A/B LETTER PROCESS

CONDUCTED FOR PROJECT EXECUTION

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PUBLIC PROJECT CONSTRUCTION

SERVICES

• Under $15,000 maximum• Painting and repainting,

alteration, improvement, demolition, renovation, erection, construction, reconstruction and repair

• Public Contract Code Section 20111 (b)

MAINTENANCE AND EQUIPMENT REPAIR

• $83,400 maximum – adjusted annually by the State Superintendent of Public Instruction

• Routine, recurring and usual work

• Public Contract Code Section 20115

A/B LETTERS ARE…

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"A" LETTE

RS

TIME AND

MATERIAL

•Obtains the agreed rate for the time and materials to be charged, a maximum amount not to be exceeded prior to starting work.

•When to use-Scope is not fully defined (i.e. plumbing projects)

FIXED PRICE

"B" LETTERS WITH PREDETERMIN

ED SCOPE

S OF WORK

•Establishes a total price for work to be performed.

•When to use- Scope is fully defined.

DEFINITIONAn A/B Letter Contract is an Informally Bid Contract as defined by California Public Code (Public Contract Code 20111-20118.4).

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A/B LETTERS ARE NOT…

A change order to formal contractsTo be used for the procurement of goodsTo be used to contract for professional services

(Architects, Engineers and those services requiring specialized training like inspectors, material testers, etc.)

To be used for painting projects on Maintenance & Repair Projects (over $15,000)

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SPECIAL CIRCUMSTANCES

It is the intent of the District to solicit 3 bids whenever

possible.

Exceptions are as follows: Maintaining integrity of existing warranty Emergency Sole Provider Cost Benefit to District

A Justification Memo must be approved prior to awarding

the contract.

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CALIFORNIA CODE

Section 20111of the Public Contract codes establishes two dollar thresholds for the type of expenditure:

1. Public Project Construction Services

$0 to $14,999.99 (under $15,000)

2. Maintenance & Equipment Repair

$15,000 to $83,400(as of 2013 subject to revision annually)

Bid splitting (awarding two informal contracts) to circumvent the dollar threshold established by Public contract Codes (stated above) is a prosecutable ILLEGAL activity (i.e ramp installation).

Contractor must have an appropriate active Contractor’s license.

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A/B LETTER PROCEDURES

http://www.laschools.org/employee/ Login Click on FSD Policies and Procedures & Go to 8.5

http://www.laschools.org/documents/download/maintenance_&_operations/awms_documents/maximo_7.5/procurement/Maximo_7.5_AB_Letter_Guide_-_9-9-13.docx.pdf?version_id=310468677 7

OVERVIEW

Planning Phase Environmental (Asbestos and/or Lead) Planning Package Advertising Pre-Award Bid-Walk Bid & Award Verification of Lowest Responsive Bidder’s Documentation Contract/Award Documents for Approval Construction Documents Contract Closeout

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PLANNING PHASE

Coordinates with school on work access and hours

Obtains Fair Cost Estimate (FCE)

Obtains needed plans and specifications

Obtains funding source from Program Controls. If applicable, obtain enough funding to cover contract, ATU and Inspection costs.

OAR visits site, confirm findings and drafts scope of work

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ENVIRONMENTAL

Documents http://www.laschools.org/employee/ Login Click on FSD Policies and Procedures & Go to 17.3 Forms Log Request for Environmental Assessment ATU Approval Request to Advertise 10

PLANNING PACKAGE OAR PREPARES REQUEST

FOR CONTRACT INITIATION (RCI) and submits to Regional Representative.

Must be filled completely with funding source and if applicable bid walk date and time.

– ATTACH FAIR COST ESTIMATE

– ATTACH ATU APPROVAL, REQUEST TO ADVERTISE

– ATTACH SCOPE OF WORK

(Word document)

– ATTACH PLOT PLAN, DRAWINGS AND SPECIFICATION (if applicable)

– CONFIRMATION OF CONTRACTOR PHONE/E-MAIL BIDS, if applicable

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ADVERTISING

Projects under $15,000 do not require advertising

OAR contacts at least three (3) Safety Prequalified Licensed contractors via phone, fax or email Prepares Bid form (Confirmation of Contractor Phone, Fax or E-mail Bids)

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ADVERTISINGRegional representative advertises bid-walk

http://mo.laschools.org/fis/existing-facilities/m-and-o/bidwalks/

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DOLLAR THRESHOLDS

ALL A/B Letter contracts require Safety Prequalification, Insurance and License Verification. Additional documents are required when the contract reaches certain thresholds.

Under $15,000 (Public Construction Project): NO additional documents.

$15,000 and Over (Maintenance & Repair Project): • Performance Bond• Prevailing Wage• Weekly Certified Payroll

$20,000 and Over and Bond Funded (Maintenance & Repair Project):• Project Stabilization Agreement –Letter of Assent

$30,000 and Over (Maintenance & Repair Project):• Division of Apprenticeship Standards

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PRE-AWARD PRINT PACKAGE

Regional representative receives RCI from OAR with required documentation, then enters Work Order and Request for Quotation (RFQ) in Maximo.

Generates the following documents for Advertised projects:• BID ENVELOPE • BID FORM

• Sealed Bid Form (bids $15,000 and over)

• NOTICE TO BIDDERS RE: INSURANCE & BOND REQUIREMENTS• NOTICE TO BIDDERS RE: SAFETY PREQUALIFICATIONS• CERTIFICATION OF INSURANCE FORM• PREVAILING WAGE CERTIFICATE (bids $15,000 and over)• CODE OF ETHICS POLICY• LEAD RESULTS (if applicable)• ASBESTOS RESULTS (if applicable)• PERFORMANCE BOND FORM (bids $15,000 and over)• PROJECT STABILIZATION AGREEMENT/LETTER OF ASSENT (if applicable)• BID-WALK SIGN IN SHEET

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BID-WALK

Introduction and Background

a. Attendees Sign Bid-Walk Sign In Sheet. b. Introductions (OAR, CPM, Labor Compliance, Contractor, etc.)

Safety and Health

a. Review Roles and Responsibilities for Site Safety. b. Review Workplace Conduct c. Alcoholic Beverages Are Not Permitted on the Project Site. d. Contractor to Ensure Employees Are Dressed Properly and Not Use Profane Language.

e. No Tobacco Use is Allowed on OWNER Property. f. Restrict Operations Areas and Traffic Control

g. Contractor Shall Provide Proper Flagmen when Impacting Street Traffic and Crossing Sidewalks, and Whenever Driving on Site. h. Construction Debris Shall Not Accumulate and Shall be Removed Offsite Daily by Contractor. i. Barricades to be Installed as Required to Insure the Safety of Pedestrian. j. Contractor to Control and Mitigate Dust Caused by Construction Activity as Required by Contract Documents.

Environmental

a. Review CONTRACTOR’S Proposed Usage Of Hazardous Materials. b. General Hazardous Material Handling. c. Asbestos and Lead Reports; Coordination with Environmental Consultant (If applicable)

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BID-WALK

Construction a. Review Contract Scope of Work. b. Temporary Facilities

• Lay Down Area and Storage Areas• Trash Removal (offsite)• Site Access (including deliveries)• Parking Availability (On & Off-site, Restrictions, Etc.)• Housekeeping• Security• Contractor’s Normal Working Days

c. Coordinating Work Areas with Others• Coordination of Project Work with School Administrator• Coordination of Project Work with Other School Site Projects/Contractors

d. Telephones – DO NOT USE SCHOOL DISTRICT PHONES!!!!e. Permits – Offsite Improvement Permit (BC Permit) & Inspection/Approval Requirements (if applicable)f. Quality Control and Inspection

PSA Agreement (Contract > $20,000 and Bond Funded) a. Review PSA Agreement regarding: Letter of Assent

Construction Schedule and Progress Reporting a. Critical Work Sequencing b. Proposed date for Construction start is

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BID-WALK

Testing and Inspection

a. Request for Inspection by OAR.

Contractor Payments

a. Review of Invoice for Payment Processb. Progress Payment Schedule and Progress Measurement (If progress payments apply)

Contract Management

a. Correspondence• Contractor Shall Send All Correspondence to the DISTRICT REPRESENTATIVE

b. Contract Compliance• Contractor/Subcontractors (if applicable) to Review Contract Documents Prior to Starting Work.

c. Claims Process• Contractor Must Submit Claims To: Los Angeles Unified School District

Procurement Administration

8525 Rex Road, 2nd Floor

Pico Rivera, CA 90660

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BID & AWARD

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BID & AWARD OAR submits Bid Sign in Sheet to Regional Representative after Bid-Walk

Any Addition or Clarification of Scope

determined after the Bid-Walk must be sent to all attendees within 24 hours of the Bid-Walk. OAR prepares Clarification of Scope and submits to Regional Representative for distribution.

Note: If this addition or clarification requires additional time to prepare bids, please specify revised date and time of bid due date, otherwise the original bid due date stands.

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BID & AWARDRegional representative obtains bids from Bid box at specified Date and Time. No late bids will be accepted.

Opens bid envelope with another District Representative as a witness

Prepares Abstract of Bids for Sealed A&B-Letters

Verifies Contractor is Safety Prequalified

Submits Bid Abstract to OAR for approval of lowest bid.

Obtains OAR approval and proceeds to verify lowest responsive bidder

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LICENSE VERIFICATION

California State License Board• http://www.cslb.ca.gov/ • Click on “check status”

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SAFETY PREQUALIFICATION LOG

Safety Pre-Qualification• http

://www.laschools.org/contractor/cc/pq/Click on “Safety Prequalification Log”

• Email cimone.watson@lausd.net and request to be put on weekly distribution list

• Regional representative provides Regional OAR’s a copy of the Safety Prequalification log

• Must use current list at all times for verification. Contractor Safety Prequalification Letter is not acceptable unless it is under a week old from current list.

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LIABILITY/AUTO INSURANCE Contractor’s Insurance

• http://www.ambest.com/ • Register, sign-on• Under Member Services (help)• Click on “Best’s Financial Strength Ratings”

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Must obtain Accord form under 30 days old for each project.

WORKER’S COMPENSATION INSURANCE

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Is Contract $15,000

or More?Yes

Prevailing Wage Certificate

PREVAILING WAGE

Notice to Public Entity

Weekly Certified Payroll

Performance Bond

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Is Contract Bond-

Funded &$20,000 or

More?

Yes

Not Required

PROJECT STABILIZATION AGREEMENT

No

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DIVISION OF APPRENTICESHIP STANDARDS

The PWC 100 allows an awarding body (LAUSD) to comply with apprenticeship and CMU notification laws. An awarding body or body awarding the contract means department, board, authority, officer or agent awarding a contract for public work. In most cases the awarding body is a unit of state or local government, such as a city, county, school district, water district, special district, or a state agency.  Please register at https://www.dir.ca.gov/pwc100ext/index.html

This will allow you to enter the project information on behalf of the awarding body (LAUSD).

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DIVISION OF APPRENTICESHIP STANDARDS

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DIVISION OF APPRENTICESHIP STANDARDS

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PWC ELECTRONIC FORM

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PWC 100 FORM CONTINUED…

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PRE-AWARD PRINT PACKAGE

A/B LETTER CHECKLIST BID TAB

Regional Representative updates dates and awarded vendor information in Maximo.

Obtains RCD approval signature on Bid Tab prior to executing System interface to obtain SAP Purchase Order. 33

CONTRACT AWARD

Regional representative receives SAP Purchase Order and generates A/B-Letter contract in Maximo. Regional representative emails contract to Contractor for signature. Regional representative receives signed contract from Contractor and obtains Authorized District Designee final signature. (RCD, Deputy Director or Director of PEX) Regional representative emails Final Executed Contract and Notice of Completion to contractor.

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JOB START MEETING AGENDA

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LABOR COMPLIANCE JOB START CHECKLISTProjects $15,000 and above (Maintenance and Equipment Repair Projects)

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WEEKLY CERTIFIED PAYROLLProjects $15,000 and above (Maintenance and Equipment Repair Projects)

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FRINGE BENEFIT STATEMENT

Projects $15,000 and above (Maintenance and Equipment Repair Projects)

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A/B LETTERADDITIONAL UNFORESEEN WORK

REQUIRED CONDITIONS

The three conditions that must be met to change an A or B Letter:

• An unforeseen site condition must have been discovered after the issuance of the contract. This unforeseen condition must be explained in detail in the memo.

• The work added or deleted to the contract that changes the amount of the A or B Letter must be deemed necessary to complete the scope of work.

• The additional/lower cost of the A or B Letter must be reasonable to accomplish the completed project.

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A/B LETTERADDITIONAL UNFORESEEN WORK

ADDITIONAL REQUIREMENTS

Certain requirements may be triggered at specific threshold amounts after amendment. The following requirements must be met when an A or B Letter is changed:

• If the contract was under the Public Project Construction Service (under $15,000) threshold ,

revised contract cannot exceed cumulative original and amendment more than $14,999.99.

• If the contract is under the Maintenance and Equipment Repair ($15,000 or more) threshold, the following documents are required:

• Prevailing Wage Certificate• Weekly Certified Payroll & Public Entity Form

• If the amount is $20,000 and Bond-Funded:

• The signed PSA Agreement is required

• If the amount is $30,000 or more:

• Inputting the project information into the Division of Labor Standards electronic payroll certified reporting system.

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CONTRACTOR INVOICE DOCUMENTATION

Contractor emails or mails Invoice, Notice of Completion and copy of contract to OAR for processing. OAR date stamps invoice, approves invoice by stamping “Approved” and signs invoice. Submits to Regional Representative for processing invoice in Maximo

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NOTICE OF COMPLETION

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PROCESS INVOICE IN MAXIMO

Regional Representative obtains approved email from OAR.• Regional Representative print the PO Details Report in Maximo (obtain

appropriate signatures).• Regional Representative receives the PO in Maximo (receiving application). • Regional Representative creates Invoice Record in Maximo (invoice application),

Change Invoice status to PAID. – Triggers RC in SAP. • Regional Representative makes copy or scans invoice documentation prior to

submitting to Accounts Payable• Regional Representative Submit Invoice, copy of signed Notice of Completion,

copy of A/B-Letter contract and copy of signed PO Details Report to A/P for payment.

• Regional Representative submits Performance Evaluation via school mail to:

Angela Worshim-McLoud

Project Units Central

1500 E. 14th St.

Los Angeles, CA 90021

(213) 763-3036

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CONTRACTOR PERFORMANCE EVALUATION

Regional representative generates from Maximo

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QUESTIONS

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