CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 25-142, Job Order Contracting Services, to McDonagh Demolition, Anchor Mechanical, Inc., Pacific Construction Services, Inc., SMB Contracting, Inc. on an as-needed basis for a two-year term
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW: N/A
BACKGROUND:
The City has been successfully using the job order contracting (JOC) method of procurement since at least 2011. JOC is an approved alternative procurement method to the more traditional bid process typically used in the procurement of government construction projects. In the JOC procurement method, the City and contractor work together to develop an overall scope of services and individual tasks associated with the scope. Typically, there are no construction documents, so it is similar to a design-build project in some respects. JOC has proven to be a low-cost, efficient and effective solution for multiple trade projects.
With no additional extensions available under the existing contract, in August 2025, the Finance Department issued Bid 25-142, Job Order Contracting Services, to solicit contractors to perform various construction projects for the City of Naperville through the JOC procurement method and to be used by other entities through a joint purchase agreement.
DISCUSSION:
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Advertisement Date: |
08/05/2025 |
Notices Sent: |
1135 |
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Opening Date: |
09/09/2025 |
Planholders: |
59 |
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Proposals Received: |
17 |
Bids were received from the following vendors:
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Vendor Name |
Award Criteria Figure |
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McDonagh Demolition |
0.7763 |
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Anchor Mechanical, Inc. |
0.8487 |
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Pacific Construction Services, Inc. |
0.9008 |
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SMB Contracting, Inc. |
0.9067 |
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Robe, Inc. |
0.9355 |
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Bear Construction Company |
0.9995 |
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Granite Construction Company |
1.0000 |
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Structures Construction |
1.0470 |
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Tyler Lane Construction |
1.0495 |
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ALFA Chicago, Inc. |
1.1157 |
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Tiles in Style, LLC |
1.1700 |
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John Keno & Company |
1.1940 |
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Troop Contracting, Inc. |
1.2780 |
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JOS Services, Inc. |
1.2980 |
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CORE Construction |
1.3702 |
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Mechanical, Inc./b/a Helm Service |
1.3824 |
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Lite Construction, Inc. |
1.8560 |
The Gordian Group, the City’s JOC administrator, developed an equation to determine the lowest bidder. Each bidder was asked to provide six adjustment factors to delineate work performed for City departments or other entities, during normal or outside normal working hours, and for non-priced tasks. A multiplier was then associated with each adjustment factor, which demonstrated the anticipated amount of work that would be performed based on historical use information.
Due to the success of the JOC program, staff recommends increasing the number of authorized contractors from one to two. The second contractor will be used if the primary contractor is unable to perform general contractor duties and will essentially be used as an overflow contractor. This will assist in keeping up with the project needs of City departments.
McDonagh Demolition and Anchor Mechanical, Inc. provided the lowest adjustment factors and will be able to perform any work on facilities or properties of the City of Naperville including, but not limited to, interior and exterior building renovations and repairs, site work, electrical, plumbing, HVAC, concrete, masonry, maintenance of bridges, roofing replacement and/or repairs, streetscape repairs and improvements to City sites. To offset the City’s costs to maintain the JOC contract, the bid for City projects includes a 1.95% JOC system licensing fee, which is added to the cost of a JOC project and paid for by the contractor.
Pacific Construction Services, Inc. and SMB Contracting, Inc. are also recommended to be included in the award to perform JOC construction projects under joint purchase agreements between the City, Naperville Community Unit School District 203, Indian Prairie School District 204 and the Naperville Park District, as well as other agencies located within the six-county Chicago metropolitan area and the State of Illinois. The bid includes a 6.25% JOC system licensing fee for other entities, which is added to the cost of a JOC project and paid for by the contractor.
Staff recommends McDonagh Demolition, Anchor Mechanical, Inc., Pacific Construction Services, Inc., SMB Contracting, Inc. for the award as the lowest responsive and responsible bidders for the procurement of construction services, as defined by Section 1-9B-7 of the Procurement Code (RBO-Qualified).
There is no minimum amount the City must spend under this contract, and the estimated value of work is $2,000,000 annually. Staff will seek proposals for specific projects that meet the criteria for consideration as a JOC project. Once identified, projects will be priced using the fixed prices in the contract. Projects will be awarded on an individual basis by the Chief Procurement Officer, City Manager, or City Council, depending on the value of the award.
The term of this contract is two years from the date of award to December 31, 2027, with two, two-year options to extend.
FISCAL IMPACT:
CIP#: Various
The award of this contract does not have any direct fiscal impact, as it does not guarantee work to any of the contractors awarded. Once work is authorized under the JOC method of procurement, project expenses will be allocated to the respective department budgets. The fiscal impact of each project will be noted at the time of its award.