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1 CONSTRUCTION & PROFESSIONAL SERVICES CONTRACT PROCESS OVERVIEW Presented by Nathan Jones Contract Procurement Manager June 5, 2014
Transcript of CONSTRUCTION & PROFESSIONAL SERVICES ......management system, B2G. – Payments are uploaded into...
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CONSTRUCTION & PROFESSIONAL SERVICES CONTRACT PROCESS OVERVIEW
Presented by Nathan Jones Contract Procurement Manager June 5, 2014
Contract Process
Design of project and development of Scope of Work by Project Manager and Designer
Prepare Bid documents including plans and specifications or Request for Proposal (RFP) documents
Advertise for three consecutive business days in the Daily Journal and post all documents on website (all contract information on website)
Email notice to email list Pre-Bid / Pre-Proposal Conference (and site visit) normally
7 to 10 days following first day of advertisement Pre-Bid / Pre-Proposal Conference and Bid Opening held in
the South Campus, Trailer #2 (unless otherwise noted) 2
Contract Process - Continued
Written questions due ten calendar days prior to Bid Opening date (Construction) or approximately 7 to 10 days following Pre-Proposal Conference (RFP)
Public Bid Opening / Proposals Due approximately 30 days after first day of advertising
Bid Bond required in the amount of 5% of your bid Review period for budget and DSBO requirements Selection Committee reviews and scores proposals (RFP) Shortlist of firms and formal presentations (RFP) Award of contract (Construction) Contractor has five consecutive business days to return
signed contract with Performance & Payment Bond and Insurance
Contract Process - Continued
Selection of Consultant (RFP) and negotiation period Contract signing period (after contract returned by
Contractor) approximately 30 days for under $500,000 and 60 days for over $500,000 (Council approval required)
Contract signing period for CONSTRUCTION contracts (after contract returned by Contractor) approximately 30 days for under $5,000,000 and 60 days for over $5,000,000 (Council approval required)
Executed contract delivered with Notice To Proceed
DIA‘s Web site—On Line Business Resources
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DIA Business Center Web page
– The Web site has been reorganized and will be consistently refreshed with current updates to align with the DIA Commerce Hub mission.
– Click on:
www.flydenver.com Business Opportunities
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Defined Selection Pool
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DIA Web site—”Future Opportunities” Link Professional Services
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DIA Web site—”Future Opportunities” Link Construction
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DIA Web site—”Future Opportunities” Link Revenue Development
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DIA Business Center Web page
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Project Notification Form—Construction and Professional Services
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Current Contract (Procurement) Opportunities and Planholders List
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Planholders List--Example
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Contact Information
Nathan Jones 303-342-2137
Contract Procurement General Email: [email protected]
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DIVISION OF SMALL BUSINESS OPPORTUNITY (DSBO)
Ordinance 760 and Federal Code
– Division 1, Article III, Chapter 28, D.R.M.C. – “M/WBE” program – “SBE” program
– 49 CFR, Part 23 and Part 26 – “ACDBE” program – “DBE” program
– City Ordinance 1121 – Prompt Pay
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ACDBE Certification
Airport Concessions Disadvantaged Business Enterprise 49CFR Part 23 | Effective April 25, 2005
Its purpose is to help firms compete and participate in
concession opportunities by: – Helping remove barriers to the participation of ACDBEs in
opportunities for concessions at DIA;
– Creating a level playing field on which ACDBEs can compete fairly for opportunities for concessions;
– Avoiding discrimination in the award and administration of opportunities for concessions by airports receiving DOT financial assistance.
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ACDBE Certification
Who Should Apply? - Restaurant owners, concessionaires, retailers;
- Firms that provide goods or services or firms that can provide
a particular service to an existing concessionaire are encouraged to apply.
- Examples of ACDBE certified firms include; retail food & beverage, news & gifts, janitorial and maintenance services, consulting services, parking & transportation management, etc.
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COMP-MAP-100 R3
M/WBE Goal Setting Process
AGENCY
AGENCY
Is Form
Filled Out Correctly
?
Prepare Committee Agenda & Distribute
Assign to Appropriate
Goals Comm
Receive
Committee Project Info Form
(DBE/MWBE)
N
Prepare Recommendation
Conduct Goals Committee
Mtg
Forward Recommendation
To Project Mgr
Post Goal Recommendation
Obtain Director
Signature
Y
M/WBE Goal Setting
– Goals Committee: Heavy/Highway; Construction; and Professional Services.
– Goals Committee made up of citizen/contractors. Industry experts.
– Evaluate project scope and available M/WBE in marketplace to establish M/WBE project goal.
– Once goal established, project is bid.
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Responsive Bid/Proposal
– Letter of Intent (LoI) or Good Faith Effort (GFE) determines Responsiveness.
– Bid Projects: LoI due three (3) days after bid due date.
– Proposal Projects: LoI due at time of bid due date.
– GFE is ten (10) step process. Failure to meet all 10 steps will result in non-responsiveness.
– Goals apply to all Change Order work! 22
Subcontractor Payment Reporting
– The Prime Contractor is responsible for reporting payments made to the subcontractor/consultant in the city’s contract management system, B2G.
– Payments are uploaded into B2G monthly.
– The Prime Contractor will receive an email, which begins the process.
– Once the Prime Contractor submits the payment information, it is also the subcontract’s responsibility to confirm the payment.
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Network and Ask Questions
– Get to know the M/WBE firms in the city’s directory. Start early.
– Ask DSBO for assistance when submitting LoI.
Key Contacts Payment Reporting: Cristina Lopez, 303.342.2191 [email protected] ACDBE Certification: Alicia Sewell, 303.342.2185 [email protected] Project Requirements: Emmanuel Hangar, 303.342.2191 [email protected]
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AIRPORT SECURITY
Airport Security
– Denver Municipal Airport System Rules and Regulations – Rule 20.01 Participant Status
– Each Air Carrier, Tenant, Vendor, Ground Transportation (GT) Vendor, Contractor requiring access to the Restricted Area, Sterile Area, and/or Secured Area shall become a “Participant” in the Airport Security Program, and remain in good standing in order to retain Airport Security privileges.
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Airport Security
– Three key items to Airport Security New Company Setup 1. Participant Sponsorship Form 2. Participant Meeting 3. Obtaining Unescorted Access
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Airport Security
1. Participant Sponsorship Form: – Any vendor, ground transportation vendor, or contractor requiring
access to the Restricted Area, Sterile Area, or Secured Area must be sponsored by the City and County of Denver Department of Aviation, an air carrier, or a tenant. The sponsorship establishes that a vendor, ground transportation vendor, or contractor has legitimate business at the airport. All construction contractors must submit the Participant Sponsorship Form with their sponsor’s signature, along with a signature from the Maintenance or Engineering divisions to validate non-city projects.
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Airport Security
2. Participant Meeting: – Attend a Participant Meeting with the Assistant Director of Security or
their designee. All pertinent information will be covered in this meeting. The following information and documents are required at the Participant Meeting:
– Sponsorship Form from each company you are servicing or working for
– Contact information for your company (e-mail address, phone number, etc.)
– List of areas, doors, and gates that you will require access through. Please contact your sponsor to determine necessary access.
– An Insurance Policy of $10 million for driving unescorted on the airfield. If driving is required only in the tunnels you will need an Insurance Policy of $1 million.
– Fees for fingerprinting. Cash or check only. Check made payable to "Airport Revenue Fund."
– Authorizing Agent Class: the person that attends the Participant Meeting will be the Authorizing Agent and the security contact for your company
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Airport Security
3. Obtaining Unescorted Access: – Any person requesting or requiring a badge that would permit
unescorted access to the sterile or restricted areas must be fingerprinted, pass a Criminal History Background Check, and a Security Threat Assessment. If your company requests unescorted driving privileges on the AOA, every badged individual requesting a driving endorsement will be required to receive the AOA driver training on an annual basis through Computer Based Training (CBT).
– For further information regarding fees and deposits, please contact the Airport Security Office at (303) 342-4307. Review the Denver Municipal Airport System Rules and Regulations for further guidelines for conducting business at Denver International Airport.
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INSURANCE
Basic Insurance Requirements
– Any company or individual doing business of any type with DIA must carry insurance which, at a minimum, includes:
– General Liability – Workers’ Compensation – Auto Liability
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Additional Requirements
– Depending on the type of work that you are performing for DIA, you may be required to carry additional insurance such as: – Umbrella Liability – Professional Liability – Environmental Liability – Builders’ Risk
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Steps of the Process
– Insurance requirements are issued with the RFP/Bid or are in the draft contract.
– Please be sure that you know what the requirements are-once you sign the contract, you will be legally responsible for meeting these basic requirements, even if you have to go out and purchase the coverage before beginning work.
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Steps of the Process
– The uniform insurance language in the contract states that the Consultant: – agrees to buy and keep in force the required insurance
during the entire term of the contract, – will provide proof of that insurance to DIA upon
execution of the contract and prior to any work beginning, and
– will ensure that all subcontractors will comply with all of the insurance requirements.
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Summary
– All businesses must have insurance to work at DIA. – Once you receive a RFP or bid packet, take the insurance
section to your insurance agent. – Once you are awarded the contract, have your insurance
agent send a certificate of insurance to DIA. Submit the certificate with the signed contract.
– Do not start work until your insurance has been approved. Invoices will not be processed until the insurance is complete.
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Rolling Owner Controlled Insurance Program
Administrator: Arthur J Gallagher Risk Management Services, Inc.
Insurance Carrier: The Hartford
In recent years, the airport has elected to include some CIP projects in the ROCIP, the rolling owner controlled insurance program so you want to know a little about this program as well.
Rolling Owner Controlled Insurance Program (ROCIP) Definition
• A ROCIP is a technique for consolidating the insurance
coverage for participants in a large construction project.
• DIA purchases the insurance coverage and then recovers from the contractors the amount each would have spent on insurance absent the ROCIP.
• There is one insurer and one insurance broker instead of a patchwork program of coverage, indemnities, policies, brokers and insurers.
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Rolling Owner Controlled Insurance Program (ROCIP) Benefits
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•DBE/WBE/MBE inclusion
•Certainty of better insurance coverage Broader terms and higher limits
•Centralized focus All parties interests are aligned financially and legally.
•Proactive Safety and Claims Management
•Cost savings Economies of scale
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PREQUALIFICATION
Prequalification
- Prequalification is a status that allows a contractor to bid on City & County of Denver work.
- Prequalification is granted as to categories of work and financial levels, based on contractor’s experience, qualifications and financial capability
- Generally any contract estimated to be over $1,000,000 requires prequalification
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Prequalification
There are 9 categories of work: 1. Excavation and Grading 2. Landscape (a & b) 3. Utilities (a & b) 4. Sewer (a, b & c) 5. Roadway and Paving (a, b, c & d) 6. Structures (other than buildings) (a, b, c & d) 7. Buildings (a, b, c, d, e, f & g) 8. Environmental Remediation (a, b & c) 9. Specialty
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Prequalification
Financial Limits:
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Contracts Not Exceeding : Financial Statement Required
$1,500,000 Reviewed or Certified Audited
$3,000,000 Reviewed or Certified Audited
$5,000,000 Certified Audited
$7,500,000 Certified Audited
$10,000,000 Certified Audited
$15,000,000 Certified Audited
$20,000,000 Certified Audited
$25,000,000 Certified Audited
Prequalification
– All contractors performing Environmental work are required to be prequalified regardless of the dollar amount
What is Special Permission: - A process allowing a contractor to be prequalified at a
higher level than what they are prequalified at for a specific project.
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Prequalification
Prequalification Criteria Reviewed:
Financial Capability-
-Amount of Quick Assets or Working Capital (must be positive) -Ratio of Debt to Net Worth <4.0 -Type and size of projects completed in past 5 years (top 50) -Bonding capacity -Is audited statement subject to any qualifications 45
Prequalification
-Has contractor’s performance been satisfactory -Contractor’s safety record (Experience Modification Rate
Factor-EMRF) - >1.5 automatic ineligibility - 1.2-1.49 consideration for denial or lower
prequalification level
-In arrears or default may be considered for denial
-History of debarment or suspension may be considered for denial
-History of criminal conviction may be considered for denial
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Prequalification
– Prequalification status is good for one year. You must reapply annually.
– Apply today don’t wait until you need it.
– The Rules and application are available at
www.denvergov.org/prequalification
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PREVAILING WAGE
Prevailing Wage
WHAT IS PREVAILING WAGE? – Prevailing Wage is the law. It is mandated under
Section 20-76 of the Revised Municipal Code of the City and County of Denver.
– Prevailing Wage applies to all DIA contracts with a
value of $2,000.00 or more – the value being the total cost of all labor and materials on the project, whether individually or in the aggregate.
– Prevailing Wages are the hourly wages (including fringe benefits) based on the Federal Davis-Bacon rates which the City of Denver’s Career Service Authority periodically adjusts for our local market.
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Prevailing Wage
TYPES OF WORK COVERED BY PREVAILING WAGE:
Construction Demolition Alterations Improvements Repairs Maintenance/Janitorial Hauling
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Prevailing Wage
– WHAT PREVAILING WAGE RATES APPLY AT DIA? Career Service issues four groups of wages: Building: everything inside the foundation of the building. Highway: covers construction, alteration or repair of roads,
highways, airport apron areas, runways, taxiways, and parking areas.
Heavy: covers everything outside the building foundation: non-habitable structures, such as toll booths, kiosks, parking
garages and car washes. Also used for building demolition. CSA: finishers, floor grinders, transit technicians, baggage
system technicians, custodial rates.
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Prevailing Wage
THE PROCESS – The general/prime and subcontractors at all tiers submit
weekly certified payrolls in a timely manner via LCPTracker, the City’s on-line reporting system in which the applicable Prevailing Wage rates have been locked in.
– Contractors report their employees, work classifications, straight time and overtime hours (after 40 hours in a given work week), as well as any apprentices used.
– Apprentices must be currently registered in a BAT Program (Bureau of Apprenticeship and Training, US DOL). We enforce a 1:1 journeyman/apprentice ratio at all times.
– Employees are required to be paid weekly for the hours worked. Only janitorial and window washing contracts are exempt from this requirement.
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Prevailing Wage
THE PROCESS (continued) – Employees working on a DIA project must have been E-
verified after September 1, 2010. – The general/prime contractor ensures that all
subcontractors are informed about the Prevailing Wage requirements of a DIA project prior to commencing work.
– Fringe benefits need to be approved by the Auditor’s Office prior to the start of the project. Approval is good for one year.
– The Prevailing Wage posters in English and Spanish, together with the applicable wage rates, need to be displayed on site where they are accessible to all employees.
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Prevailing Wage
THE PROCESS (continued) – Working owners who personally perform work on a DIA
project may be exempt from paying themselves Prevailing Wages, but still must submit in LCPTracker the weekly certified payrolls reporting their hours worked.
– Contractors who are non-compliant will have their payments withheld until the Auditor’s Office is fully satisfied that they have met the project’s Prevailing Wage requirements.
– Please note that the Auditor’s Office no longer accepts
certified payrolls in a paper format. For further information about the electronic payroll reporting system referenced earlier, please visit www.LCPTracker.com.
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Prevailing Wage
Wage Changes During The Project The Prevailing Wage rates can change if the
project goes beyond 1 year from the date the Mayor signed the contract – known as the anniversary date.
The wages in effect on the anniversary date
apply to all work done during the following calendar year. This cycle repeats itself until the project is completed. 55
Prevailing Wage
DIA Tenant Finish Projects All of these requirements also apply to Tenant Finish projects
at DIA. These are projects for which the tenant directly engages a general contractor. They can be for food and beverage concessions, car rentals, airlines, freight/custom services, SkyChef, etc.
Since the work is not awarded through the City’s formal bidding
process, the general contractor completes a Pre-NTP Form that I have sent him once notified about the upcoming project. The information provided on the completed Pre-NTP Form allows me to set up the project in LCPTracker.
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Prevailing Wage
Contact Information Stan Cuba Prevailing Wage Investigator c/o Auditor’s Office-AOB Denver International Airport 8500 Peña Blvd. Denver, CO 80249-6340 Email: [email protected] Phone: (303) 342-2710 57
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TREASURY
Contact Information
Douglas W. Schellinger, CPA
Tax Audit Supervisor
201 West Colfax Avenue, MC 1001
Dept. 1009
Denver, CO 80202
Phone: 720-913-9393
Fax: 720-913-9460
Email: [email protected]
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Resources
– www.denvergov.org/treasury – Colorado Dept of Revenue – Current Tax Rates, by
Jurisdiction. Website address: www.colorado.gov/revenue/tax
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Sales to Construction Contractors
Contractors are considered to be the end user of all construction materials and should be charged sales tax (unless use tax has been paid to another jurisdiction on a building permit) .
Contractors could also make retail sales but must have a valid resale license to do so.
Denver’s tax rate is 3.62%.
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Consumer Use Tax
Use tax is due on all taxable purchases (including purchases made over the Internet) on which sufficient sales or use tax has not been paid.
Accrue and remit use tax directly to Denver. Use tax rate = sales tax rate that a licensed vendor would
have charged on the invoice. If you have a sales tax license, remit use tax on line 8 of
your sales tax return. If no sales tax license, apply for a Use Tax account.
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Occupational Privilege Tax
OPT has 2 parts: EOPT – Employee OPT imposed on
taxable employees $5.75 per taxable employee, withheld
from employees’ paychecks. BOPT – Business OPT imposed on the
business/employer. $4.00 per taxable employee, owner,
partner and/or business with no employees.
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Duty to Keep Records
DETAILED GENERAL LEDGER DEPRECIATION SCHEDULE PURCHASE INVOICES AND RECEIPTS SALES INVOICES AND RECEIPTS BANK STATEMENTS AND CANCELLED CHECKS BUSINESS CREDIT CARD STATEMENT DETAIL DELIVERY DOCUMENTS PAYROLL RECORDS DENVER TAX RETURNS Job Cost Records Other records as required.
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PROJECT CONTROLS
PROJECT MANAGEMENT - Project Controls
– Project Management and Coordination – 013100 Oracle Unifier EPPM® Project Management systems are being utilized by Project Controls to manage system content, schedules, and project cost ● Primavera P6 – Scheduling system ● Unifier – Project & Cost Management system ● Negotiation Requirements – Title 11 GCC ●
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Primavera P6
– Scheduling The construction schedule shall be a computerized Critical Path Method
(CPM) schedule with the following requirements:
● Work Breakdown Structure (WBS) format that corresponds with the Schedule of Values.
● Required to be Cost & Resource loaded at $500k (Project Manager’s choice below $500k)
● Cost loaded – to include Total Contract Cost (i.e. material, non direct costs)
● Man Hours loaded – direct man hours only, including work by subcontractors (no overhead hours)
● Include submittals and subcontractor work in the schedule.
● A narrative explaining means, methods, and assumptions utilized to develop the schedule logic.
Unifier
– Project and Cost Management All DIA Development Group projects (without exception) will be managed within the Unifier Project Management system ● Design Review ● Change Management (CRs, CCRs, COs) ● Submittals ● Request for Information (RFIs) ● Invoice & Pay Application management ● Closeout ● Document Management
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Negotiation Requirements
– General Contract and Conditions Defines the specific requirements and processes for submittal of Contractor change(s) to Project and Contract scope of work ● Contractor Change Requests ● Change Orders ● Claim Submittal
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Contractor Change Request (CCR)
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Change Order/Task Change Order
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Construction Claims
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PAYING CONTRACTORS
Contract Administration
Areas of Responsibility – Payment Application Audits/Processing – Compliance Monitoring
• Bonds and Bond Riders • Insurance • Executed On-Call Authorizations
– 107 Claims Processing – Records Management and Reporting
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Contract Administration
Payment Application Submittal Requirements
– CM-18 form (Application for Progress Payment) – Schedule of Values – Partial Lien Release form – Contractor’s Certification of Payment form
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Textura Information Sessions Textura will work with the DIA project teams, AGC and ASA to schedule on site information sessions
Textura Training Sessions Initial on site training for project teams Subcontractor training webinars 3 days/week
http://www.texturacorp.com/training/webinarschedule.htm Continued Support
866-TEXTURA Monday – Friday / 6AM – 7PM MST
Textura representative in Denver area every 1-2 months Just in Time Training Job Aides for Specific Roles Active Group Training Sessions (optional) One on One Trainings with Textura Representatives Weekly Status / Q&A Calls
Textura
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Textura Pricing Per Project – Prime Only
PROJECT SIZE FEE (% OF BID)
< $1,000,000 0.22%
$1,000,001 - $5,000,000 0.17%
$5,000,001 - $20,000,000 0.12%
$20,000,001 - $50,000,000 0.10%
$50,000,001 - $100,000,000 0.08%
$100,000,001 - $500,000,000 0.05%
> $500,000,000 CONTACT TEXTURA FOR PROGRAM PRICING
Contract Administration
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+
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DIA COMMERCE HUB
DIA Commerce Hub Overview
– The DIA Commerce Hub will increase the opportunity and capacity of the local business community through contracting opportunities, educational programs, prime engagement, and business development.
– The Hub acts as an advocate for small businesses, championing efforts that improve policy, increase access, and position firms to bid on projects across all DIA departments. This includes providing direct assistance to external business customers requiring training, guidance, tactical support, and mentoring to meet DIA, City, and Federal Requirements for gaining ACDEB/DBE certification. 81
DIA Commerce Hub Core Services
– To serve as a One-Stop Center:
– Outreach and financial capacity guidance – Advocacy – Program development – Referrals and community partnerships
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DIA Commerce Hub Operations
- DIA is committed to identifying and working with qualified small and minority firms intending to bid on DIA projects and opportunities
- DIA utilizes the Commerce HUB to:
- Disseminate information about upcoming opportunities (90 day projects list for future opportunities)
- Provide technical assistance and support to our local business community
– Training and financial capacity review 83
Contact Us
– Hours of Operation Monday – Friday 8 a.m. – 4 p.m.
– Main Phone: 303.342-2351
Email: [email protected]
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DIA‘s Website
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DIA Connecting Business Website
– The Website has been reorganized and will be consistently refreshed with current updates to align with the DIA Commerce Hub mission.
– Click on:
– www.flydenver.com – Business
Opportunities – DIA Commerce Hub
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DIA Commerce Hub Web Page
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In the Commerce Hub page you will find contract opportunities. The website has current procurement opportunities listed in the Concessions, Construction, and Professional Services links
