1. WELCOME! SBE Boot Camp JOB ORDER CONTRACTING (JOC) CHRISTY GUZMAN JOC Program GAYANE STEPANYAN JOC Program September 30, 2015 1

2. Overview of the JOC Program What is Job Order Contracting (JOC)? It is a contract delivery used to accomplish a large number of individual projects under a single master contract awarded to the most qualified and prequalified bidder who is licensed, bonded and general liability insured. JOC is performance-based. JOC Contractors are experienced in handling “on-demand” multiple public works construction contracts District-Wide, and effectively handle, superintend,and manage projects simultaneously at different stages of construction District-Wide. Bidder agrees to a fixed period, fixed unit price (Bid Adjustment Factor), and indefinite quantity contract that provides for the use of job orders for public works or maintenance projects. PSA applies regardless of the value of the project. JOC Contractors are required, under the PSA, to notify the unions within 7 days prior to the commencement of work. JOC uses The Gordian Group’s Construction Task Catalog (CTC) which contains more than 180,000 construction line items from material, equipment, and labor to demolition to installation. It is priced for the area of work and customized for each program such as the WLAN Program as an example. It comes complete with technical specifications. Bidder bids an Adjustment Bid Factor (ABF) which is used as a multiplier against CTC (i.e. 1.000 ABF x quantity x unit cost) 2

3. The minimum amount is $25,000 per Master Contract. The District awards JOC master contracts based on contractor performance and ability to increase bond capacity per the District’s work volume. The initial contract term is 1 year with two 1-year options for a maximum contract period of 3 years. The initial value of the contract may be adjusted, according to contractor’s performance, at any time up to a potential value of $5M covering the first term of the contract and up to a potential maximum value of $10M thereafter, as long as the prime contractor can bond for the additional contract amount. Recommendation Learn how to conduct business with a public agency, if you have not done so yet, and understand all the nuances of public works contracting and construction such as prequalification requirements, contractor performance from the JOC procurement process, closeout, and response to warranty issues. Graduate at the A&B Level to the Formal (Design-Bid-Build) and then to JOC so that you will be better prepared to grow into the program. 3 Overview of the JOC Program

4. Benefits of JOC To the Owner: Accelerated completion of projects Cost savings Reduction of construction contracting complexity Ability to initiate projects that have not yet been fully defined since work is scoped jointly by the District and JOC Contractor To the Contractor: Build/increase bond capacity through successful completion of projects (performance based) Potential guaranteed work up to the maximum potential value of the contract based on bond capacity 4

5. JOC Terms Initial contract term / base period - 1 year 2 one-year options Maximum contract term - 3 years Guaranteed minimum amount - $25,000 - performance based The initial value of the contract may be adjusted up to $5M covering the first term of the contract and up to a maximum value of $10M thereafter, as long as the prime contractor can bond for the additional contract amount. A bid guarantee of $25,000 is required with each proposal submittal. Payment and performance bonds: Each shall be for 100% of the initial “master” contract value. Bond riders are issued by the Surety as the contract value is adjusted as mutually agreed to by the District and the Contractor. District will automatically adjust the bid factor at each anniversary of the contract to reflect the percentage change in the California Consumer Price Index (CCPI). 5

6. Bidding Requirements Prequalify - Safety Prequalification - MEP (Mechanical, Electrical, and Plumbing) Prequalification - Subcontractor Prequalification - Standard Prequalification Explore the JOC Process and Price Catalog How to come up with a Bid Factor Get SBE Certified – Only LAUSD SBE Certification will be accepted Get DIR Registered OCIP applies PSA applies Prevailing wage applies 6

7. Bond Requirements JOC: A $25,000 Bid Bond or Bid Guarantee is required at the time of bid. Upon award of the Master Contract, Contractor must provide Payment and Performance Bond for the maximum value of the Master JOC. (i.e. $200K - $5M) Formals: A 10% Bid Bond is required on all “Formal” competitively bid construction contracts Payment and Performance Bonds are required on “all” public works projects in excess of $15,000 7

8. JOC Uses LAUSD considers JOC appropriate for minor new construction, renovations and repairs, including but not limited to: Minor construction projects (under $1M) HVAC and Electrical Routine repairs, Emergency repairs, and Renovations Upgrades to ADA standards Site work and utilities Parks and playgrounds Upgrade landscaping Replace flooring Demolition Abatement of Hazardous Materials Completion of Work of a terminated or “take-over” contract 8

9. JOC Contract and Job Orders 7 Issue “Master” Contract Issue Job Orders Against “Master” Contract JO #1 JO #2 JO #3 Job Order #4 cannot be issued until ($) capacity increased per policy. Contract extensions must be approved by the District. Issue Job Orders Against “Master” Contract JO #4 JO #5 JO #6 Extend/Increase $ “Master” Contract

10. FACTORS USED IN SELECTION PROCESS Bid Adjustment Factor Contractor’s Performance Score SBE Certification from the District Public works construction contract references (trade/specialty or program-specific) 10

11. SELECTION PROCESS 11 SELECTION PROCESS 1.The selection and award is based on and evaluated in accordance with the minimum qualification requirements and criteria set forth per specific JOC RFP. 2.The District determines the most qualified prequalified proposer as follows: The Composite Adjustment Factor is the resultant factor derived from dividing the Adjustment Bid Factor by the Contractor Performance Score and SBE Points as shown below. Calculation of the Composite Adjustment Factor The Adjustment Bid Factor is divided by the total Contractor Performance Score and SBE Points calculated in percent format (i.e. 80 + 5 points = 85 or 85%) for evaluation, ranking, and selection purposes: Contractor Adjustment Bid Factor /(Performance Eval Score + SBE Points) = Composite Adjustment Factor A 1.0000 90% 0 1.1111 (Rank 3) B 0.9000 93% 0 0.9677 (Rank 2) C 1.0000 100% 5 0.9523 (Rank 1) In the above example, Contractor C is determined to be the most qualified bidder, provided that all other requirements and criteria of the RFP are met.

12. 12 JOC Project Initiation

13. 13 Joint Scope Meeting & RFP

14. 14 Proposal & Validation Process

15. 15 Award Phase

16. Bidding Opportunities Search for subcontracting and prime contracting opportunities Attend pre-bid meetings to meet District representatives, prime contractors, subcontractors, labor union representatives, industry experts, etc. Understand the District’s prequalification, bidding and contracting requirements http://www.laschools.org/new-site/bidding- opportunities/joc/resources 16

17. LAUSD Expectations HIRE AND TRAIN apprentices and make appropriate payments to apprentice training trust. HIRE a workforce for the project that reflects the ethnic diversity of Los Angeles. HIRE employees that conduct themselves in a professional manner around students. CONSTRUCT the project according to the plans and specifications. COMPLETE the project within the contract time limits. WE BUILD - The Board is committed to participation of local area residents in its school construction and modernization programs. To identify trained and skilled labor resources, please contact the "We Build" Program at (213) 241-4990. This Program works directly with the Union Building Trades. 17

18. JOC Bidding & Contract Requirements All JOC RFP’s are subject to the following requirements in addition to the RFP requirements: 1. Assembly Bill (AB) 2580 and Public Contract Code (PCC) 20919 – legislation and statutes are included in the RFP package http://leginfo.ca.gov/ 2. Prequalification Program http://www.laschools.org/new-site/prequalification/ 3.Prevailing Wage / Labor Compliance Program (LCP) http://www.laschools.org/new-site/labor-compliance/ 4.Project Stabilization Agreement (PSA) http://www.laschools.org/new-site/project-stabilization/ 5.Small Business Enterprise (SBE) http://www.laschools.org/new-site/small-business/ 6.Owner Controlled Insurance Program (OCIP) http://www.laschools.org/fcs/cc/pq/file- storage/?folder_id=1045824 7. Contractor Bondworks Program http://www.laschools.org/new-site/small-business/contractor-bondworks 8.District’s technical specifications available online at http://www.laschools.org/documents/?folder_id=219598873 18

19. Thank you! Thank you! Q & A 19 Please visit The Gordian Group’s website at egordian.com and click on Videos tab for an overview of the JOC delivery method in detail. Please contact the JOC Unit at jobordercontracts@laschools.org and reference SBE Boot Camp Question. LOS ANGELES UNIFIED SCHOOL DISTRICT Facilities Contracts JOC Contracts Unit 333 S. Beaudry Ave, 23 rd Floor (Aisle 3) Los Angeles, CA 90017 (213) 241-2455