TITLE
Recommendation to adopt Specifications No. R-7193 and authorize City Manager, or designee, to execute all documents necessary to enter into contracts, and any necessary documents including any necessary subsequent amendments, with ACCO Engineered Systems, Inc., of El Segundo, CA, Bitech Construction Co., Inc., of Buena Park, CA, Blue Nose IT Solutions, Inc., DBA Blue Nose Construction of Los Angeles, CA, Good-Men Roofing Construction, Inc. of San Diego, CA, Harry Joh Construction, Inc. of Paramount, CA, Horizons Construction Co. Int'l, Inc., of Orange, CA, MIK Construction Inc., of Whittier, CA, PUB Construction, Inc., of Diamond Bar, CA, SJD&B, Inc., of Walnut, CA, Vincor Construction, Inc., of Brea, CA, and, World Wide Construction, Inc., of San Pedro, CA, for various infrastructure repairs and improvements throughout Long Beach, to be performed under the method of Job Order Contracting (JOC), in a total aggregate annual amount of $40,000,000, for a period of one year, with the option to renew for two additional one-year periods, at the discretion of the City Manager. (Citywide)
DISCUSSION
City Council approval is requested to enter into contracts with 11 firms selected for performing various infrastructure repairs and improvements in City of Long Beach (City), in accordance with Ordinance No. 21-038 adopted by City Council on November 16, 2021, for All Relating to Procurement and Management of Job Order Contracts (JOC).
The JOC program is a comprehensive procurement system designed to help public agencies provide routine construction services in a more expeditious manner than the traditional system of the design/bid/build method of contracting. JOC utilizes a competitively bid, firm fixed-price master contract. The JOC specifications provide a Construction Task Catalog (CTC) that contains unit prices for more than 100,000 construction tasks. To produce complete pricing for the JOC work orders, the contractor applies an adjustment factor containing provisions for profit and overhead to the CTC unit prices, which contain provisions for labor and materials only.
The JOC program is widely used by other public agencies, including 20 campuses in the California State University system, seven campuses in the University of California system Orange, Los Angeles, Riverside, and San Bernardino Counties; and the Los Angeles Unified School District. This method of project delivery has been used by the City since 2003.
While the City of Long Beach’s Public Works Department will be responsible for the administrative control and monitoring of these contracts, they may be used by other departments on a variety of infrastructure projects.
As required by the JOC policy and in accordance with the California Department of Industrial Relations model, a prequalification notice was issued on November 18, 2021 through PlanetBids to 681 potential vendors specializing in construction services. Additionally, a vendor outreach meeting was held on December 1, 2021, and notice of the opportunity was posted on the City’s social media on November 24, 2021, and November 30, 2021, 49 firms downloaded the prequalification package via the City's electronic bid system. Of those firms, 21 submitted prequalification packages and subsequently reviewed on December 10, 2021. Nineteen firms who submitted prequalification packages were prequalified and shortlisted in this process. Two firms did not prequalify due to missing required documentation and not receiving a sufficient pass rate as indicated on the Prequalification Notice and Questionnaire.
The bid was advertised in the Long Beach Press-Telegram on February 2, 2022, and 19 of the prequalified vendors were invited to bid. The bid document was made available on the Purchasing Division's website at www.longbeach.gov/purchasing. A bid announcement was also included in the Purchasing Division's weekly update of Open Bid Opportunities, which is sent to 42 local, minority and women-owned business groups. Thirteen bids were received on March 4, 2022. Of those bidders, 10 were Minority-owned Business Enterprises (MBEs), 2 were Woman-owned Business Enterprises (WBEs), 5 were Small Business Enterprises (SBEs), 3 were Disadvantaged Business Enterprises (DBEs), and none were Long Beach businesses (Local). The selection committee determined that the following firms were the most qualified and responsive based upon the criteria specified in the bid:
1. ACCO Engineered Systems, Inc., of Pasadena, CA
2. Bitech Construction Co. Inc., of Buena Park, CA (SBE)
3. Blue Nose IT Solutions, Inc., DBA Blue Nose Construction of Los Angeles, CA (MBE)
4. Good-Men Roofing Construction, Inc., of San Diego, CA (SBE)
5. Harry Joh Construction, Inc., of Paramount, CA (MBE)
6. Horizons Construction Co. Int'l, Inc., of Orange, CA
7. MIK Construction Inc., of Whittier, CA (MBE)
8. PUB Construction, Inc., of Diamond Bar, CA (MBE)
9. SJD&B, Inc., of Walnut, CA (DBE, MBE and SBE)
10. Vincor Construction, Inc. of Brea, CA (MBE)
11. World Wide Construction of San Pedro, CA (MBE and SBE)
Local Business Outreach
In an effort to align with the City’s outreach goal, Long Beach businesses are encouraged to submit bids for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download the bid specifications. Through outreach, 39 vendors were notified to submit bids, of which two downloaded and none submitted a bid. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Vanessa S. Ibarra on June 28, 2022, Purchasing Agent Michelle Wilson on June 17, 2022, and by Budget Management Officer Nader Kaamoush on June 29, 2022.
TIMING CONSIDERATIONS
City Council action is requested on July 19, 2022, to ensure there are no interruption to services.
FISCAL IMPACT
The contract authority requested is an aggregate annual amount not to exceed $40,000,000. The contract authority is estimated based on current and anticipated projects within various City departments, primarily in the Public Works Department. Any work not currently budgeted will only proceed at such time that appropriations have been approved by the City Council. Each work order will be funded by the requesting department, per project, on an as-needed basis. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with the existing City Council priorities. Approval of this recommendation will potentially have a positive impact on the local job market.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
ERIC LOPEZ
DIRECTOR OF PUBLIC WORKS
APPROVED:
THOMAS B. MODICA
CITY MANAGER