construction contract documentation requirements update · activity name construction contract...

ACTIVITY NAME

Construction Contract Performance & Documentation Requirements Update

Construction Contract Cost & Schedule AdherenceConstruction Management System (CMS) eFilesRevised Payments for Materials ClauseDD Forms 1354eOMSI

Glenn H. Higuchi, P.E.Construction DivisionNAVFAC Pacific Capital Improvements1 December 2010

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Construction Contract Cost & Schedule Adherence Performance Improvement

Construction delivery “on-time & within budget”No more than 5% cost & 10% schedule growth

•Improve pre-award packages to reduce RFIs, modifications & scope creep

–Maximized use of performance-based D-B contracts–Betterments & enhancements in RFP’s–Enhanced Design QC/QA process–Improved constructibility review during RFP development–Use of proper contract durations–Reduction of “customer requested” modifications

•Cost-loaded Schedules, Schedule Payments & Schedule Variance Control (SVC) – all contracts > $750,000

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INVOICE DATE

ACTUAL EARNINGS (AE)FROM EARNED VALUE REPORT

PLANNED EARNINGS (PE)BASED ON BASELINE EARLY START

EARLY WARNING INDICATORS:AHEAD OF SCHEDULE

AE > PE and SPI >1 ON SCHEDULE

PE = AE and SPI = 1BEHIND SCHEDULE

PE > AE and SPI < 1

SCHEDULE PERFORMANCE INDEX (SPI)

SPI = AE/PE

MONITOR SCHEDULE VARIANCE TO MEASURE IMPROVEMENT

2 mos. behind WIP projection

Construction Contract Cost & Schedule AdherencePerformance Improvement : SVC

Presenter

Presentation Notes

Schedule monitoring tool for Contractor and FEAD/ROICC Actual earned less than plan Indicates that activities are behind schedule Increasing gap between Actual and plan (Schedule Variance) indicates that the project is falling farther behind schedule

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•Performance Incentives for Construction Contractors–Help us achieve on-time & within budget delivery!

Cost growth < 5% of original contract amountSchedule growth <10% to original contract duration

–Favorable CCASS performance evaluations for good safety, cost & schedule performance

–Performance awards for safety, cost & schedule achievementsCCASS Performance Evaluations

–Important for Source Selection past performance evaluation–Weighting for safety, cost & schedule performance desirable but…–Encourage raters to recognize safety, cost & schedule performance–Past Performance Questionnaires (PPQs) if no CCASS Performance Evaluations

–Current CCASS information: “NAVFAC PERFORMANCE EVALUATION SYSTEM – Web-Based ACASS/CCASS” summary handout

Construction Contract Cost & Schedule AdherencePerformance Improvement

Presenter

Presentation Notes

Current CCASS info summarized on “NAVFAC PERFORMANCE EVALUATION SYSTEM – Web-Based ACASS/CCASS” handout

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•Performance Incentives for Construction ContractorsPerformance Awards

–Encouraging awards when performance meets or exceeds safety, cost & schedule adherence goals!

–Even if all other Performance Evaluation elements are only satisfactory

Four levels of performance recognition:–FEAD/ROICC Letter of Appreciation–NAVFAC Hawaii, NAVFAC Marianas & NAVFAC Far East Commanders’ Certificate of Appreciation

–NAVFAC Pacific Commander’s Certificate of Appreciation–NAVFAC Commander’s Certificate of Commendation


Presenter

Presentation Notes

Construction Cost and Schedule Adherence Performance Improvement • Contractor being recognized today with NAVFAC Pacific Commander’s performance awards on two contracts: ~$1M contract with no cost or time increase and completed one month ahead of schedule ~$3M contract with 15% cost increase but only 2.5% schedule increase (cost and time increase due to CREQ changes).

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•Performance Incentives for Construction ContractorsConstruction Safety – Priority for all

–Separate Safety Source Selection Evaluation Factor•EMR (Experience Modification Rate)•OSHA DART (Days Away from Work, Restricted Duty, or Job Transfer) Rate

•Technical Approach for Safety–Subcontractor minimum safety performance safety criteria

•Pilot only at NAVFAC SouthEast–NOT part of Source Selection Evaluation Factor(s)–Specified minimums. No subcontractor with:

• Effective EMR > 1.10• OSHA DART Rate > 3.0• Certificates of EMR ratings & OSHA DART rates for all subcontractors –Maintained by Contractor’s SSHO


Presenter

Presentation Notes

EMR as computed by National Council on Compensation Insurance (NCCI) or if not available, as computed by state agency’s rating bureau where subcontractor is registered DART rate = N/EH X 200,000. N = # of injuries/illnesses w/days away, restricted work, or job transfer EH = total hours worked by all employees during most recent, complete calendar year 200,000 = base for 100 full-time equivalent workers (40 hours/week, 50 weeks/year) Contrator may submit written request where specified acceptable EMR range or DART rate cannot be achieved by specific subcontractors whose performance is uniquely critical to project

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Construction Management System (CMS) eFiles

WebCM – Shutdown November 30, 2008Local procedures for electronic document submissionNew NAVFAC Electronic Document Management System (EDMS) - CMS “eFiles” in development

•Will reside on NAVFAC servers–External Certification Authority (ECA) Program PKI Certificate will be required (like ACASS/CCASS)

–Access CMS eFiles via NAVFAC Single Sign-on (SSO) account

•Uses Adobe LiveCycle• Implementation delayed to sometime in 2011 due to LiveCycleproblems

•On-line training manuals have been developed

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Construction Management System (CMS) eFilesNAVFAC Single Sign-on (SSO) Site

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Construction Management System (CMS) eFileseFiles Functionality

An Electronic Filing CabinetDefined folder structureNo workflow (linked steps performed sequentially or in parallel)Each contract will have a permission matrix, similar to WebCM

–Government will control user access–Permissions limit what folders user can see and access

Fillable Adobe pdf forms already in use–Production Report–Quality Control Report–Initial Phase Checklist–Preparatory Phase Checklist

–Transmittal/Review/Approval Form–Request for Information–Rework list–Test Log

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Construction Management System (CMS) eFilesForms

• Forms are expandable

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Construction Management System (CMS) eFilesExternal Certification Authority (ECA) Certificate

•ECA Certificates are purchased directly from the vendors•Approved vendors:

–Operational Research Consultants, Inc. (ORC)http://www.eca.orc.comEmail: [email protected]: 1-800-816-5548

–Verisign, Inc.http://www.verisign.com/authentication/government-authentication Email: [email protected]: 650-426-5310

–IdenTrust, Inc.–http://www.identrust.com/certificates/buy ieca.htmlEmail: [email protected]: 888-882-1104

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Previous Price and Payment Procedures Specifications1.7 PAYMENTS TO THE CONTRACTORPayments will be made on submission of itemized requests by the Contractor which comply with the requirements of this section, and will be subject to reduction for overpayments or increase for underpayments made on previous payments to the Contractor.

Basis for Contracting Officer's consideration to allow progress payment for material delivered on the site (but not installed) and for completed preparatory work, as authorized under FAR 52.232-5(b), shall be (1) major high cost items and (2) long lead special order items. Materials that will not be paid for prior to installation include, but are not limited to, bulk quantities such as nails, fasteners, conduits, gypsum board, etc. In the request for progress payment, such items shall be specifically identified in the Contractor's estimates of work submitted for the Contracting Officer's approval in accordance with paragraph entitled "Schedule of Prices" above. At the time of invoicing, the amount billed shall be supported by documents establishing its value.

Revised Payments for Materials Clause

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Revised NAVFAC Price and Payment Procedures Specifications•UFGS-01 20 00.00 20 (D-B-B) & UFGS-01 20 00.05 20 (D-B)

–Included in NAVFAC Pacific contract specifications–Pending NAVFAC UFGS release (Dec 2010 & Feb 2011)Progress payments may be made for materials that are in transit, stored off construction sites, or delivered on the siteConditions:

•In transit or stored in Hawaii, Guam, Puerto Rico or Continental U.S. (Other locations by written approval)

•Materials adequately insured and protected from theft & exposure•Written consent of surety•Separately identified in pay request estimate•Supported by documents establishing value and title•FAR 52.232-5(b) Payments Under Fixed Price Construction Contracts


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Revised NAVFAC Price and Payment Procedures Specifications•Progress payments for offsite, onsite and in transit materials:

–Major high cost, long lead, special order or specialty items–Not susceptible to deterioration or physical damage in storage or in

transit to the construction siteExamples:

Structural steel, non-magnetic steel, non-magnetic aggregate, equipment, machinery, large pipe and fittings, precast/prestressed concrete products, plastic lumber (e.g., fender piles/curbs), high-voltage electrical cables

•Not acceptable for progress payment – Consumable materials such as:Nails, fasteners, conduits, gypsum board, glass, insulation, wall coverings

Presenter

Presentation Notes

Draft NAVFAC PRICE AND PAYMENT PROCEDURES SPECIFICATIONS paragraph: 1.6.2 Payment for Onsite and Offsite Materials Progress payments may be made to the contractor for materials delivered on the site, for materials stored off construction sites, or materials that are in transit to the construction sites under the following conditions: a. FAR 52.232-5(b) Payments Under Fixed Price Construction Contracts. b. Materials delivered on the site but not installed, including completed preparatory work, and off-site materials to be considered for progress payment shall be major high cost, long lead, special order, or specialty items, not susceptible to deterioration or physical damage in storage or in transit to the construction site. Examples of materials acceptable for payment consideration include, but are not limited to, structural steel, non-magnetic steel, non-magnetic aggregate, equipment, machinery, large pipe and fittings, precast/prestressed concrete products, plastic lumber (e.g., fender piles/curbs) and high-voltage electrical cable. Materials not acceptable for payment include consumable materials such as nails, fasteners, conduits, gypsum board, glass, insulation, and wall coverings. c. Materials to be considered for progress payment prior to installation shall be specifically and separately identified in the Contractor's estimates of work submitted for the Contracting Officer's approval in accordance with [Schedule of Prices][Earned Value Report] requirement of this contract. Requests for progress payment consideration for such items shall be supported by documents establishing their value and that the title requirements of the clause at FAR 52.232-5 have been met. d. Materials are adequately insured and protected from theft and exposure. e. Provide a written consent from the surety company with each payment request for offsite materials. f. Materials to be considered for progress payments prior to installation shall be stored either in Hawaii, Guam, Puerto Rico, or the Continental United States., Other locations are subject to written approval of the Contracting Officer.

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DD Forms 1354

“Draft” DD Form 1354 Completed by 100% Design Review Design-Bid-Build: Developed by NAVFAC Design Architect/Engineer Design-Build: Developed by Construction Contractor

“Interim” DD Form 1354 Construction Contractor Prepares Completed 30 days prior to Beneficial Occupancy Date (BOD) No BOD taken without Interim DD Form 1354 for new facilities

“Final” DD Form 1354 Construction Contractor updates Interim for Final DD Form 1354When all costs are finalized (Financial Closeout)

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DD Forms 1354Sample

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•New draft eOMSI NAVFAC specification section–Electronic operation & maintenance support information (eOMSI) –Detailed as-built information for facility operation, maintenance & repair

in Data & Document files:•Preformatted Excel spreadsheet workbook Data files (see handout for draft excerpted sample)

Equipment DataNon-Equipment Data/Component Inventory Management Unit (CIMU)

•Operation & Maintenance Manual (PDF, CADD & MS Word Doc files)Facility, Primary System & Product InformationElectronic OMSI manuals (but bound hardcopies may still be specified)

–eOMSI Submittals: Preliminary at 50% construction completion100% Prefinal at 45 days prior to BODFinal at 30 days after BOD

eOMSIElectronic Operations & Maintenance Support Information

Presenter

Presentation Notes

Initially MILCON project contracts but desired by NAVFAC Public Works for ALL projects Being inserted into Guam contracts eOMSI data download required before facility project closeout

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Construction Contract Cost & Schedule Adherence –Performance Improvement• Pre-award contract package improvements• Enhanced Construction Schedule Management with SVC• Incentives for good safety, cost & schedule performanceFavorable CCASS Performance EvaluationsPerformance Awards

Construction Management System (CMS) eFilesRevised Payments for Materials ClauseDD Forms 1354eOMSI

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Construction Contract Performance & Documentation Requirements Update

construction contract documentation requirements update · activity name construction contract...

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