CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of the first two-year extension to Contract 19-013, Job Order Contracting Services, to Robe, Inc. for future projects as needed
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Job Order Contracting (JOC) services is an approved alternative procurement method to the more traditional bid process used for government construction projects. In the JOC procurement method, the City and contractor partner to develop an overall scope of services and individual tasks associated with the project. Typically, there are no construction documents which makes JOC similar to the design-build process.
JOC is a fixed-price indefinite-quantity contract that may be used to perform any work on facilities or properties under the jurisdiction of the City 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.
Under JOC, the contractor furnishes management, labor, materials, equipment and engineering support needed to perform work. The JOC includes a Construction Task Catalog® (CTC), which was developed by the City of Naperville and based on the use of experienced labor and high-quality materials. All unit prices incorporate prevailing area cost data. The labor prices are based on prevailing wages in DuPage County, as determined by the Illinois Department of Labor.
JOC may also be used as a joint purchase agreement 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 State of Illinois. To offset the City’s administrative costs, the JOC contract includes a 0.5% administrative fee, which is levied against all JOC projects performed for non-City entities. As a result, as entities across the state utilize the City’s JOC program, the administrative fee assessed to those entities is paid back to the City. In 2020, the City collected $16,695.43. In 2021, the City has collected $2,000 to date.
The City has offered JOC opportunities since 2010 and in January 2020, the City Council awarded a two-year JOC contract to Robe, Inc., the lowest responsive bidder based on a proposed price adjustment factor applied to the CTC. The contract allows for an annual economic price adjustment not to exceed the prior 12-month average of the Construction Cost Index (CCI) or 3%, whichever is less. In 2021, Robe’s adjustment factor increased by 3%.
The City’s contract with Robe may be extended for two, two-year terms with Council approval. There is no minimum or maximum amount that the City must spend under the contract. Projects are identified on an ongoing basis and quoted using fixed pricing established within the contract.
Each project deemed as a potential candidate for JOC is treated as a standalone project and follows the City’s established procurement authorization thresholds. Projects that exceed $25,000 are submitted to the City Manager for approval and those exceeding $100,000 are submitted to the City Council for approval.
DISCUSSION:
Robe Inc. performed well as the City’s JOC provider during the original two-year term. In 2020, the City issued six Task Orders to Robe through JOC for a total of $283,885.60. In 2021, the City has issued 14 Task Orders to date for a total of $312,938.07.
Below is a sample set of construction services Robe Inc. has provided:
2020 JOC Construction Projects:
1. Electric Utility - Atrium renovation
2. DPW -Van Buren parking deck - 3rd level sheer connectors and sealants
3. Naper Settlement - grounds restoration and drainage repairs
4. Naper Settlement - additional security cameras and card reader upgrade
5. Water Utilities - Springbrook Water Reclamation Center (SWRC) and Civil Environmental Engineering Center (CEEC) - security cameras, fence and gates
2021 JOC Construction Projects:
1. DPW - security fence for Fleet Services and Operations
2. DPW North Operations Salt Dome - garage door and roof repairs
3. DPW - Van Buren parking deck - security fence
4. Fire Department - Station #2 - roof framing and repairs
5. Fire Department - Station #4 - soffit and insulation repairs
6. Police Department - ADA improvements, entrances
JOC project pending completion in 2022:
1. Water Utilities - North Operations Center - fence along City and residential property, security cameras, fence and gates
The term of the first optional renewal is January 1, 2022, through December 31, 2023 and includes a maximum 3% increase to the economic price adjustment factor on an annual basis. There is one, two-year optional renewal term remaining.
FISCAL IMPACT:
CIP: Various
Job order contracting services are expensed on an as-needed basis and applied to the department responsible for each project. All projects qualifying for a contractor under the JOC will be assessed against the 2022 Budget, which is pending Council approval, to ensure expenses do not exceed authorized spending for the year.