Job Order Contracting Services for Genearl Contractors ......JOC OVERVIEW-1 • Job Order Contracting is an Indefinite Quantity Construction Contract • JOC Introduced in the United

The Regional Municipality of Niagara

Corporate Services 1815 Sir Isaac Brock Way, PO Box 1042, Thorold, ON L2V 4T7

Telephone: 905-980-6000 Toll-free: 1-800-263-7215 Fax: 905-682-8521

www.niagararegion.ca

DATE: Wednesday, October 12, 2016

TO: ALL BIDDERS

RE: 2016-RFPQ-05 JOB ORDER CONTRACTING SERVICES FOR GENERAL CONTRACTORS MECHANICAL CONTRACTORS, ELECTRICAL CONTRACTORS AND ROOFING CONTRACTORS

FROM: Jeffrey Mulligan, Manager Purchasing Services

PHONE: 905-980-6000 x3343 FAX NUMBER: 905-682-8521

NOTE:

Urgent For Review Please Comment Please Reply Please Recycle

ADDENDUM # 1

1. Questions & Answers Q1. In regards to the value of work for the 1-year contract, how is the $750,000 broken down per job? Is it ten $75,000 jobs or seventy-five $10,000 jobs? If you could please address this question it would be greatly appreciated. A1. There is no guaranteed minimum number of Contracts to be awarded or guaranteed minimum value any particular Contract. The values have been estimated based on historical data and future anticipated projects. Therefore, no breakdown by project can be given at this time. The following projects are presented as examples of potential project scope and values. Again, there is no guaranteed minimum value of the Contracts. Project Examples: General Contractors

Space Accommodations $100,000

Building Envelope Improvements $250,000

EMS Storage Area Retrofit $ 35,000

Parking Rehabiliation $165,000

Regional Building Retrofits as needed TBD Mechanical

HVAC Upgrade $700,000

Rooftop Units and mechanical as needed TBD Electrical

3 to 5 Lighting Upgrade Projects $300,000 total

Electrical work as needed TBD Roofing

Roofing Retrofits as needed $750,000 total

2. Clarifications

1. Please note that the Deadline of any Question regarding this RFPQ is by End Of Day Tuesday October 18, 2016.

2. The maximum value of an individual Job Order shall not exceed $1,000,000.

3. The Region will be using the following method to calculate the financial marks on the Pre-Qual Evaluation scale:

(Lowest Award Criteria Figure (Adjustment Factor from page 45)/ Proponent’s Criteria Figure (Adjustment Factor from Page 45)) * Weighting Factor = Points awarded

For example, the Region receives four valid bids the following adjustment factors: Bidder 1 Adjustment Factor 1.1 Bidder 2 Adjustment Factor 1.2 Bidder 3 Adjustment Factor 0.9 Bidder 4 Adjustment Factor 1.1 The low bid is an adjustment factor of 0.9 and the scoring for the pricing component would be as follows: Bidder 1 0.9/1.1* 40 points = 32.7 points Bidder 2 0.9/1.2* 40 points = 30 points Bidder 3 0.9/0.9* 40 points = 40 points Bidder 4 0.9/1.1* 40 points = 32.7 points

3. Delete and Replace

Delete Section 4 Item 9 and replace with:

ESTIMATED ANNUAL VALUE

RFPQ #

Job Order

Contract

Category

# of Pre-

Qualifications

Estimated Annual

Potential Value

(Per Job Order

Contract)

Base

Term

Option

Term

Self-

Performance

Requirement

TBD-GC General

Construction

Primary & Secondary

Contractor $750,000 1 Year 1 Year

Not Applicable

TBD-MECH Mechanical Primary & Secondary


51%

TBD-ELEC Electrical Primary & Secondary


51%

TBD-ROOF Roofing Primary and Secondary


51%

The Estimated Annual Potential Value for the General Construction, Mechanical, and Roofing Job Order Contracts is $750,000 for each contract type. The Estimated Annual Potential Value for the Electrical contract is $350,000. The Contractor(s) may be issued Job Orders exceeding the Estimated Annual Value during any year of the Contract. The Contractor is not guaranteed to receive this volume of Job Orders. It is merely an estimate and is subject to all Niagara Region’s reserved rights within this RFPQ, any current or future approved By Laws and any directives of Regional Council.

4. Copy of Mandatory Presentation Attached as an Appendix to this Addenda is a copy of the Presentation as presented by the Project Team on September 29, 2016.

5. Listing of Mandatory Attendees – By Company

B&G Roofing, B&G MultiServices

BCR Electric

Besseling Mechanical

Bromac Construction

Cabcon Contracting Ltd.

Cahill Electric Inc.

Caird Hall Construction

Canal Marine Elect

Castle Plumbing

Dardan Electic Ltd

D.F. Brolon Roofing

Ecco Electric

ES Fox Ltd

Hamblet's Roofing & Siding Inc

Joe Pace & Sons

King Contractors of Niagara

Kraun Electric

Lead Mechanical

Mario’s Electric

M.J. Dixon Construction

Manorcore

Mattina Mechanical

Merit Contractors

Nortex Roofing Ltd.

Plumbway

Procon Constructors

Rooftop & Sheetmetal

Roque Roofing

Sam Visca

Serianni Construction

Sid Grabell Contracting Limited

Stolk Construction

TAT Construction

Tiltran Power Services

As per Section 5 Prequalification Notice,

Only Bids received from Bidders who attend the Mandatory Bidder Information Session, sign the attendance sheet shall be considered.

Any Bidder who does not attend the Mandatory Bidder Information Session or who arrives after the Mandatory Bidder Information Session has commenced (as determined by the Region’s representative in his/her complete discretion) will not be considered for the award of this contract. All other terms and conditions remain unchanged. Jeffrey Mulligan Manager Purchasing Services c. (File 2016-RFPQ-05)

RFPQ Meeting: September 29, 2016

REQUEST FOR PREQUALIFICATION FOR JOB ORDER CONTRACTING SERVICES

GENERAL CONTRACTORS, MECHANICAL CONTRACTORS, ELECTRICAL CONTRACTORS, AND ROOFING

CONTRACTORS

• JOC Overview • JOC RFPQ Documents • RFPQ Details • Contractor License Fee • Understanding the Construction Task Catalog® (CTC) • Non Pre-Priced Tasks • Calculating the Adjustment Factors • Filling Out the Form of Quotation • Considerations & Review • Contractor Adjustment Factors • Risk of Low Adjustment Factors • Application Dates and Details • Questions

Regardless of what is presented or said today, the RFPQ document should be bid as is unless amended or changed via an Addenda

2

RFPQ MEETING AGENDA

JOC OVERVIEW-1

• Job Order Contracting is an Indefinite Quantity Construction Contract

• JOC Introduced in the United States in 1985

– Dept. of Defense, USPS, NASA, etc.

• Implemented by states, counties, cities, K-12 schools, universities, housing authorities, etc. since 1990

• Implemented by City of Richmond and WorkSafeBC in British Columbia

• Hundreds of contracts currently in use

• Over $1.4 Billion in construction placed annually through Gordian JOC systems

3

JOC OVERVIEW-2

• Joint Scope Meeting With the Owner, Contractor, and Others to define the Detailed Scope of Work

• The Owner Issues Request for Quotation Package for the Agreed Upon Detailed Scope of Work

• Job Order Price Quotation Package – Typical Job Order Quotation Package Due Date will be 2 weeks from

the Request for Quotation Package • Review of the Job Order Quotation Package • Issuance of Job Order • Total Time Goal: Average 3-5 weeks

JOC OVERVIEW PROCESS

JOC ADVANTAGES

6

Why JOC Works for Contractors – Good work is rewarded with more work

• Profit is a function of volume • Volume is driven by performance • JOC provides a steady flow of work • Do not have to chase the next project

– Term relationship with the Owner • Develop relationship with the Owner

– Reduced Risk • Payment for every element of work performed • Ability to provide input during scope development

JOC OVERVIEW FOR SUBCONTRACTORS

7

Why JOC Works for Subcontractors – Responsiveness requires local prime presence and use of multiple

local subcontractors. – Wide range of possible projects means variety of subcontractors will

be needed to fulfill the contract. – Simplified procurement process for the Owner allowing them to

procure more work in a shorter period of time. Results in greater number of subcontractor opportunities

– Multiple projects on multiple sites simultaneously.

JOC OVERVIEW FOR OWNERS

• Why JOC Works for Owner – A Fixed Priced, Fast Track Procurement Process – Job Orders are Lump Sum – Accomplishing a Substantial Number of Individual Projects with a

Single RFPQ. With a major reduction in change orders. – Contractors Ready to Perform a Series of Projects at Different

Locations for Competitively Bid Prices – Contractors Has A Continuing Financial Incentive To Provide

• Responsive Services • Accurate Job Order Price Quotes • Quality Work on Time • Timely Close Out

– Future Purchase Orders Tied to Contractor Performance • No Obligation To Award Specific Projects • Owner can Use All Other Methods For Accomplishing Projects

8

• Time Savings – Faster Procurement = Weeks Instead of Months – Based on Owner-Contractor Non-Adversarial Relationship

JOC OVERVIEW – TIME SAVINGS

JOC OWNER BENEFITS

• Owner Also Uses JOC to

– Increase Transparency • The Owner Has the Ability to See and Review the Back-Up Pricing Details

– Schedule Flexibility • No Shelf Life for Prices or Job Orders. shelf life of pending priced work

good through the anniversary date of the JOC contract • Fast procurement cycle is good for end of fiscal year projects

10

• Request for Pre-Qualification • Construction Task Catalog® • Technical Specifications

JOC RFPQ DOCUMENTS-1

• Request for Prequalification – 1.0: Interpretation and Definition – 2.0: Communications – 3.0: Checklist of Required Submittals – 4.0: Proposed Scope of Work – 5.0: Prequalification Notice – 6.0: Procedures & Rules – 7.0: Prequalification – 8.0: Prequalification Form – 9.0: Request for Quotation: Adjustment

Factors and Calculation of the Award Criteria Figure

– 10.0: Procurement By-Law – Bid Irregularity – Appendix A – JOC System License and Fee

Agreement – Appendix B – JOC Supplemental Conditions – Appendix C – Construction Task Catalog &

Technical Specifications – 11.0: Additional Forms to be Submitted with

the Application


• Construction Task Catalog® (CTC) – Catalog of Pre-Priced

Construction Tasks – Organized by Construction

Specifications Institute (CSI) – Based on Local Labor, Material &

Equipment Costs – The tasks represent the “Scope of

Work” for the contract

JOC RFPQ DOCUMENTS -3

• Construction Task Catalog® (CTC) – Typical Task:


• Technical Specifications – Specifies Quality of Materials

and Workmanship – Corresponds with Tasks in

the Construction Task Catalog®


RFPQ DETAILS-1

16

Selection Based on a Request for Pre-Qualification (RFPQ) Evaluation is based on:

Mandatory Requirements Corporate Experience Comparable Construction Experience Experience of Key Personnel Understanding of the JOC Procurement System and Methodology for

Preparing Job Order Price Quotes Price

Lowest Price Based on Proposed Adjustment Factors Normal Working Hours Other than Normal Working Hours

Each Adjustment Factor is Weighted The weighted percentages above are for the purpose of calculating an

Award Criteria Figure for the purposes of determining the lowest overall price submitted across all Applicants.

RFPQ # Contract Type # of Pre-Qualifications

Estimated Annual

Contract Volume

Base Term Option Term Self-

Performance Requirement

TBD-GC General Construction

Primary and Secondary

Award $750,000 1 Year 1 Year Not Applicable

Primary and TBD-MECH Mechanical Secondary $750,000 1 Year 1 Year 51%

Award Primary and

TBD-ELEC Electrical Secondary $750,000 1 Year 1 Year 51% Award

Primary and TBD-ROOF Roofing Secondary $750,000 1 Year 1 Year 51%

Award

• Prior to the RFPQ the Niagara Region Cannot– Identify or Commit to any Specific Project or Location– Identify or Commit to any Specific CTC Tasks or Quantities

RFPQ DETAILS-2

RFPQ DETAILS-3

• Differing Site Conditions or Changes in Scope – Priced from Construction Task Catalog® – Supplemental Job Order – No Negotiated Change Orders

• Filings and Permits – Fees paid for all Permits reimbursed 100% with 10% Markup

18

• Internet Based Software Provided with Contract – eGordian® Software Automates the Proposal Process

RFPQ DETAILS-4

CONTRACTOR LICENSE FEE

• Access to eGordian®, Construction Task Catalog®, other proprietary materials – Most advanced technology and data in the marketplace. – Paperless – Efficient – Tasks and prices input directly... no fishing through old files and

estimating books for costs • JOC process training • eGordian® software training • 24-hour support software support. • Included in the Contractor’s Adjustment Factor

– Consider with the Bid as an Overhead cost – 1% of Job Order Price

20

• Contractor must review and understand “Using the Construction Task Catalog®”

• Rules of the game • Make sure you get paid for all

appropriate tasks • Pages 00 – 1 to 00-8 of the CTC

UNDERSTANDING THE CONSTRUCTION TASK CATALOG®-1

Compare these prices

* Sample only

Include All Appropriate Tasks:

UNDERSTANDING _THE CONSTRUCTION TASK CATALOG®-2

32 16 23 00-0002

4” Cast In Place Concrete Sidewalk

SF

$5.06

400

$2,024.00

For Quantities 100 to 500, Add

SF

$2.04

400

$816.00

32 11 16 00-0015

4” Crushed Aggregate Base

SF

$0.63

400

$252.00

For Quantities Under 1000

SF

$0.18

400

$72.00

01 71 13 00-0003

Mobilize Backhoe

EA

$402.63

1

$402.63

31 23 16 36-0006

Excavation by Backhoe

CY

$3.75

11

$41.25

For Quantities Under 20 CY, Add

CY

$3.75

11

$41.25

31 23 16 36-0028

Loading Excess Materials

CY

$3.42

13.75

$47.03

For Quantities Under 20 CY, Add

CY

$3.42

13.75

$47.03

01 74 19 00-0029

Hauling to Dump Site

CYM

$0.51

207

$105.57

01 74 19 00-0021

Landfill Dump Fee

CY

$15.14

13.75

$208.18

$4,056.93

/400

$10.14

• Contractor must have permission from the Niagara Region to use a Non Pre-priced Task prior to submission

• Three (3) Quotes on vendors’ or subcontractors’ letterhead • Justification for less than three (3) Quotes • Contractor is paid the amount in the following formula:

NON PRE-PRICED TASKS

CALCULATING THE ADJUSTMENT FACTORS-1

Recommended Method • Use Historical Project Data

– Select a Completed Project • You Know Scope and

Direct Costs – Price Project From CTC – Add on Overhead and Profit – Calculate the Adjustment

Factor

Alternative Method • 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

24

• Multifamily Unit Renovation – Doors and Hardware

• Replace 12 interior doors, hinges and hardware • Doors shall be 3x7, solid core wood doors • Grade 2 locksets with knobs • Replace 2 push bar exist devices and door closers on exit doors

– Interior Lighting • Replace all lay-in troffer fixtures on first and second floors. 48 in total • Replace 4 exit fixtures • Replace 12 industrial fixtures in shop area

– Plumbing Fixtures • Replace 8 bathroom sinks, 8 faucets, and 8 toilets in men’s and women’s bathroom

in admin building and shop area • Replace 4 water fountains

– Replace Boiler • Demo existing boiler and as much piping and venting to accommodate new boiler.

Install a new 1028 mbh oil fired cast iron boiler. Weil-McLain Model 88. No access for packaged boiler. Must field assemble sections. Provide new piping as required.

– Normal Working Hours Apply

Sample Project Detailed Scope of Work


• Replace Boiler $ 47,500.00 • Doors and Hardware $ 9,250.00 • Lighting $ 16,750.00 • Plumbing $ 12,500.00 TOTAL = $ 89,000.00

Direct Cost of Work from Quotes or Estimates

• Replace Boiler $ 48,911.43 • Doors and Hardware $ 9,748.46 • Lighting $ 15,845.00 • Plumbing $ 14,986.76

TOTAL = $ 89,491.65

Direct Cost of Work from CTC

SAMPLE PROJECT – CTC PRICE VS. QUOTES


*Sample Only. Contractor to determine O/H & Profit. Prepare this calculation for more than one sample project.

A. Direct Cost of Work from Quotes $89,000.00

B. Overhead 10%* $ 8,900.00

C. Subtotal (Cost & O/H) $97,900.00

D. Profit 10%* $ 9,790.00

E. Subtotal (Cost & O/H & Profit) $107,690.00

F. Price From CTC $89,491.65

Adjustment Factor (= E / F) = 1.2034

SAMPLE PROJECT – PUTTING IT ALL TOGETHER CALCULATING THE ADJUSTMENT FACTORS-5

* Sample only

1 2 2 3 1

0 3 8 0 7 1 2 6 8 9

0 8 4 2 4 1 2 0 3 4

FILLING OUT THE FORM OF QUOTATION

CONSIDERATIONS & REVIEW

• 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 – 1% of each Job Order as a Contractor License Fee for eGordian®

software access

30

• Importance of Adjustment Factors – Determines lowest price AND – Used to price individual Job Orders – Price proposal total becomes the lump sum Job Order amount

CONTRACTOR ADJUSTMENT FACTORS-1

• Annual Price Adjustment – Applied annually on the JOC’s Anniversary Date – Based on CCI (City of Toronto) published by Engineering News

Record – Calculation (Based on RFPQ Due Date)

• Average CCI for Current Year = The % Increase or Decrease in Average CCI for Base Year Construction Costs

• Percentage x Original Adjustment Factors = New Adjustment Factors for Next Year

– Normal Working Hours – Other Than Normal Working Hours

THIS IS A ONE YEAR CONTRACT. IF THE CONTRACT IS EXTENDED FOR THE OPTION YEAR, THE FOLLOWING PRICE ADJUSTMENT PROVISION WILL BE USED

CONTRACTORS ADJUSTMENT FACTORS-2

RISKS OF LOW ADJUSTMENT FACTORS

• Leads to Arguments in Quote Package Review – Unsupportable Tasks – Exaggerated Quantities

• Leads to Delays in Job Order Development – Takes Longer to Review Job Order Quotation Packages

• Creates an Adversarial Relationship – Reduced Volume of Work – Will Shorten Contract – Lost Profitability

• No Second Chance to Improve Margin

33

REVIEW / KEY POINTS

• Focus on Total Potential Value of Contract • Evaluate Construction Task Catalog®

– Analyze Unit Prices – Know the General Guidelines for Using the CTC

• Contractor Performance Drives Volume – Responsive Service – Accurate Job Order Quotes – Safe and Clean Project Sites – High Quality Construction – On-Time Completion – On-Time Close Out

34

APPLICATION DATES AND DETAILS-1 • Sealed Applications due: Tuesday, October 25, 2016 at 2:00 PM, Local Time • Location:

Niagara Region The Purchasing Office – Corporate Services Department Campbell West Building 1815 Sir Isaac Brock Way Thorold, Ontario L2V4T7 Attn: Jeff Mulligan, Purchasing Services

• Each Applicant is required to submit SEVEN (7) complete sets and ONE

(1) electronic copy of their Application, including the Prequalification form. One set shall be an originally signed copy and will be labelled as such. The remaining six (6) copies may be photocopies and shall be identical in content with the original signed copy.

• If an Applicant chooses to submit for more than one Contract, the

Applicant will need to submit a separate Application package for each Contract. Each separate Application package should include all the documents listed in section 7, Article 2.2.

35

APPLICATION DATES AND DETAILS-2

QUESTIONS?

• Make Sure you Signed the Attendance Sheet

• All questions related to this Request for Prequalification are to bedirected in writing via email to:– Attn: The Purchasing Office

Niagara RegionCampbell West Building1815 Sir Isaac Brock WayThorold, Ontario L2V 4T7

• Submit questions by email to:– [email protected]

• All Addenda shall be posted on NR website and Biddingo.com

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mailto:[email protected]

Addenda #1 Niagara JOC RFPQ Meeting Presentation - v5 - accessible.pdfrequest for prequalification for Job Order Contracting services��general contractors, MECHANICAL CONTRACTORS, ELECTRICAL CONTRACTORS, AND ROOFING CONTRACTORS��Rfpq Meeting AgendaJOC Overview-1 Joc OVERVIEW-2JOC OVERVIEW Process JOC AdvantagesJOC Overview for Subcontractors JOC Overview FOR OWNERSJOC Overview – Time SavingsJOC owner benefitsJOC RFPQ Documents-1JOC RFPQ Documents-2JOC RFPQ Documents -3JOC RFPQ Documents-4JOC RFPQ documents-5Rfpq details-1RFPQ Details-2RFPQ Details-3 rfpq Details-4Contractor license fee Understanding the �Construction Task Catalog®-1Understanding _the �Construction Task Catalog®-2NON PRE-PRICED TASKSCalculating THE Adjustment Factors-1Sample Project Detailed Scope of Work�Calculating THE Adjustment Factors-3�Sample Project – CTC Price vs. QuotesSample Project – putting it all togetherFilling Out the Form of quotationConsiderations & ReviewContractor adjustment factors-1Contractors Adjustment Factors-2Risks of Low Adjustment FactorsReview / Key PointsAPPLICATION dates and details-1APPLICATION dates and details-2Questions?