Title
1-Step and 2-Step Job Order Contracting Services Amendments (Ordinance S-45430)
Description
Request to authorize the City Manager, or his designee, to amend separate Job Order Contract (JOC) master agreements listed in Attachment A, to increase the individual project limit authorized under each JOC master agreement to an amount not to exceed $4 million. The change will help streamline the process for completing large City capital projects, including the Council-directed accelerated street maintenance program, as well as other capital improvement projects. This authorization will not change the Council-approved JOC master agreement total contract capacity.
Report
Summary
JOC contractors are used on an as-needed basis to provide various construction services Citywide in support of all City departments.
The amendments are necessary to adjust the existing per project limit of $2 million, which was established more than 15 years ago, and prior to the Great Recession, to account for market-related labor and materials price increases and to provide a more streamlined project delivery approach for construction projects that cost less than $4 million. Increasing the per project (job order agreement) limit to $4 million also allows for greater flexibility and efficiency in administering the construction work.
These JOC contractors will still be responsible for fulfilling the Small Business Enterprise program requirements included in each of their JOC master agreements by soliciting bids from prequalified subcontractors and to perform the work using the City's subcontractor selection process.
Procurement Information
All JOC contractor selections were made using either one-step (qualifications-based) or two-step (qualifications and price-based) selection processes set forth in section 34-603 and section 34-604 of the Arizona Revised Statutes (A.R.S.).
Contract Term
The terms of the existing JOC master agreements will not change. For each of the existing JOC master agreements, the contract terms are for up to five years, or up to the Council-approved contract capacity, whichever occurs first.
Financial Impact
With approval of this request, the City Manager, or his designee, will be authorized to execute job order agreements performed under these JOC master agreements for up to $4 million each. In no event will any job order agreement exceed this limit without additional Council approval to increase the limit.
Funding is available in the Citywide departments' Capital Improvement Program and Operating budgets. The Budget and Research Department will review and approve funding availability prior to issuance of any Job Order Agreement. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.
Concurrence/Previous Council Action
Council has previously approved the JOC master agreements listed in Attachment A through S-Ordinances.
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters, Deanna Jonovich and Mario Paniagua, and the Aviation, Parks and Recreation, Water Services and Street Transportation departments, and the City Engineer.