Prequalification Unit)

(213) 241-1188 (JOC Contracts Unit)

32

LAUSD Expectations HIRE AND TRAIN apprentices and make appropriate payments to apprentice

training trust.

HIRE a workforce for the project that reflects the ethnic diversity of Los Angeles.

HIRE employees that conduct themselves in a professional manner around students.

CONSTRUCT the project according to the plans and specifications.

COMPLETE the project within the contract time limits.

WE BUILD - The Board is committed to participation of local area residents in its school construction and modernization programs. To identify trained and skilled labor resources, please contact the "We Build" Program at (213) 241-4990. This Program works directly with the Union Building Trades.

33

Q & A

34

Thank you!Thank you!