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HomeMy WebLinkAboutIR 8465 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8465 To the Mayor and Members of the City Council February 18, 2003 SUBJECT: JOB ORDER CONTRACTING says Council approval of M&C G-13480 on January 3, 2002 delegated authority to the City Manager to determine which of various construction contracting methods recently made allowable by Senate Bill 510 provides the best value to the City of Fort Worth (**NOTE**: Senate Bill 510 only applies to vertical construction). A Job Order Contract (JOC) is one of the delivery systems for building construction work made permissible for municipalities by this legislation. The purpose of this informal report is to advise Council that T/PW's Facilities Management organization intends to begin the process of acquiring a JOC. Following are some fast facts about JOC: • Term and Use of JOC: Under a JOC, a single construction contractor would be engaged for a 3 - 5 year period to execute small (under $200,000), recurring building construction and renovation tasks (e.g. carpet replacement, exterior and interior painting, office re-modeling, mechanical and electrical upgrades). • Basis of Award: The JOC would be awarded based largely on the contractor's unit price bids for these various tasks. Other factors -(e.g. past performance, personnel qualifications, project management plan)would also be evaluated in making a best value award. • Benefits: Under a JOC, the execution of candidate projects can be greatly expedited because the requirements for developing "bid-able" construction documents and for performing the solicitation and award processes are precluded. There are also, obviously, cost savings associated with eliminating these steps. • Limitations: JOC will not be used for all small construction projects. Project complexity will dictate the development of complete construction documents in many cases and, in others, open solicitation will be desirable for a variety of reasons. • M/WBE: The JOC will be developed with the full participation and agreement of the City's MNVBE staff to ensure that MNVBE issues are fully addressed in the terms of the contract. • Council Review: An M&C will be prepared prior to the issuance of a job order over$25,000. • Risk: The JOC will only guarantee the contractor a small amount of work (less than $50,000) so the risk to the City of entering into such an agreement will be negligible. Consultants and other municipal JOC users around the country indicate that even with this low guarantee the construction contracting community is willing to compete for a JOC award. Staff intends to first solicit for and engage a consultant to help develop the JOC. The consultant will be used to: • Develop a Fort Worth specific price guideline for the various construction tasks included in the JOC; and • Educate the local contracting community about the City's desires and intentions regarding JOC; and • Assist in bid evaluation and in working through any post-award issues that arise. Questions can be dir ted to T/PW's Facilities Manager, Greg Simmons, at 871-7862. /,. Gary W.Jacks n ty Manager D BY THE CITY MANAGER FORT WORTH,TEXAS