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TO: Mayor Richard C. Irvin
FROM: Jolene Coulter, Director of Purchasing
DATE: August 11, 2020
SUBJECT:
A Resolution awarding the Job Order Contracting Vendor Services (JOC) for the City of Aurora to F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL.
PURPOSE:
To create a Job Order Contracting Vendor Services (JOC) for the City of Aurora that will provide another efficient method to effectively obtain competitive pricing for a variety of capital improvement projects and also establish an option to allow for other entities to piggyback on our program.
BACKGROUND:
The City of Aurora has piggybacked on Job Order Contracting Vendor Services (JOC) from other entities for several years. JOC purchasing is a method to have a third party create the competitive pricing system using the RS Means for all subcontractors and services needed for a given project. The RS Means is a division of Reed Business Information that provides cost information to the construction industry so contractors in the industry can provide accurate estimates and projections for their project costs. It has become a data standard for government work in terms of pricing, and is widely used by the industry as a whole. This shortens the time it takes to obtain pricing for these projects, yet provides a competitive and transparent process to ensure the best value for the City.
Many professional firms can act as the administrator of a JOC. The intent of the Request for Proposal was for the City to establish our own program to provide efficiencies in obtaining pricing, which will save staff time, be available for emergencies, and create a possible revenue stream from other entities piggybacking on our own program.
DISCUSSION:
The City published the Request for Proposal on Tuesday, May 19, 2020 in the Aurora Beacon News, DemandStar (a free nationwide distribution notification for solicitations) and on the City's website. Five responses were received on June 10, 2020 from potential contractors with varying level of experience with our request.
The Contractors were evaluated on the following criteria:
1) Vendor experience in assisting organizations similar to City of Aurora with project similar in size and scope to Aurora’s 2020 Planned Project List provided in the Introduction to the Scope of Work. (5%)
2) Vendor experience establishing and operating JOC programs for other entities (25%)
3) Quality and depth of references (20%)
4) Program Manager qualifications and experience (10%)
5) Vendor use of local subcontractors (15%)
6) JOC Program Vendor Management Fee (25%)
This was a Request for Proposal, therefore Local Vendor Preference did not apply.
A scoring recap is attached as Exhibit A. A copy of the Request for Proposal is attached as Exhibit B, a list of eligible projects that could be used for these services is attached as Exhibit C and the proposal submitted by F.H. Paschen, S.N. Nielsen & Associates, LLC is attached as Exhibit D.
The review committee consisted of Public Works/Engineering, Facilities, Purchasing, Finance and Administration. The overall highest rated firm was unanimous amongst all members.
The overall experience presented by F.H. Paschen, S.N. Nielsen & Associates, LLC with starting and running a JOC program, the JOC start up timeline, and the number of local sub-contractors to be used was very detailed. The number of sub-contractors they listed that were already being used by F.H. Paschen, S.N. Nielsen & Associates, LLC that will be ready to move immediately in such cases where an immediate repair/operation is needed was helpful in our review.
F.H. Paschen, S.N. Nielsen & Associates, LLC was one of two contractors that submitted proposals where there will not be any additional costs incurred during the contract. Some had additional management fees and added direct/indirect costs (plus markup) for services not covered by the RS Means. F.H. Paschen's costs was inclusive of everything we would require to complete a project.
Our previous experiences have been very positive with F.H. Paschen, S.N. Nielsen & Associates, LLC, where they complete projects as scheduled and on budget. (ie. The lower level of DSC, Elmslie/Hogan building repairs and the Route 59 Transit Center Staircase Replacement are just a few)
Funding for the projects will be charged to the Department/Division associated with the repair/work. All projects over $25,000 will still be brought forth for Committee/City Council approval prior to the start of work. Any projects under $25,000 will move forward with the approved cost structure.
F.H. Paschen, S.N. Nielsen & Associates, LLC will also coordinate and encourage the use of the City's JOC program for other agencies/entities to use. There would be a fee added to non-City projects that F.H. Paschen, S.N. Nielsen & Associates, LLC would charge and pass through to the City of Aurora. The proposed fees are attached as Exhibit E. Intergovernmental agreements would be entered into, prior to outside agencies piggybacking on our JOC program.
The initial contract would be upon award through December 31, 2021 with the option of three (3) one year extensions upon mutual consent between the City of Aurora and the Contractor.
IMPACT STATEMENT:
The intent is to provide efficiencies and time savings to complete projects with an already agreed upon cost, and create a possible revenue stream from other entities piggybacking on our own program. Not awarding this will continue the status quo with delays in getting projects complete due to the time to create the specifications, formally bid, and award through the Committee/Council approval process.
RECOMMENDATIONS:
Request authorization for the Director of Purchasing to award the Job Order Contracting Vendor Services (JOC) for the City of Aurora to F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution awarding the Job Order Contracting Vendor Services (JOC) for the City of Aurora to F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, The City of Aurora finds it desirable to hire a Contractor to perform and manage a Job Order Contracting Vendor Services on behalf of the City; and
WHEREAS, The Request for Proposal was formally noticed on May 19, 2020 with five contractors submitting sealed proposals for evaluation; and
WHEREAS, The initial contract from award through December 31, 2021 with the option of three (3) one year extensions upon mutual consent between the City of Aurora and the Contractor for which the Director of Purchasing shall have the authority to take any and all steps necessary to execute and implement the extensions stated in the contract without further approval required by City Council; and
WHEREAS, Each project cost will be expensed by the corresponding Department/Division budget; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: Resolution authorizing the Director of Purchasing to enter into an agreement to award the Job Order Contracting Vendor Services (JOC) for the City of Aurora to F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL.