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TO: Mayor Richard C. Irvin
FROM: Jim Birchall, Chief Public Facilities Officer
Jolene Coulter, Director of Purchasing
DATE: December 10, 2024
SUBJECT:
Resolution extending the contract for Job Order Contracting Services (JOC) with F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL.
PURPOSE:
To continue services with F.H. Paschen as the City's Job Order Contracting (JOC) vendor that will continue an efficient way for Public Facilities and other departments to obtain competitive pricing for a variety of capital improvement projects and maintenance/repair projects allowing the option for other entities to piggyback on our program.
BACKGROUND:
After many years of the City of Aurora piggybacking on other entities JOC agreements, the City published a Request for Proposal in 2020 to create our own JOC program(R20-221). 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 current agreement expires December 31, 2024. After years of experience with F.H. Paschen, S.N. Nielsen & Associates, LLC, the experiences have been very positive 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 $50,000 will still be brought forth for Committee/City Council approval prior to the start of work. Any projects under $50,000 will move forward with the approved cost structure.
F.H. Paschen, S.N. Nielsen & Associates, LLC also coordinates and encourages 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 A. Intergovernmental agreements would be entered into, prior to outside agencies piggybacking on our JOC program.
While just a few outside agencies have used this program, we've received approximately $91,000.00 in fees from those entities projects. We will continue to have joint open houses, inviting other cities/villages, park districts, etc. in to discuss the positives with using our JOC. We have a few cities/villages looking to use the program in the near future. With projects through the 3rd Quarter 2024, fees received from F.H. Paschen have been $529,795.
With this extension, F.H. Paschen has increased the pass through fees received by the City. For example, for the 3rd Quarter 2024 fees received by the City were $111,037.71 with the new rate the fees would be $138,305.55 an increase of $27,267.84.
IMPACT STATEMENT:
The intent is to provide efficiencies and time savings to complete projects with an already agreed upon cost and create a revenue stream from other entities piggybacking on our program. Not awarding this will cause delays in getting projects being completed due to the time to create the specifications, formally bid, and award through the Committee/Council approval process and increase costs for architectural/engineering services required to produce a complete bid document for publication.
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 ________________
title
A Resolution authorizing a contract extension to F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL for Job Order Contracting Vendor Services (JOC) with the City of Aurora.
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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 continue services with F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL 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 was formally awarded with Resolution R20-221; and
WHEREAS, The extension will be for one year beginning January 1, 2025, with optional 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 a contract extension with F.H. Paschen, S.N. Nielsen & Associates, LLC of Chicago, IL to perform Job Order Contracting Vendor Services (JOC) for the City of Aurora.