CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to the second two-year extension of Contract 19-013, Job Order Contracting Services, to Robe, Inc. for an amount not to exceed $630,000 and a total award of $2,630,000
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City Council awarded Contract 19-013 to Robe, Inc. in January 2022 for a two-year term with two, two-year options to extend. The first extension was approved by the City Council in December 2021 and the second extension was approved in December 2023.
Job Order Contracting (JOC) is an approved alternative procurement method to the more traditional bid process and is regularly used for 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.
DISCUSSION:
Over the last few years, departments have begun to use JOC contracting more to complete construction projects rather than the traditional bidding process. In addition, departments are using the contract for higher-value construction work (over $100,000), including the following projects in 2024:
• Commercial Overhead and Pedestrian Door Replacements - $112,004
• Municipal Center Lobby Security Improvements - $296,384
• Police Investigations Interior Renovations - $469,037
• Naper Settlement Sitewide Fiber Optic Improvements - $628,600
|
Year |
Number of Projects |
Total Contract Value |
|
2020 |
2 |
$49,000 |
|
2021 |
9 |
$195,000 |
|
2022 |
21 |
$805,000 |
|
2023 |
20 |
$576,000 |
|
2024 (to date) |
14 |
$1,718,000 |
The transition to using JOC more regularly is the result of two primary factors. First, the entire Procurement team turned over in one year between 2021 and 2022, which resulted in delays until new staff members could be hired and trained. Second, department capital budgets increased over the last few years. Having the JOC contract method available has allowed the City to maintain construction schedules and provide our constituents with the level of service they expect.
The requested $630,000 Change Order will be used for the following seven projects with engineers’ estimates ranging from $25,000 to $190,000:
• Fire Station #7 Flooring - $25,000
• Driver Feedback Sign Installations - $25,000
• Southeast Water Works Flooring - $30,000
• Public Works Loading Shed Expansion - $90,000
• Municipal Facility Door Replacements - $120,000
• Generator and Transfer Switch Replacement - $150,000
• Mansion East Porch Repairs - $190,000
Staff anticipates another Change Order will be recommended to the City Council if the upcoming budget process identifies additional JOC construction projects for 2025. The Budget and Procurement Teams will work with departments to determine which construction projects are more appropriate for JOC vs traditional bidding.
FISCAL IMPACT:
CIP #: Various
Job Order Contracting services are expensed to each department on an as-needed basis. Departments are responsible for ensuring projects completed are within their available budget. The JOC contract ensures access to the services offered. Individual project awards will be brought forth for approval when they are ready to proceed. Staff will monitor all proposed projects under the contract to ensure they are within the approved budget.