REPORT TO THE CITY COUNCIL
September 20, 2018
FROM: KEVIN R. MEIKLE, Director of Aviation
Airports Department
SUBJECT
Title
Actions pertaining to Airports Department - Job Order Contracting for General Building Construction and HVAC Construction (Bid File 9460) (Council District 4)
1. Adopt finding of a Categorical Exemption pursuant to Section 15301 of the California Environmental Quality Act (CEQA) Guidelines
2. Award Job Order Contracting contracts for General Building construction to EXBON Development, Inc., Durham Construction Company, Inc., and Puma Construction Co., Inc. and for HVAC construction to EXBON Development Inc., and Mesa Energy Systems, Inc.
Body
RECOMMENDATION
Staff recommends that Council adopt a finding of a Categorical Exemption and award General Building - Job Order Contracting (JOC) contracts to EXBON Development, Inc., Durham Construction and Puma Construction and HVAC - JOC contracts to EXBON Development Inc., and Mesa Energy Systems, Inc.
EXECUTIVE SUMMARY
The Airports Department (Airports) has been using the JOC program, as offered by The Gordian Group, successfully since 2014. The JOC Program enables Airports to provide improved responsiveness on building maintenance and construction projects at competitive “local market” pricing. The JOC Program administers competitively bid fixed-unit pricing for construction tasks from local contractors which can be quickly accessed by Airports to perform needed building repairs, maintenance, alterations, installations and other construction services.
BACKGROUND
On December 17, 2009, and again on September 15, 2015, Council approved a 5-year contract with The Gordian Group, Inc., that allowed all City Departments to utilize the JOC Program for small building maintenance projects. On September 28, 2017, Council approved a JOC Program specifically for Facilities Management Division. Airports is seeking authorization to implement a similar JOC program to serve both Fresno Yosemite International and Fresno Chandler Executive Airports.
Airports annually budgets for building maintenance and renovation projects as well as various unforeseen facility repairs. The JOC Program allows Airports to utilize the successful bidders for timely execution of construction projects with improved quality at competitive rates. When submitting a bid for the JOC program, each bidder is agreeing to the unit cost per item in a catalog of construction tasks multiplied by their respective adjustment factors. The sum total of adjusted unit costs, as reflected in a Job Order, represents the total cost for a project including mobilization, permitting, overhead and profit.
On June 25, 2018, staff released the JOC specification to eleven builder exchanges and to fourteen bidders. On July 24, 2018, staff received bids from 6 bidders. Three of the bidders are General Contractors and three are HVAC Contractors. The bid specifications included an extensive unit price catalog of approximately 120,000 typical construction and maintenance construction tasks, pricing, and associated technical specifications. The bidders submitted adjustment factors which will be used with the pricing in the construction task catalog to prepare Job Orders for construction projects on an as needed basis.
The term of each contract is for an initial period of one year or a maximum of $1,000,000 whichever comes first and includes two one-year and/or $1,000,000 options. The Contractors are guaranteed to receive the opportunity to perform Job Orders totaling at least $25,000 during the base term of the contract.
The Agreement has been reviewed and approved as to form by the City Attorney’s Office.
ENVIRONMENTAL FINDINGS
Staff has determined that Class 1 Categorical Exemptions set forth in the California Environmental Quality Act (CEQA) Guidelines, Article 19, Section 15301 (Existing Facilities) is appropriate for this action, as the proposed projects involve the restoration or rehabilitation of existing facilities. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to action.
LOCAL PREFERENCE
Local preference does not apply because federal funding may be used.
FISCAL IMPACT
This Agreement will be funded through appropriations for specific projects and budgeted maintenance activities, which were included in the adopted FY2019 budget. There is no impact to the General Fund from this action.
Attachments:
- Bid Evaluation
- Sample Agreement