Gotham JA Miele, Sr, PE
Water conservation cleans Long Island Sound, RL Swanson, DJ Tonjes
Marine vessels serving New York City, W Goyzueta, J Chen, K Byrnes, R Ferro
Pilot biological nutrient removal, B Bodniewicz, K Mahoney
Enhanced beach protection 2000, FJ Oliveri, F Loncar, M Ellis
Telemetering in New York, S Rozelman, S Aziz
Job order contracting, MP Quinn, P Schrayer
Operational benefits of celebrating Water Week, RE Adamski, H Einsohn, M Keating, A Lamarche, B Olivieri
CSO signage: expanded notification, S Rozelman, P Lutz, F Loncar
Executive director's message, P Cerro-Reehil
Job order contracting
by Michael P. Quinn, PE and Paul Schreyer
Guidance to prospective bidders
Competitive bidding process
Job order development process
Incentive for contractor's continued performance
NYCDEP, like other municipal agencies, has an ongoing need for straightforward, relatively minor capital construction projects. Examples are the replacement of equipment, piping, valves, lighting, handrails, gratings, and other common components essential to a typical water pollution control plant. Preparing traditional bid packages, complete with plans and specifications, and going through the standard bid process for each such project can be costly and time consuming. The Department, however, has implemented a new procurement system that will change all that.
The new system has the following attractive features:
This new procurement system is known as Job Order Contracting. To design and implement the system, the Department retained the services of The Gordian Group, Inc., a national consulting firm that invented the job order contracting process.
A Job Order Contract consists of three documents:
is a construction task catalog which contains over
seventy thousand work tasks with corresponding pre-set
unit prices. For example, a square foot of grating, a
lineal foot of PVC coated conduit, and a variety of
explosion proof lights. The unit prices are for the
installed item and include the direct cost of labor,
material, and equipment. All unit prices are developed
using local prevailing wage rates and local quotes for
material and equipment. The unit prices for some tasks
are adjusted by quantity.
The tasks included in the construction task catalog are specifically tailored for the exact type of work that the Department intends to accomplish.
is a set of performance-based technical specifications
that dictate the quality of workmanship and materials
for the individual work tasks.
Third is a document that contains contractual information and consists of the information for bidders, bid forms, and general conditions. It also contains the procedures for ordering work, payments, insurance requirements, and other details of the contract.
Because of the nature of the work to be done, the Department could not, during the bidding process, tell the contractors the exact work that would be performed. Also because of the nature of the contract, no commitments were made with regard to specific tasks or quantities to be ordered from the catalog. The Department was able to give contractors two facts:
Following two pre-bid conferences at which the contract was explained in detail, the contractors were asked to bid two adjustment factors to be applied to all the pre-set unit prices.
The first adjustment factor
is for work performed during normal working hours.
The second is for work performed outside normal working hours.
The adjustment factors include the contractor's indirect costs such as overhead, profit, insurance, and bonds. The contracts are awarded to the lowest responsible responsive bidders. The lowest price was determined by weighting each of the two adjustment factors equally and adding them together. Using this procedure, NYCDEP advertised and bid eight separate contracts two each for general construction, electric, plumbing, and HVAC.
Once the contracts were awarded and registered, the Department started ordering work in accordance with the following procedure.
This process generally takes less than 30 days. Straightforward projects can be started within a week.
The possibility of receiving upcoming job orders gives the contractor a continuing financial incentive to provide high quality work on schedule. Each job order represents only a small portion of the total dollar value of the contract. The Department is only obligated to order the minimum $50,000 value of the contract, and that amount is often reached after issuing the first one or two job orders.
If the contractor meets the Department's expectations, the contractor will be asked to perform the next job. If the contractor delivers, the contractor will end up with a steady stream of ongoing projects. The structure of the contract distinguishes Job Order Contracting as a true performance based contracting process. It is in the contractor's best interest to provide the maximum volume of work. The Department has tied future work to current performance. Therefore, the contractor is motivated to provide the highest quality work in the most responsive manner.
The Job Order Contracting program has become a
valuable tool to accomplish capital construction
projects involving the replacement, in kind, of
ordinary itemspiping, valves, lighting, handrails,
grating, and other components essential to a typical
plant. The Department believes that the Job Order
Contracting process will reduce by 6 months the time
traditional contracts now take in the procurement
process. Job Order Contracting will make the
Department more efficient, more responsive to our
internal clientsthe Water Pollution Control
Plantsand save valuable time and money.
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