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County of San Diego

JOB ORDER CONTRACTING

Pre-Bid ConferenceContracts 203-211

January 30, 2015

Copyright © 2003 The Gordian Group, Inc. all rights reserved

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Pre-Bid Conference Agenda

• Explanation of JOC Concept

• County of San Diego’s JOC Program

• How to Bid a Job Order Contract

• How to Obtain a Bid Package

• All questions must be formally submitted as per the procedures outlined within the Bid Documents. Nothing discussed at the Pre-Bid meeting is binding unless it is addressed in writing via an addendum to the solicitation.



JOC - Background

• Introduced In the United States in 1985 • DOD, USPS, NASA, GSA, HUD And Other Federal Agencies

• Over 1000 Job Order Contracts in Use

• Over $2 Billion of Construction Placed Annually

• Implemented by Major Cities, Counties, Schools• California State University System• University of California System• Los Angeles Unified School District• County of Los Angeles• SANDAG• United States Postal Service• Counties of Orange, Riverside, San Bernardino



Introduction• Job Order Contracting Provides:

• A Way to Accomplish a Large Number of Individual Projects with a Single Firm, Fixed, Competitively Bid Contract

• On-call Contractors Ready to Perform a Series of Projects for Competitively Bid Prices

• Typical Mission for Job Order Contracting:• Small to Medium Sized Straightforward, Standalone Construction,

Renovation or Demolition Projects• Complete the Work of a Non-performing Contractor

Punch list Change orders Take Over Work for Defaulted Contractor

• Sensitive Projects No Time for Traditional Bidding or Drawn-out Negotiations High Priority



Why JOC ?• Traditional Bid System can be Slow and Costly

• Months from Project Identification to Construction• Process Can Be Complicated• Adversarial Relationship Between the County and Contractor

• JOC Offers a Cost Effective Alternative to Traditional System

• Simplifies the Procurement Process• Faster Response – Days or Weeks instead of Months • Saves County 8 – 15% of Construction/Administrative Costs• Partnership Between the County and JOC Contractors

• JOC is Another Way for the County to Get Work Done in Addition to:

• In-House Work Force• Single Project, Lump Sum Bidding



JOC - Why It Works

• JOC Is A Series Of Individual Small Projects

• Contractor Is Guaranteed Only a Minimum Amount of Work

• Contractor Has A Continuing Financial Incentive To Provide:

• Responsive Services• Quality Work• Lower Cost

• Future Job Orders Tied to Contractor Performance

• No Obligation To Award Specific Projects• The County can Use All Other Methods For

Accomplishing Projects



JOC Contract Documents

• Construction Task Catalog®

• Technical Specifications

• New CSI Format: Section 01-43



JOC Contract Documents• Construction Task Catalog (CTC)

• Pre-Priced Construction Tasks• Based on Local Labor, Material & Equipment Costs• Customized for County



JOC Contract Documents

• Technical Specifications

• Quality of Materials and Workmanship

• Customized for County



JOC Contract Documents• Project Manual

General InformationBid FormsBond FormsContractInsurance Requirements


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Gordian Resources at www.egordian.com



JOC Internet Based Management Software

• Software Manages All Aspects Of The JOC Process Including:

• Project Initiation

• Cost Estimate

• Meetings

• Job Scope and Requests

• Contractors Proposal

• Subcontractor Utilization

• Proposal Review

• Administration

• Submittal Log

• Invoices

• Related Documents

• Evaluation

• Forms

• Management Reports

• Security



Pre-Bid Guidance to Contractors

• Prior to Bidding the County Can Not:• Identify or Commit to any Specific Project or Location• Identify or Commit to any Specific Quantities or Tasks

• JOC has a Fixed Term• One Year

• No Guaranteed Minimum Value

• JOC has a Pre-established Maximum Contract Value

• For example, $4,200,000



County Program

• Filings and Permits• Most Projects do not require Permits• Contractor to Obtain Permits When Required • Fees paid to Government for all Permits Reimbursed

100%

• Liquidated Damages• Applied to all Job Orders

• Unforeseen Conditions• Treated as Additional Job Order

• Retainage• Based on individual Job Order• Released at Completion of Job Order



Bid Requirements• Competitive Bid

• Must Bid Two Adjustment Factors - Normal Working Hours 6:00 am to

6:00 pm Monday - Friday

Other than Normal Working Hours 6:00 pm to 6:00 am Monday - Friday and all day Saturday, Sunday and Holidays.

• Same Adjustment Factors Apply to All Tasks in the CTC Must Include all Indirect Costs,

Overhead & Profit

• Lowest Composite Adjustment Factor From an Acceptable, Responsive, Responsible Bidder Wins!

2 WORK PERFORMEDAFTER NORMALWORKING HOURS

WORK PERFORMEDDURING NORMALWORKING HOURS

3 COMPOSITE WEIGHTING:

80% x NORMAL HOURS20% x AFTER NORMAL HOURS



Current Bid Solicitations

$2M$2M$200KN/A1 year$2MSan Diego County

Flooring JOC 204

$4.2M$4.2M$420KN/A1 year$4.2MSan Diego County

General JOC 203

Pay.Bond

Perf.Bond

Bid BondOptionsTermMCVAreaTradeContract#

JOC 208

JOC 207

JOC 206

JOC 205

Mechanical

General

Electrical

General

San Diego County

San Diego County

San Diego County

San Diego County

$4.2M

$4.2M

$4.2M

$4.2M 1 year

1 year

1 year

1 year N/A

N/A

N/A

N/A

$420K

$420K

$420K

$420K

$4.2M

$4.2M

$4.2M

$4.2M $4.2M

$4.2M

$4.2M

$4.2M



Current Bid Solicitations

$4.2M$4.2M$420KN/A1 year$4.2MSan Diego County

General EngineeringJOC 210

$2M$2M$200KN/A1 year$2MSan Diego County

Landscape JOC 209

Pay.Bond

Perf.Bond

Bid BondOptionsTermMCVAreaTradeContract#

JOC 211General Engineering

San Diego County $4.2M 1 year N/A $420K $4.2M $4.2M



JOC Execution Process

• Joint Scope Meeting• Develop Scope of Work

• Request for Proposal

• Contractor Develops Proposal• Selects Tasks and Quantities• Prepares Incidental Drawings &

Sketches• Develops Schedule • Prepares List of Subcontractor

• Contractor’s Proposal Reviewed and Approved

• Issue Lump Sum Job Order



BID CONSIDERATIONS

•Formula for Calculating the Job Order Value

•What is Included in the Adjustment Factor

•Understanding the Construction Task Catalog (CTC)

•Calculating the Adjustment Factor



ADJUSTMENT FACTOR

Formula for Calculating the Job Order Value*

* Non-prepriced Tasks are Calculated Separately



ADJUSTMENT FACTOR

•Two Adjustment Factors• 6am to 6pm Monday through Friday, except holidays• 6pm to 6am Monday through Friday, plus weekends

and holidays

• Includes Everything• Overhead, Profit, Bonds, Insurance• Scoping, Proposal Development and Review• All Administrative Paper Work• Obtaining Permits• Mobilization, Management, Clean-up• Supervision, Training, Quality Control, Etc.



CONTRACTOR STAFFING PLAN

• Staff To Match Volume• Must be Responsive to the County• Staff for Procedures

• Scoping• Proposal Development and Review• Supervising Construction

• Professionally Competent• Management Skills• Problem Solvers with People Skills• Team Members

• Must Be Able to Develop a Non-Adversarial Partnership with County Project Managers



UNDERSTANDING THE CTCGeneral Rules

Review Notes That Interpret the CTC• Unit Prices are for Complete and In-Place Construction

• Unit Prices Include Labor, Material and Equipment. Do Not Add Labor to Sidewalk Installation Task.

• Unit Prices Include the Cost of Delivery to Site, Unloading, Storage and Handling. Delivery Height is up to 2 ½ Stories

• Unit Prices Include Testing, Calibration, Balancing Etc. for New Work

• Unit Prices Include all Fasteners, Bolts, Anchors, Adhesives Etc. For New Work



UNDERSTANDING THE CTC

General Rules• Demo Price Includes Loading into Truck or Dumpster.• If Item Demolished as Part of Different Task, It will Not

Be Paid for Separately • Contractor Paid for Installed Quantities Only, No Waste• Assembly Prices take Precedence over Component Pricing• 14’ Working Height for All Work Except Masonry• 4’ Working Height for Masonry• Dumpsters are a Separate Item• Permits are Reimbursable at 100%



UNDERSTANDING THE CTC

Contractors Never Get Paid Separately For:• Moving and Returning Furniture. For Example, Moving

Office Furniture to Paint• Labor for Protecting Work in Place. For Example, a

Laborer to Stay After a Concrete Pour• Minor Barricades and Signage. For Example, Traffic

Cones and Orange Tape Around a Concrete Pour• Gang Boxes, Storage Containers• Portable Toilet, Field Office, Field Office Equipment

for Contractors’ Use• Layout, Site Engineering for the Work Itself• Administrative Vehicles



METHODS TO CALULATE AF

Use Historical Project Data• Select a Project which was Successfully

completed by your company that was completed by other means.

• You Know Scope and Direct Costs• Price Project From CTC• Add on Overhead and Profit

• Calculate the Adjustment Factor

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



PROJECT SCOPE

Renovation of a Classroom• Replace VCT• Replace Chalkboard on Front

Wall with Dry Marker Board• Replace 2 Doors and Hardware

• F84 Class 1 Lockset• LCN 4000 Series Closer• Glynn Johnson Stop

• Skim Coat Ceiling• Prime and Paint Ceiling and All

Walls• Install 1 Air Conditioner



BUILDING THE PRICE PROPOSAL

Section Mod Description UOM Price Qty Subtotal Total VCT Tile 03920 2021 Patch Floors, Cementitious Material SF $2.23 50 $111.50

09650 3111 Demo Vinyl Composition Tile SF $0.39 896 $394.44

09650 3111 Vinyl Composition Tile SF $1.25 896 $1120.00

09650 3111 1114 Add for Extra Stock SF $0.77 45 $34.65

09650 3121 Demo Base LF $0.39 120 $46.80

09650 1211 Vinyl Base LF $1.31 120 $157.20

09650 3127 Premoded Corners EA $1.67 4 $6.68 $1826.27

DryMarker Board 10415 1008 Demo Chalkboard, 1/4” thick SF $0.78 72 $56.16

10415 1002 DryMarker Board SF $14.93 72 $1074.96 $1131.12

Door and Hardware 01510 2010 4 CY Dumpster EA $173.00 1 $173.00

08210 3414 Demo 3’x 7’x 1-3/4” Door EA $10.00 2 $20.00

08210 3414 3’x 7’x 1-3/4” Door EA $121.09 2 $242.18

08210 3414 3484 For Solid Wood Stave Core add EA $25.27 2 $50.54

08210 3414 3499 For 1-1/2 hour Fire rated add EA $121.32 2 $242.64

08210 4103 Wired vision glass & frame SI $0.48 200 $96.00

08710 6414 Classroom Lockset, F84 EA $154.49 2 $308.98

08710 5103 Heavy duty door closer EA $191.91 2 $383.82

08710 2328 Heavy duty door stop EA $164.54 2 $329.08 09930 3304 Varnish Wood Doors EA $26.70 4 $106.80 $1953.04



BUILDING THE PRICE PROPOSAL

Section Mod Description UOM Price Qty Subtotal Total Paint and Plaster

09201 3001 One coat skim coat Plaster SF $0.30 896 $268.80

09201 3001 1101 Plaster Weld SF $0.03 896 $26.88

09201 3001 1102 Add for ceiling SF $0.03 896 $26.88

09201 3001 4012 Quantity Discount SF -$0.02 896 -$17.92

09920 2304 Prime Ceiling SF $0.19 896 $170.24

09920 2306 Paint Ceiling, 2 coats SF $0.35 896 $313.60

09920 1415 Prime walls SF $0.16 1378 $220.48

09920 1417 Paint walls, 2 coat paints SF $0.34 1378 $468.52 $1477.48

Air Conditioner

15770 6208 24,000 BTU Window A/C EA $706.24 1 $706.24

15770 6901 Aluminum A/C Bracket EA $211.23 1 $211.23 $917.47

Total $7,305.38



• Price from CTC– VCT $ 1,826.27– Dry Marker Board $ 1,131.12– Doors and Hardware $ 1,953.04– Paint and Plaster $ 1,477.48– Air Conditioner $ 917.47– TOTAL = $ 7,305.38

• Cost of Work (from quotes or estimate)– VCT $ 2,100.00– Dry Marker Board $ 995.00– Doors and Hardware $ 2,100.00– Paint and Plaster $ 1,600.00– Air Conditioner $ 800.00– TOTAL = $ 7,595.00

COMPARING QUOTES AND CTC



OVERHEAD COSTS

Overhead 8% - 12%• Job Order Development

• Joint Scope Meetings • Develop Detailed Scope of Work• Build Proposal

• Subcontractor Buy-out• Site Supervision and management• Bonds• Insurance• Vehicles• Home Office Support• Communications• Incidental Design Services



PUTTING IT ALL TOGETHER• Cost of Work

• In-House + Sub Prices = $ 7,595.00

• Mark-up • Overhead @ 10% = $ 759.50• Profit @ 10% = $ 835.45

• Total $ 9,189.95

• Price from CTC $ 7,305.38

$7,305.38 x (Adjustment Factor) = $9,189.95Adjustment Factor = $9,189.95 / $7,305.38 Adjustment Factor = 1.2580



BID CONSIDERATIONS

Contractors Should Expect To:

• Prepare Incidental Drawings or Sketches for Some Projects

• Required for Approval by the County

• Required to Analyze Proposal

• Prepare Proposals for Some Projects That Will be Canceled

• Lose Money on Some CTC Items

• Lose Money on Some Projects

• Experience a Long Lead Time Before Receiving a Positive Cash Flow



ESCALATION

•CTC Prices are Good for the Life of the Contract

•What About Changes in Prices

• Labor

• Equipment

• Materials



RISKS OF LOW AF

•A Low Adjustment Factor• Leads to Arguments in Proposal Review

• Inappropriate Tasks• Exaggerated Quantities

• Leads to Delays in Job Order Development

• Takes Longer to Review Proposals

•Creates an Adversarial Relationship• Reduced Volume of Work

• Lost Profitability

•No Change Orders to Improve the Margin



REVIEW / KEY POINTS

• Understand How to Price Projects from CTC

• Know the Value of CTC

• Evaluate Risk of an Unrealistically Low Bid

• JOC is a Long Term Relationship

• Volume Driven by the Contractor• Put the Right Staff in Place

• Good Defendable Proposals

• High Quality Construction

• Timely Completion

• Meeting County Expectations

• Solve Problems, Do Not Create Them



Bid Opening ScheduleSealed bids will be received at the County of San Diego, Purchasing

and Contracting (032), 5560 Overland Ave., Suite 270, San Diego, CA, at the following times and dates:

JOC 203 General Contracting at 2:00pm, February 17, 2015

JOC 205 General Contracting at 2:00pm, February 17, 2015

JOC 210 General Engineering at 2:00pm, February 19, 2015

JOC 211 General Engineering at 2:00pm, February 19, 2015

JOC 204 Flooring at 2:00pm, February 24, 2015

JOC 209 Landscape at 2:00pm, February 24, 2015

JOC 206 Electrical at 2:00pm, February 26, 2015

JOC 208 Mechanical at 2:00pm, February 26, 2015

JOC 207 General Contracting at 2:00pm, March 3, 2015



How to Obtain a Bid Package Bid documents, including Construction Task

Catalog®, Specifications and Bid Forms are available to be downloaded free of charge from the Department of Purchasing and Contracting BuyNet website at: http://buynet.sdcounty.ca.gov.

Contact information as follows: Kristen Hill, Procurement Contracting Officer, Telephone (858) 505-6360, Email: [email protected]

All Questions must be submitted in writing for consideration of an addendum. Email all questions to Kristen Hill (PCO).

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