maintenance, repair, and operations joc program...dec 13, 2016 · maintenance, repair, and...

Maintenance, Repair, and Operations JOC Program

Pre-Proposal Meeting

CSP #16-11-07 Building Automation Systems

CSP #16-11-08 Glass and Glazing Service

CSP #16-11-09 HVAC / MechanicalCSP #16-11-10 Plumbing

December 13, 2016

Agenda

Conroe ISD MRO JOC ProgramGordian MRO OverviewMRO Contract DocumentsMRO ProcessSolicitation DetailsUnderstanding the Maintenance Procurement CatalogCalculating the ProposalsProposal Considerations & ReviewContractor Adjustment FactorsRisk of Low Adjustment FactorsQuestions

Conroe Gordian MRO History

Typical Uses of MRO include:• Facility Repair

• Straightforward Work Items

• Playground Maintenance

• Paving Maintenance

• HVAC Maintenance

Gordian MRO is an Umbrella Contract

MRO Overview – Contractor Benefits

Why MRO Works for Contractors• Good work is rewarded with more work

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

• Long-term relationship with Conroe ISD• Good work is rewarded with more work• Develop partnership with Conroe ISD

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

MRO Overview

Why MRO Works for Conroe ISD• A Fixed Priced, Fast Track Procurement Process• Work Orders are Lump Sum• The Ability to Accomplish numerous Individual Projects with a Single Competitively Bid Contract• On-Call Contractors Ready to Perform multiple Projects at Different Locations for Competitively Bid Prices• Contractor Has A Continuing Financial Incentive To Provide

• Responsive Services• Accurate Proposals• Quality Work on Time• Timely Close Out

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

How is Gordian MRO Bid?

Bid Documents:• Conroe ISD Bid

Documents –• 4 individual sets

• MRO Maintenance Procurement Catalog

MRO Contract Documents

Front End Documents

• Notice to Proposers

• Instructions To Proposers

• Bid Forms• General

Conditions• Attachments

MRO Contract Documents

Maintenance Procurement Catalog • 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

Gordian MRO Contract Documents

• Maintenance and repair specific

• Actual, local costs

Maintenance Procurement Catalog

MRO Process - How is MRO Bid & Awarded?

Contractor bids Adjustment Factors: Normal Working Hours (Applies to all tasks in the Catalog) Other Than Normal Work Hours (Applies to all tasks in the Catalog) Non Pre-Priced

Proposal Form Description Points

A Award Criteria Figure based on weighted Adjustment Factors 30

B Experience and Reputation 20

C Safety Record 10

D Financial Capability 10

E Personnel 20

F Prior Experience with Conroe ISD 10

Total Points 100

Conroe ISD MRO Contracts are Awarded Based on Best Value

MRO Process – How is Work Done?

Owner approvesOwner contacts shall

Owner

Solicitation Details

At time of bidding, Conroe ISD Cannot• Identify or Commit to any Specific Project or Location• Identify or Commit to any Specific MRO Tasks or Quantities

Base Term with Option PeriodsNo Minimum Contract ValueNo Maximum Contract ValueContractor Performance Drives Volume of Work


Contracts may be awarded for the Trades listed in this table.

CISD may award any number of contracts per Trade or elected not to award Contract(s).

A proposer may submit individual Proposals for more than one Trade. A proposer shall not submit more than one Proposal for the same Trade.

CSP# / TradeContractor

LicenseRequired

Minimum Contract

Value

Maximum Contract Duration

(Sum of Terms)

CSP #16-11-07MRO JOC Program – Building Automation Systems

No None 5 years

CSP #16-11-08MRO JOC Program – Glass and Glazing

No None 5 years

CSP #16-11-09MRO JOC Program – HVAC / Mechanical

Yes None 5 years

CSP #16-11-10MRO JOC Program – Plumbing

No None 5 years


Differing Site Conditions or Changes in Scope• Priced from Maintenance Procurement Catalog• Supplemental Work Order• No Negotiated Change Orders

Filings and Permits• Fees paid for any and all Permits reimbursed 100% - No Markup


Internet Based Software Provided with Contract

eGordian® Software Automates the Proposal Process

Understanding the MRO Maintenance Procurement Catalog

Contractor must review and understand “Using the MRO Maintenance Procurement Catalog”

Rules of the gameMake sure you get paid for all appropriate tasksPages 00 – 1 to 00-8 of the MRO Maintenance

Procurement Catalog

Understanding the Maintenance Procurement Catalog

Include All Appropriate Tasks:

Compare these pricesSample only

Non Pre-priced Tasks

Contractor must have permission from CISD to use a Non Pre-priced Task prior to submission

Three (3) Quotes on vendors’ or subcontractors’ letterhead – Justification req’d for less than 3 quotes

Contractor is paid the amount in the following formula:

For Non Pre-priced Tasks Performed with Contractor's Own Forces:A = The hourly rate for each trade classification not in the MRO Maintenance Procurement Catalog multiplied by the quantity;B = The rate for each piece of Equipment not in the MRO Maintenance Procurement Catalog multiplied by the quantity;C = Lowest of three independent quotes for all materials.Total for a Non Pre-priced Tasks performed with Contractor’s Own Forces = (A+B+C) x Non Pre-Priced Task Adjustment Factor.

For Non Pre-priced Tasks Performed by Subcontractors: If the Non Pre-priced Task is to be subcontracted, the Contractor must submit three independent quotes for the work.D = Lowest of three Subcontractor QuotesTotal Cost for Non Pre-priced Tasks performed by Subcontractors = D x Non Pre-Priced Task Adjustment Factor.

Methods to Calculate the Adjustment Factors

Use Historical Project Data• Select a Completed Project

• You Know Scope and Direct Costs

• Price Project From Maintenance Procurement Catalog

• Add on Overhead and Profit• Calculate the Adjustment Factor

Create a Representative Project• Create a Scope of Work• Get Sub Quotes or Estimate Cost• Price Project From Maintenance

Procurement Catalog• Add on Overhead and Profit • Calculate the Adjustment Factor

Recommended Method Alternative Method

Sample Project 1 – SidewalkDetailed Scope of Work

Location: Martha Johnson Library• Brief Scope: Replace concrete sidewalk at the rear exit• Detailed Scope: Demo existing concrete and base as marked. Replace with 4” Cast In Place

Concrete over 4” Crushed Aggregate Base. Broom finish.• Normal Working Hours Apply

Sample Project 1 - Sidewalk

Sample Project 1Price Proposal Page 1

Sample Project 1 - Sidewalk


Sample Project 1 - Catalog Price vs. Quotes

Demo Existing Sidewalk & Base $ 480.07

Hauling & Dump Fee $ 317.16

Install new Concrete Sidewalk $ 2,264.00

Total: $ 3,061.23

Demo Existing Sidewalk & Base $ 450.00

Hauling & Dump Fee $ 350.00

Install new Concrete Sidewalk $ 2,100.00

Total: $ 2,900.00

Direct Cost of Work from Maintenance Procurement Catalog

Direct Cost of Work from Quotes or Estimates

Sample Project 1 –Putting it all Together

A. Direct Cost of Work from Quotes $ 2,900.00

B. Overhead 10%* $ 290.00

C. Subtotal (Cost & O/H) $ 3,190.00

D. Profit 10%* $ 319.00

E. Subtotal (Cost & O/H & Profit) $ 3,509.00

F. Price From Maintenance Procurement Catalog $ 3,061.23

Adjustment Factor (= E / F) = 1.1463

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

Filling Out the Proposal Form

1 1 4 6 3

1 1 9 0 0

1 1 6 5 0

0 3 4 3 9

0 7 1 4 0

0 1 1 6 5

1 1 7 4 4

Sample only

Sample Project 2 – PlumbingDetailed Scope of Work

Location: WBN Science Center• Brief Scope: Investigate and Repair Sewer Line • Detailed Scope:

• Remove and reinstall one wall hung toilet to use this as cleanout port for auger. Clean two 4” sewer lines with sewer auger machine. Camera inspect two separate 4 “ sewer lines.

• Women’s Restroom: Saw-cut into existing block/tile walls and install new 4” galvanized cast iron cleanout. Install 36”x36” fire rated access panel with cam latch at cleanout.

• Men’s Restroom: Demo one existing 4” cleanout and install new 4” galvanized cast iron cleanout. Install 36”x36” fire rated access panels with cam latch at cleanout.

• Normal Working Hours Apply

Sample Project 2 - Plumbing


Sample Project 2 - Plumbing

Sample Project 2Price Proposal Page2

Sample Project 2 - Catalog Price vs. Quotes

Site Work $ 481.28

Openings $ 938.42

Plumbing $ 1,739.52

Utilities $ 2,243.97

Total: $ 5,403.19

Direct Cost of Work from Maintenance Procurement Catalog

Direct Cost of Work from Quotes or Estimates

Site Work $ 450.00

Openings $ 925.00

Plumbing $ 1,650.00

Utilities $ 2,200.00

Total: $ 5,225.00

Sample Project 2 –Putting it all Together

A. Direct Cost of Work from Quotes $ 5,225.00

B. Overhead 10%* $ 522.50

C. Subtotal (Cost & O/H) $ 5,747.50

D. Profit 10%* $ 574.75

E. Subtotal (Cost & O/H & Profit) $ 6,322.25

F. Price From Maintenance Procurement Catalog $ 5,403.19

Adjustment Factor (= E / F) = 1.1701

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

Filling Out the Proposal Formfor Sample Project 2

1 1 7 0 1

1 2 0 0 0

1 1 8 0 0

0 3 5 1 0

0 7 2 0 0

0 1 1 8 0

1 1 8 9 0

Sample only

Bid Considerations

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 Maintenance Procurement Catalog tasks vary• Some projects are more profitable than others• Maintain a fully functioning office• Maintain a fully functioning staff• Hold required licenses, if required

Contractor Adjustment Factors

Importance of Adjustment Factors• Determines lowest proposed price AND• Used to price individual Work Orders• Price Proposal total becomes the lump sum Work Order Price

Total Work Order Price

Contractor Adjustment Factor

Annual Price Adjustment• Applied annually on the Contract Award’s Anniversary Date• Based on CCI for the average of the twenty cities published by Engineering News Record• Calculation:

• 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• NPP Adjustment Factors are Fixed for the Duration of the Contract

Risks of Low Adjustment Factors

Leads to Arguments in Proposal Review• Unsupportable Tasks• Exaggerated Quantities

Leads to Delays in Work Order Development• Takes Longer to Review Proposals

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

No Second Chance to Improve Margin

Review / Key Points

Evaluate Maintenance Procurement Catalog• Analyze Unit Prices• Know the General Guidelines for Using the Catalog

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

Proposals

Sealed bids due: Tuesday January 17, 2017 at 2:00 PM

Conroe ISD PURCHASING OFFICE2nd Floor, Building A3205 W. DavisConroe, TX 77304RFP #16-11-__ Maintenance, Repair, and Operations JOC Program, (insert trade)

ONE (1) fully executed paper bid document, ONE duplicate copy and ONE (1) electronic version on a USB (flash/thumb) drive or CD

proposalsProposals shall include:

Cover page with the following: Contractor’s name, address, phone number, Name of Primary Contact, Contract TradeCertification Sheet of this Instructions to ProposersForm A - Adjustment Factor Proposal FormForm B - Experience and ReputationForm C - Safety RecordForm D - Financial CapabilitiesForm E - PersonnelForm F - Prior Experience with Conroe ISDForm 1295 - Certificate of Interested PartiesA copy of current insurance coverage as identified in the Notice to ProposersDebarment FormEdgar Vendor Certification FormFelony Conviction NotificationNon Collusion StatementA duplicate set of all bid documentsAn electronic copy of all bid documents on CD or USB flash drive

Questions?

Make Sure you Signed the Pre-bid Sign-In Sheet

Proposers can view and obtain Contract Documents by accessing the Conroe ISD website at:

http://purchasing.conroeisd.net/eBidding

All questions shall be submitted in writing (No phone calls) by Friday December 16th , 2016 by 12pm CST:

Rick ReevesConroe Independent School DistrictPurchasing Department3205 W. Davis St.Conroe, TX 77304

[email protected]

mailto:[email protected]