Presentation on theme: "Conducted for Project Execution"— Presentation transcript:
1Conducted for Project Execution A/B LETTER PROCESSConducted for Project Execution
2a/b letters are… PUBLIC PROJECT CONSTRUCTION SERVICES Under $15,000 maximumPainting and repainting, alteration, improvement, demolition, renovation, erection, construction, reconstruction and repairPublic Contract Code Section (b)MAINTENANCE AND EQUIPMENT REPAIR$83,400 maximum – adjusted annually by the State Superintendent of Public InstructionRoutine, recurring and usual workPublic Contract Code Section 20115
3FIXED PRICE "B" LETTERS WITH PREDETERMINED SCOPES OF WORK DEFINITIONAn A/B Letter Contract is an Informally Bid Contract as defined by California Public Code (Public Contract Code )."A" LETTERSTIME AND MATERIALObtains 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 PREDETERMINED SCOPES OF WORKEstablishes a total price for work to be performed.When to use- Scope is fully defined.
4a/b letters are not… A change order to formal contracts To 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)
5Special circumstances It is the intent of the District to solicit 3 bids wheneverpossible.Exceptions are as follows:Maintaining integrity of existing warrantyEmergencySole ProviderCost Benefit to DistrictA Justification Memo must be approved prior to awardingthe contract.
6California codeSection 20111of the Public Contract codes establishes two dollar thresholds for the type of expenditure:Public Project Construction Services$0 to $14, (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.
7a/b letter proceduresLoginClick on FSD Policies and Procedures & Go to 8.5
8overview Planning Phase Environmental (Asbestos and/or Lead) Planning PackageAdvertisingPre-AwardBid-WalkBid & AwardVerification of Lowest Responsive Bidder’s DocumentationContract/AwardDocuments for ApprovalConstruction DocumentsContract Closeout
9Planning phase Coordinates with school on work access and hours Obtains Fair Cost Estimate (FCE)Obtains needed plans and specificationsObtains 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
10environmental Documents http://www.laschools.org/employee/ Login Click on FSD Policies and Procedures & Go to 17.3 Forms LogRequest for Environmental AssessmentATU Approval Request to Advertise
11Planning packageOAR 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 ESTIMATEATTACH ATU APPROVAL, REQUEST TO ADVERTISEATTACH SCOPE OF WORK(Word document)ATTACH PLOT PLAN, DRAWINGS AND SPECIFICATION (if applicable)CONFIRMATION OF CONTRACTOR PHONE/ BIDS, if applicable
12advertising Projects under $15,000 do not require advertising OAR contacts at least three(3) Safety PrequalifiedLicensed contractors viaphone, fax orPrepares Bid form(Confirmation of ContractorPhone, Fax or Bids)
14Dollar thresholdsALL A/B Letter contracts require Safety Prequalification, Insurance andLicense Verification. Additional documents are required when thecontract reaches certain thresholds.Under $15,000 (Public Construction Project): NO additional documents.$15,000 and Over (Maintenance & Repair Project):Performance BondPrevailing WageWeekly 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
15Pre-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 REQUIREMENTSNOTICE TO BIDDERS RE: SAFETY PREQUALIFICATIONSCERTIFICATION OF INSURANCE FORMPREVAILING WAGE CERTIFICATE (bids $15,000 and over)CODE OF ETHICS POLICYLEAD 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
16Bid-walk Introduction and Background a. Attendees Sign Bid-Walk Sign In Sheet.b. Introductions (OAR, CPM, Labor Compliance, Contractor, etc.)Safety and Healtha. Review Roles and Responsibilities for Site Safety.b. Review Workplace Conductc. 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 Controlg. 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.Environmentala. Review CONTRACTOR’S Proposed Usage Of Hazardous Materials.b. General Hazardous Material Handling.c. Asbestos and Lead Reports; Coordination with Environmental Consultant (If applicable)
17Bid-walk Construction a. Review Contract Scope of Work. b. Temporary FacilitiesLay Down Area and Storage AreasTrash Removal (offsite)Site Access (including deliveries)Parking Availability (On & Off-site, Restrictions, Etc.)HousekeepingSecurityContractor’s Normal Working Daysc. Coordinating Work Areas with OthersCoordination of Project Work with School AdministratorCoordination of Project Work with Other School Site Projects/Contractorsd. Telephones – DO NOT USE SCHOOL DISTRICT PHONES!!!!e. Permits – Offsite Improvement Permit (BC Permit) & Inspection/Approval Requirements (if applicable)f. Quality Control and InspectionPSA Agreement (Contract > $20,000 and Bond Funded)a. Review PSA Agreement regarding: Letter of AssentConstruction Schedule and Progress Reportinga. Critical Work Sequencingb. Proposed date for Construction start is
18Bid-walk 8525 Rex Road, 2nd Floor Pico Rivera, CA 90660 Testing and Inspectiona. Request for Inspection by OAR.Contractor Paymentsa. Review of Invoice for Payment Processb. Progress Payment Schedule and Progress Measurement (If progress payments apply)Contract Managementa. CorrespondenceContractor Shall Send All Correspondence to the DISTRICT REPRESENTATIVEb. Contract ComplianceContractor/Subcontractors (if applicable) to Review Contract Documents Prior to Starting Work.c. Claims ProcessContractor Must Submit Claims To: Los Angeles Unified School DistrictProcurement Administration8525 Rex Road, 2nd FloorPico Rivera, CA 90660
20Bid & award Regional Representative after Bid-Walk OAR submits Bid Sign in Sheet toRegional Representative after Bid-WalkAny Addition or Clarification of Scopedetermined after the Bid-Walk must besent to all attendees within 24 hours ofthe Bid-Walk. OAR preparesClarification of Scope and submits toRegional Representative for distribution.Note: If this addition or clarificationrequires additional time to preparebids, please specify revised date andtime of bid due date, otherwise theoriginal bid due date stands.
21Bid & 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 awitnessPrepares Abstract of Bids for Sealed A&B-LettersVerifies Contractor is Safety PrequalifiedSubmits Bid Abstract to OAR for approval of lowest bid.Obtains OAR approval and proceeds to verify lowest responsivebidder
22License verification California State License Board Click on “check status”
23Safety prequalification log Click on “Safety Prequalification Log”and request to be put on weekly distribution listRegional representative provides Regional OAR’s a copy of the Safety Prequalification logMust 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.
24Liability/auto insurance Contractor’s InsuranceRegister, sign-onUnder Member Services (help)Click on “Best’s Financial Strength Ratings”Must obtain Accord form under 30 days old for each project.
26Prevailing wage Is Contract $15,000 or More? Yes Prevailing Wage CertificateIs Contract $15,000 or More?Notice to Public EntityYesWeekly Certified PayrollPerformance Bond
27Project stabilization agreement Is Contract Bond-Funded &$20,000 or More?YesNoNot Required
28Division 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.htmlThis will allow you to enter the project information on behalf of the awarding body (LAUSD).
33Pre-award print package A/B LETTER CHECKLISTBID TABRegional 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.
34Contract awardRegional representative receives SAP Purchase Order and generates A/B-Lettercontract in Maximo.Regional representative s contract to Contractor for signature.Regional representative receives signed contract from Contractor and obtainsAuthorized District Designee final signature. (RCD, Deputy Director or Director of PEX)Regional representative s Final Executed Contract and Notice of Completion tocontractor.
36labor compliance job start checklist Projects $15,000 and above (Maintenance and Equipment Repair Projects)
37Weekly certified payroll Projects $15,000 and above (Maintenance and Equipment Repair Projects)
38Fringe benefit statement Projects $15,000 and above (Maintenance and Equipment Repair Projects)
39a/b letter additional unforeseen work REQUIRED CONDITIONSThe three conditions that must bemet 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.
40a/b letter additional unforeseen work ADDITIONAL REQUIREMENTSCertain 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,If the contract is under the Maintenance and Equipment Repair ($15,000 or more) threshold, the following documents are required:Prevailing Wage CertificateWeekly Certified Payroll & Public Entity FormIf the amount is $20,000 and Bond-Funded:The signed PSA Agreement is requiredIf the amount is $30,000 or more:Inputting the project information into the Division of Labor Standards electronic payroll certified reportingsystem.
41Contractor invoice documentation Contractor s 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
43Process invoice in maximo Regional Representative obtains approved 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 PayableRegional 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-McLoudProject Units Central1500 E. 14th St.Los Angeles, CA 90021(213)
44Contractor performance evaluation Regional representative generates from Maximo