REPORT TO THE CITY COUNCIL
August 20, 2015
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
KEVIN MEIKLE, Director of Aviation
Airports Department
THROUGH: ROBERT N. ANDERSEN, PE, Assistant Director
Public Works Department, Capital Management Division
BY: DEBBIE BERNARD, Project Manager
Public Works Department, Facilities Management Division
SUBJECT
Title
Approve an Agreement in an amount not to exceed $300,000 with the Gordian Group, Inc., dba the Mellon Group, for the implementation of a Job Order Contracting Program
Body
RECOMMENDATION
Staff recommends that the City Council approve an Agreement in the amount not to exceed $300,000 with the Gordian Group, Inc., dba the Mellon Group, for the implementation of a Job Order Contracting Program and authorize the Public Works Director and Director of Aviation or designees to sign the contract on behalf of the City.
EXECUTIVE SUMMARY
The Job Order Contracting (JOC) Program offered by the Gordian Group enables the Facilities Management Division (FMD) and Airports Department (Airports) to provide prompt, responsive building maintenance or construction service to City Departments at competitive “local market” pricing. The JOC Program provides competitively bid fixed-unit pricing for construction tasks from local contractors which can be quickly accessed by the FMD or Airports to perform needed building repairs, maintenance or alterations; or other installation and construction services. Provided is an extensive unit price catalog of construction tasks, pricing, and associated technical specifications that contain approximately 120,000 individual items of typical construction and maintenance.
Under the Agreement, the City is not obligated to utilize the JOC contractor(s) for any project, the program provides a competitively bid option for projects and maintenance approved by the budget. However, when the City uses JOC contractor(s) it agrees to pay a license fee to Gordian Group of 5% of the value of the work orders up to $6 million and 1.95% thereafter.
BACKGROUND
On December 17, 2009, Council approved a 5 year contract with The Gordian Group, Inc. that allowed the Facilities Management Division to utilize the Job Order Contracting Program for smaller building maintenance projects. Staff now wishes to renew the contract for another five year period. The FMD and Airports work diligently each year to complete budgeted building maintenance and renovation projects as well as be responsive to the various approved unbudgeted facility service requests received from City Departments throughout the year. The proposed JOC Program will assist FMD and Airports to provide quality work, competitive costs, and improved responsiveness in completing small to medium-sized construction projects involving building maintenance and renovations.
The JOC Program employs the services of a prime contractor and a network of sub-contractors expert in various building construction tasks. The annual contracts are competitively bid based on firm fixed-unit pricing and indefinite quantities. Building repair, remodeling, and other construction projects are accomplished by issuance of individual work orders to the JOC Contractor.
The JOC Program proposed by the FMD and Airports will utilize an extensive unit-price catalog of construction tasks, pricing, and associated technical specifications that contain approximately 120,000 individual items of typical construction and maintenance. The pricing is developed in accordance with local construction costs (prevailing wages, equipment rates, material prices, etc.). The technical specifications, unit-price catalog, and JOC General Conditions are competitively bid for each contract needed by the City (e.g., plumbing prime contract; roof repair prime contract; etc.), and a respective job order contract is awarded to one JOC Prime Contractor. Execution of the recommended Agreement will authorize the Gordian Group to move forward the implementation of a JOC Program including preparation of the necessary documents for competitive bidding, in conjunction with the Purchasing Division, which includes technical specifications to establish local pricing.
Contractors will bid two sets of adjustment factors to the prices in the Construction Task Catalog that will be applied to the unit costs for work performed during normal business hours and for work performed outside of normal business hours. These factors, which include overhead and profit, apply to the designated items in the Construction Task Catalog. The basis for award is the lowest bid received.
Thereafter, as individual building construction/maintenance projects are identified, staff and the JOC Prime Contractor develop the scope of work for each individual project. All projects must meet the performance criteria defined by the FMD and Airports and as included in the general conditions and specifications of the annual JOC contract.
The Gordian Group, as a sole source provider, is the only firm in the nation that provides the full range of products and services necessary to develop, implement and support JOC Programs for public facility and infrastructure owners like the City of Fresno. Gordian’s JOC solutions are the result of 23+ years of research, development and continual improvements and are in use by more than 200 public owners throughout the U.S. and Canada. The Gordian JOC Solution is a highly specialized and proprietary solution consisting of the following components:
• eGordian web-based JOC applications configured to meet the needs of each client,
• Construction Task Catalog customized to include the construction tasks required by each client, with task prices based on the client’s local cost of labor, materials and equipment,
• Extensive implementation services and support materials to train client and construction contractor staff to properly utilize the system, and
• On-going technical maintenance and support services during the term of the contract, including 24/7 toll free software support.
All of Gordian’s products have been developed and are supported with in-house staff. All support services are performed with full-time Gordian employees. Gordian does not rely on third-party vendors and other service providers. As a result, Gordian is always extremely responsive to the needs of their clients.
Although other firms may provide JOC services, they do so by piecing together products and services from third-party vendors. Gordian has achieved a “sole source” provider status because JOC consulting is their only business. Their efforts are 100% dedicated to the JOC process. Gordian has been awarded numerous contracts on a sole source basis or as the only responsive and responsible respondent in a competitive procurement.
Since 1985, the Gordian Group has successfully implemented JOC Programs for over 90 federal, state, and local government agencies. Examples of public agencies that have established successful JOC Programs include the California State Universities, the Counties of Contra Costa, Sacramento, Ventura, San Diego, Los Angeles, San Luis Obispo, Kern, Santa Clara Roads and Airports, and the City and County of San Francisco.
Based on our research, staff believes The Gordian Group is uniquely qualified because no other firm exists that has the qualifications and experience to provide the products and services necessary to implement and support a successful JOC Program for the City of Fresno. Further, since The Gordian Group is the current provider of the City of Fresno’s JOC Program, the new contract would enable the City of Fresno to continue its JOC Program and utilize its existing JOC contracts without interruption.
Establishment of a JOC Program will allow the FMD and Airports to provide quality work, at competitive costs, with improved responsiveness in completing small to medium-sized construction projects involving building maintenance and renovations. Additionally, during periods of peak demand, the Division’s staffing can be supplemented through the prime contractor and his/her sub-contractors.
Staff recommends that the City Council approve an Agreement in an amount not to exceed $300,000 (the amount paid will be derived from the license fee of 5% of work order values) with the Gordian Group for the implementation of a Job Order Contracting Program. The Agreement will be funded through appropriations for specific projects and budgeted maintenance.
The Agreement has been reviewed and approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
In accordance with California Environmental Quality Act (CEQA) Guidelines, Section 15378, this professional services contract does not qualify as a “project” for the purposes of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because The Gordian Group is uniquely qualified.
FISCAL IMPACT
The total recommended Agreement cost will not exceed $300,000 and is based upon a total accumulated value of work orders of up to $6 million for the five-year term. In the event staff requests Council to amend the Agreement to increase the amount of compensation available under the Agreement during the five-year term to allow for work orders in excess of $6 million, the City will pay Gordian Group a licensing fee of 1.95% of the value of such work orders. The City is not obligated to utilize the JOC Program for any project under the recommended Agreement. The Agreement will be funded through appropriations for specific projects and budgeted maintenance.
Attachments:
Agreement with the Gordian Group, Inc.
Uniquely Qualified memo