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AgendaWelcome, Introductions, Agenda Overview
Department of Administrative ServicesNational Joint Powers Alliance
The Gordian Group:Job Order Contracting and ezIQC®
Owner BenefitsezIQC The First YearHow to Order Work
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Lauren Brown, Contract Analyst
Maintenance, Repair and Operational Procurement Team
Department of Administrative Services /Office of Procurement Services
Job Order Contract
State Term Contract # RS901512Index #GPC008
Central Ohio Organization of Public PurchasersDecember 11, 2012
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Matthew Peterson, Contract Manager
National Joint Purchasing Alliance NJPA
NJPA – Who are we?
Who is NJPA?
National Joint Powers Alliance®
A National Public Contracting Agency – Established under MN State Statute 123A.21
NJPA has legislative authority to facilitate the competitive bidding process – enabled through MN Statute 471.59 (Joint Powers Law)
NJPA serves all government—cities, states and counties—as well as all education both public and private
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Who is NJPA? Really…….
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“Government serving Government”
Public employees, doing their job with a “servant-like”
mentality.
Believe in providing efficiency, value and choice.
There are over 45,000 members of NJPA
Over 2,600 Members in the State of Ohio
$66.2 million in sales Jan 2010 – July 2012
What Separates NJPA. The NJPA Difference
We are a government agency that holds its own contracts
We do not require the services of a lead agency
We answer only to our Members & our publicly-elected Board
of Directors
NJPA works closely with Ohio DAS.
NJPA is the perfect “Gap Filler” to your Ohio State Contracts.
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Employment Staffing Services Facility & Maintenance MRO Food & Food Service Equipment Propane Gas Domestic Appliances Health Solutions Postage & Delivery Services Power Generators Printing & Related Services Supplies-Facility & Office Technology & Communications Uniforms
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A Glimpse of NJPA Categories
Athletic & Recreational Surfaces, Playgrounds & Equipment
Landscape Equipment Public & Mass Transit Athletics & Playground Office Supplies Heavy Equipment E-Procurement Technology Telecommunications Furniture & Storage Construction Equipment Rental Fleet Solutions
The NJPA Difference
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NJPA’s Premier Construction Contract ezIQC®
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ezIQC is a tool that belongs in your procurement tool belt!!!!
Why I need ezIQC as a Procurement ToolThe Issue:
Facility owners need to procure and complete quality construction work for maintenance, repair and minor new construction in a timely, cost efficient and legal manner.
The Problems: Traditional design/bid/build cycle takes too long Limited procurement staff Low bid contractors Too few bidders for small projects High bid prices when contractors are busy High cost of change orders
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Why I need ezIQC as a Procurement Tool
The Solution: EZIQC a competitively bid Indefinite Quantity Construction Contract
The Advantages: Time Savings – reduces procurement time by 90% Cost Savings – cut project costs by an average of 8-15% Higher Quality Work – poor performing contractors are not given
future projects Increases Subcontractor Opportunities – future work only given
to contractors meeting or exceeding subcontracting goals Greater Contractual Control – does not replace existing methods
for completing work
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Why ezIQC Works for the State of Ohio
Highly trained staff available to ensure the process complies with procurement laws and regulations
It is a truly competitive bid, performance based contracting system that was procured in accordance of the State of Ohio DAS.
ezIQC is faster more efficient with less administrative cost
ezIQC proposals come at no cost and no obligation
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Jon Van Daveer, Great Lakes Regional Manager
The Gordian Group
The Question Is• If you had a procurement system which
reduced your administrative costs pre and post construction costs
• And provided for an on-call contractor under contract through a competitive bid process at fixed prices
WOULD YOU USE IT?
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Construction Procurement• JOC – another construction delivery method
• Other options include– In-House Staff– Term Agreements– Unit Price Contracts– Traditional Bid– Design-Build– CM @ Risk
Identify Scope of
Work
Start Construction
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What is Job Order Contracting
Job Order Contracting is: • Firm, fixed price: all tasks are
listed in a unit price book with descriptions,unit of measure and a price to install ordemolish the task
• Competitively bid: all bidderssubmit a set of adjustment factors to the fixedprices in the unit price book
• Indefinite quantity: thecontract is for fixed term and has a guaranteedminimum dollar value and an estimated maximumdollar value. No projects are identified at the time of bidding
• Contract: a contract agreement between owner and contractor is executed with typical boilerplate language and JOC specific language for the master contract
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Proven System• JOC is used to place over $1.5 billion in construction annually
• JOC is more cost efficient than any other project delivery system
• JOC is in use by over 185 major public agencies including:– Federal departments– States– Cities– Counties– Universities– Transportation authorities– Water management agencies– Housing authorities– USPS
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Why Use JOC• Faster Response – Days or Weeks Not Months
• Saves Money
• Improves the Quality of the Work
• Change Orders are Owner Generated and at a Fixed Price
• Provides for Scheduling and Funding Flexibility
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JOC Cost Savings
• Cost of Construction– Contractor offers discount because bidding a large volume of work, not one small project
– Overhead and profit spread over entire value of contract
• Lower Procurement and Administrative Costs– JOC eliminates the need to use the full procurement cycle for each and every project
– Accomplish multiple projects with single solicitation and award
• Fewer Change Orders and Claims– Joint scoping process eliminates misunderstandings about Detailed Scope of Work
– Only Owner generated COs: COs are pre-priced not negotiated.
• Reduction of A/E Costs– Currently many small projects are "designed" primarily for procurement purposes
– JOC projects can be defined with less than a full bid package of plans and specifications
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What is ezIQC
• ezIQC is a Job Order Contract with all the Benefits of a JOC• Cooperative Purchasing Contract Available to Many• Meets State Procurement Requirements• Includes the State Contract Terms and Conditions• Provides for Project Managers to Assist in:
– Project Development– Final Detail Scope– Value Engineering– Project Budget Control– Project Development Control– Review and Validation of the Price with the Scope of Work– Packaging of the Job Order for Issuance of the Purchase Order
So How Does It Work
• A project is entered on www.eziqc.com• A Gordian PM contacts the Agency within 2-4 hours to:
– Discuss the project– Select a Contractor– Establish a date for the Joint Scope Meeting
• Gordian conducts the JSM• Contractor Prices the scope of work• Gordian reviews the price proposal to ensure that it conforms to the
contract documents and the scope of work• Once approved by Gordian the final price, final detail scope of work
and other documents are submitted for the Owners approval
Construction Task Catalog®
• Gordian data base of more than 250,000 work tasks• The tasks represent the “Scope of Work” for the
contract• Price includes
– Prevailing Labor Rates– Local Material– Local Equipment
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Technical SpecificationsCoordinated Construction Task Catalog® and Technical Specifications gives bidders confidence in the pricing structure of the JOC process
CRITICAL POINT!
To realize optimum savings and control, it is essential that each construction task be tied to a concise technical specification!!!
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ezIQC Price Proposal
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ezIQC Price Proposal
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Ohio ezIQC Program – The First Year
• Five Contractors• Nine State Agencies• 20 Political Subdivisions• Over $11M of Work Ordered• Over $10M of Work Pending Purchase Orders• All Types of Projects
• HVAC/Electrical Repairs/Controls/Replacements/Security Upgrades/Boiler Replacement• AST Installations• Parking Lot Repairs/Seal/Strip• Gutter and Exterior Repairs• Roof Repair and Replacement• Door and Window Replacement• Space Renovations/Carpeting/Painting/Wall Demo and Replacement• Retaining Walls/Foundation Repairs/Ramps• ADA Compliance Site Work/Bathrooms• Investigative and Stamped Drawings at direct cost – no mark-up29
ezIQC UsagePolitical Subdivisions Pending Projects Purchase Orders Issued
School Districts (4) 11 6
Universities (1) 3 2
Cities (4) 17 8
Townships, Counties (5) 41 21
Libraries (2) 5 2
Total 77 39
State Agencies
ODNR 37 17
Workers Comp 4 2
Public Safety (4 Divisions) 200 111
ODRC 57 22
Agriculture 4 0
OPF 85 16
Health 2 2
National Guard 19 12
ODOT 38 25
Total 446 207
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Ohio State Cooperative Purchasing• State Term Agreement #RS901512: Index
# GPC008• http://procure.ohio.gov/proc/
viewContractsAwards.asp?contractID=14247 • MBE/EDGE State Requirements• Insurance In-place• Bonding on Project by Project Basis• Bid Factors for Prevailing Wage Rate
Projects and Non-Prevailing Wage Rate Projects
• Factor for Regular Time and OT • Factor for Non Pre-priced Work Tasks• Bid Results were very competitive• Administrative Fees are Built into the
Contractors Bid Factors• Purchase Order Issued Directly to the
Contractor• Bid Factors Adjusted Annually
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The ezIQC Contractors• Zone 1: NW
– General Contractors• Variety Contractors• F. H. Paschen
– Heating• The K Company
• Zone 2: NE– General Contractors
• Variety Contractors• F. H. Paschen
– Heating• The K Company
– Electrical• R & K Electrical
• Zone 5: SE– General Contractors
• The Lusk Group• F. H. Paschen
– Heating• The K Company
• Zone 3: CENTRAL– General Contractors
• The Lusk Group• F. H. Paschen
– Heating• The K Company
– Electrical• Capital City• Zone 4: SW
– General Contractors• The Lusk Group• F. H. Paschen.
– Heating• The K Company
– Electrical• Whalen Electric
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Click link to view video: http://www.youtube.com/user/TheGordianGroup
ezIQC – Start Using it Today
• Simply go to http://www.ezIQC.com
• Enter Your Name, Contact Information and Project Description
• ezIQC Staff Will Contact You and Walk You Through the Entire Procurement Process
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Questions and Discussion
Rick Pettit
Zone 3, 4 & 5
The Gordian Group
614-306-5783
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Matthew [email protected]
Nathan Fox
Zone 1 and 2
The Gordian Group
419-450-3972
Contacts
Testimonials
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