Item Coversheet

Competitive Bid Reports - C2  C




COMMISSION MEMORANDUM

TO:Honorable Mayor and Members of the City Commission 
FROM:Alina T. Hudak, City Manager 
DATE:July  26, 2023
 



SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2023-096-KB FOR JOB ORDER CONTRACTING (JOC) SERVICES FOR HORIZONTAL, VERTICAL, AND SEAWALL/COASTAL CONSTRUCTION; AUTHORIZING THE ADMINISTRATION TO ESTABLISH A POOL OF PRE-QUALIFIED CONTRACTORS AS SET FORTH IN ATTACHMENT A FOR THE CATEGORIES OF HORIZONTAL, VERTICAL, AND SEAWALL/COASTAL CONSTRUCTION; AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE AGREEMENTS WITH EACH OF THE RECOMMENDED PROPOSERS UPON THE CONCLUSION OF SUCCESSFUL NEGOTIATIONS WITH EACH VENDOR; AND FURTHER REQUIRING THAT ANY PROJECT TASK ORDER WITH A VALUE GREATER THAN $2 MILLION BE SUBJECT TO PRIOR APPROVAL BY THE MAYOR AND CITY COMMISSION. 

RECOMMENDATION

It is recommended that the Mayor and City Commission approve the Resolution accepting the City Manager’s recommendation pertaining to the proposals received, pursuant to Request for Qualifications (RFQ) 2023-096-KB, for job order contracting (JOC) services for horizontal, vertical, seawall/coastal construction. The Resolution authorizes the Administration to establish a pool of prequalified contractors, as set forth in Attachment A, for the categories of horizontal, vertical, and seawall/coastal construction. The Resolution also authorizes the City Manager and City Clerk to execute an agreement upon the conclusion of successful negotiations and requires that any project task order with a value greater than $2 million be subject to prior approval by the Mayor and City Commission. Any task order for a project with a value of up to $2 million will be approved by the City Manager or designee and will continue to be reported monthly to the Mayor and City Commission.

 

The solicitation is currently under the cone of silence.

BACKGROUND/HISTORY

JOC is a project delivery method utilized by many public organizations to expedite construction projects through competitively bid, fixed price, multi-year contracts. JOC contracts are based on a construction task catalog, which includes unit pricing for over 300,000 tasks potentially needed on a project, and an agreed-upon multiplier, which covers the contractor’s overhead, insurance, and profit. JOC has been used extensively for over 40 years by federal, state, and local organizations. A white paper on the JOC process is attached hereto as Attachment B.

 

One of the most important considerations in a JOC process is a comprehensive and accurate construction task catalog (“CTC”). To that end, the City has partnered with The Gordian Group, the nation’s leading provider of facility and construction cost data, software, and services for the JOC process and all phases of the building lifecycle. The Gordian Group prepares a CTC that is issued with the solicitation and is based on construction task pricing in the local area. The CTC may be adjusted annually based on local market pricing fluctuations.

 

When a project is ready for construction, a contractor and the organization work together to develop the task order for the construction phase of the project based on the CTC tasks needed for the project. The multiplier, which is preset in the contract, is applied to the sum of all CTC tasks that will be required for the project. The multiplier includes the contractor’s overhead, insurance, and profit. The steps of the task order development phase are outlined below.

 

Step 1 – Joint Scope Meeting: City and contractor review project and design details.

Step 2 – Price Proposal: Contractor prepares a detailed price proposal by selecting the tasks in the CTC needed for the project. The contract multiplier is applied to the sum of all CTC tasks.

Step 3 – Price Proposal Review: City reviews price proposal to ensure that the correct CTC tasks, quantities, and multiplier have been applied.

Step 4 – Task Order Approval: Task orders with a value of up to $2 million will be approved by the City Manager or designee. Task orders with a value greater than $2 million to be subject to prior approval by the Mayor and City Commission.

Step 5 – The contractor provides the bonds (if applicable) and the work may commence.

 

Through JOC, projects can move from design to construction in a matter of weeks, not months as is typical when a separate procurement must be processed for each project. The ability to quickly assign competitively selected contractors to time-sensitive projects, including projects for maintenance or repairs and projects funded through general obligation bonds, is critical to expediting the City’s capital program and maintenance needs.

 

On October 16, 2019, the Mayor and City Commission approved the award of contracts to 18 contractors pursuant to ITB 2019-257-KB for job order contracting services in various categories of work. The Agreements for the categories of vertical (building), horizontal (roadwork or civil), and seawall/coastal are scheduled to expire in November 2023. As a result, the Administration prepared Request for Qualifications (RFQ) 2023-096-KB seeking proposals for a replacement contract.

ANALYSIS

On February 1, 2023, the Mayor and City Commission authorized the issuance of Request for Qualifications (RFQ) 2023-096-KB for Job Order Contracting (JOC) services for horizontal, vertical, seawall/coastal construction.  On February 3, 2023, the RFQ was issued. A voluntary pre-proposal conference was held on February 16, 2023, to provide information to proposers submitting a response. The Procurement Department issued bid notices to 57,300 companies through the e-procurement system, with 123 prospective bidders accessing the advertised solicitation. RFQ responses were due and received on May 19, 2023. The City received proposals from the following contractors in each category:

 

Vertical Construction

Carivon Construction Co.

F. H. Paschen

Florida Palm Construction, Inc.

H.A. Contracting Corp

Harbour Construction, Inc.

Lee Construction Group, Inc.

Team Contracting, Inc.

Unitech Builders Corp.

 

Horizontal Construction

Amici Engineering Contractors LLC

Carivon Construction Comp.

David Mancini Sons, Inc.

F.H. Paschen

Harbour Construction, Inc.

JCI International, Inc.

Lanzo Construction Co.

Lee Construction Group, Inc.

The Stout Group, LLC

Unitech Builders Corp.

 

Seawall and Coastal Construction

Adventure Environmental, Inc.

CHC Marine Services

David Mancini Sons, Inc.

Harbour Construction, Inc.

In Depth, Inc.

Kearns Construction Co.

Lee Construction Group

Shoreline Foundation, Inc.

The Stout Group LLC

Unitech Builders Corp.

 

On May 2, 2023, the City Manager appointed the Evaluation Committee via LTC # 200-2023. The Evaluation Committee convened on June 20, 2023, to consider the proposals received. The Committee was comprised of Elizabeth Estevez, Parks Capital Projects Manager, Parks, and Recreation Department; Herman Fung, Project Manager, Capital Improvement Projects Office; Francisco Garcia, Division Director, Facilities and Fleet Management Department; Pablo Gomez, Senior Capital Projects Coordinator; Office of Housing and Community Services, Matthew LaPera, Construction Manager, Public Works Department. The Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance, and the Government Sunshine Law. The Committee was also provided with general information on the scope of services and a copy of each proposal. The Committee was instructed to score and rank each proposal pursuant to the evaluation criteria established in the RFQ. The evaluation process resulted in the ranking of proposers, as noted in Attachment B and below.

 

Vertical Construction

1st ranked –         Team Contracting, Inc.

2nd ranked –        Harbour Construction, Inc.

3rd ranked –        Lee Construction Group, Inc.

4th ranked –        H.A. Contracting Corp

5th ranked –        Unitech Builders Corp.

6th ranked –        F. H. Paschen

7th ranked –        Carivon Construction Co.

8th ranked –        Florida Palm Construction, Inc.

 

Horizontal Construction

1st ranked –         Amici Engineering Contractors LLC

2nd ranked –        Harbour Construction, Inc.

3rd ranked –        David Mancini Sons, Inc.

4th ranked –        Lee Construction Group, Inc.

5th ranked –        Unitech Builders Corp.

6th ranked –        Lanzo Construction Co. (tied)

6th ranked –        The Stout Group, LLC      (tied)

8th ranked –        F.H. Paschen (tied)

8th ranked –        JCI International, Inc. (tied)

10th ranked –      Carivon Construction Comp.

 

Seawall/Coastal Construction

1st ranked –         Kearns Construction Co.

2nd ranked –        Shoreline Foundation, Inc.

3rd ranked –        In Depth, Inc.

4th ranked –        CHC Marine Services (tied)

4th ranked –        Harbour Construction, Inc. (tied)

6th ranked –        David Mancini Sons, Inc.

7th ranked –        Adventure Environmental, Inc.

8th ranked –        Lee Construction Group

9th ranked –        Unitech Builders Corp.

10th ranked –      The Stout Group LLC

 

The current agreement for JOC services has multiple contractors awarded for each category of work. During the term of the current agreement, the task orders issued have been issued for approximately 40 projects, with an average project cost of approximately $400,000, totaling approximately $16 million. Accordingly, based on prior usage of the services and the projected volume of work for which the JOC services would be required, staff recommends awarding to the following top-ranked contractors in each category. A summary of each firm is available upon request.

 

Vertical Construction

1st ranked –         Team Contracting, Inc.

2nd ranked –        Harbour Construction, Inc.

3rd ranked –        Lee Construction Group, Inc.

4th ranked –        H.A. Contracting Corp

 

Horizontal Construction

1st ranked –         Amici Engineering Contractors LLC

2nd ranked –        Harbour Construction, Inc.

3rd ranked –        David Mancini Sons, Inc.

 

Seawall/Coastal Construction

1st ranked –         Kearns Construction Co.

2nd ranked –        Shoreline Foundation, Inc.

3rd ranked –        In Depth, Inc.

4th ranked –        CHC Marine Services (tied)

4th ranked –        Harbour Construction, Inc. (tied)

6th ranked –        David Mancini Sons, Inc.

 

 

The Administration will typically select a contractor for a project on a rotational basis to maintain equity among the awarded contractors. For unique projects requiring a specific competency, the requesting department may review contractor qualifications and recommend a specific contractor based on unique skills or experience. 

SUPPORTING SURVEY DATA

Not Applicable.

FINANCIAL INFORMATION

The Administration will enter into negotiations with the selected contractors to include but not be limited to applicable contract provisions and the adjustment factors that will be applicable to each category of work. The City may equalize the adjustment factor amongst all contractors for similar categories.  Notwithstanding the preceding, the City is in no way obligated to enter into a contract with the selected Proposer(s) in the event the parties are unable to negotiate a contract.

 

During the term of the current agreement, the City has project task orders totaling approximately sixteen million dollars, with an average project size of $400,000. However, the City anticipates that the volume of work pursuant to the JOC program will increase due to recent bond programs approved and as more projects require expediting, including resiliency projects such as the city-wide seawall initiative and deferred maintenance projects.

 

It is anticipated that the majority of projects issued under this RFQ will be valued below $2 million. Projects above $2 million will require prior approval by the Mayor and City Commission. Any task order for a project with a value of up to $2 million will continue to be included in the Procurement Report LTC issued monthly.

CONCLUSION

The JOC program will continue to provide a resource to expedite smaller, critical needs and GO Bond projects through competitively selected contractors that can be quickly deployed. After considering the submissions, the Evaluation Committee process, the lists of capital projects and GO Bond projects for which the JOC program is appropriate, it is recommended that the Administration be authorized to negotiate with following contractors in each category of work in order to establish a pool of prequalified JOC contractors for expediting future work.

 

Vertical Construction

Team Contracting, Inc.  

Harbour Construction, Inc.

Lee Construction Group, Inc.

H.A. Contracting Corp

 

Horizontal Construction

Amici Engineering Contractors LLC           

Harbour Construction, Inc.          

David Mancini Sons, Inc.               

 

Seawall/Coastal Construction

Kearns Construction Co.

Shoreline Foundation, Inc.          

In Depth, Inc.

CHC Marine Services

Harbour Construction, Inc.

David Mancini Sons, Inc.

 

Upon approval of this item, staff will negotiate with the recommended firms to establish the terms and conditions and the multiplier (i.e., overhead, insurance, and profit) that will be applied to the sum of all CTC tasks as a percent.

 

As has been stated, the JOC program provides a competitively awarded process for expediting many projects as the contractors are preselected and can be quickly assigned a project without the need to issue a competitive solicitation every time a project is identified. For the contract that may result from this RFQ, the Administration anticipates that many of the capital renewal and replacement or priority projects will continue to be expedited through the JOC program. JOC was also helpful in completing a number of quick-win projects from the 2018 GO Bond. In addition, JOC is anticipated to be utilized on smaller projects (less than $2 million) that will need to be expedited as part of the GO Bond – Arts and Culture, including portions or repair/replacement projects at the Bass Museum, Miami City Ballet, The Colony Theater, the Miami Beach Botanical Garden, Art Deco Welcome Center, the North Beach Oceanfront Center (UNIDAD), and others. Any project with a value greater than $2 million will require approval of the Mayor and City Commission. Also, the Public Works Department conducted a seawall prioritization effort that identified 66 segments that require work, with approximately 15,000 linear feet of seawall construction planned. The Department is anticipating expediting completion of these projects through the JOC program.

 

For the reasons stated herein, it is recommended that the Mayor and City Commission approve the Resolution authorizing the Administration to establish a pool of prequalified contractors, as set forth in Attachment A for the categories of horizontal, vertical, and seawall/coastal construction; and further authorizing the City Manager and City Clerk to execute agreements with each of the foregoing proposers upon conclusion of successful negotiations providing that any task order for a specific project which is greater than $2 million be subject to prior approval by the Mayor and City Commission. Any task order for a project with a value of up to $2 million will continue to be reported to the City Commission monthly.

 

 

Applicable Area

Citywide
Is this a "Residents Right to Know" item, pursuant to City Code Section 2-14? Does this item utilize G.O. Bond Funds?
No No 
Legislative Tracking
CIP/Facilities/Parks/Public Works/Transportation/Procurement

ATTACHMENTS:
Description
Attachment A - Recommended Contractors
Attachment B - JOC White Paper
Attachment C - Evaluation Committee Results
Resolution