Presenters Benjamin Huff, NYCDEP Paul R. Schreyer, The Gordian Group

Transcription

1 JOC Case Study: New York City's Toilet Replacement Project Presenters Benjamin Huff, NYCDEP Paul R. Schreyer, The Gordian Group

2 Agenda Part 1: The Problem Part 2: Job Order Contracng Overview Part 3: The Soluon - Applicaon of JOC Part 4: Video Part 5: Addional Applicaons of JOC Part 6: Quesons and Answers

3 Part 1: The Problem

4 Water Supply System 2,000 square mile watershed Serves 9 million people (50% of State) 580 billion gallon capacity deliver 1 to 1.1 billion gallons/ day

5 Water Distribution & Wastewater Collection E Deliver and collect water through 7,000 miles of water mains and 7,400 miles of sewers E Maintain more than 109,000 fire hydrants and 148,000 catch basins 5

6 Wastewater Treatment E Treat an average of 1.3 billion gallons of wastewater per day E Operate 14 in-city wastewater treatment plants 6

7 Customer Service Bill and collect more than $2.5 billion in water and sewer charges from 836,000 rate-paying customers each year Install 800,000 Automated Meter Reading (AMR) devices Manage programs for customers in financial distress Conduct outreach to business communities through the Economic Development Unit 7

8 Capital Construction Manage $16 billion of projects in construction or design Provide in-house engineering and design services to DEP s water supply, distribution, and treatment divisions Provide information to the public through DEP s capital projects website 8

9 Sustainability Implement the NYC Green Infrastructure Plan Accelerate regulatory reform to incorporate sustainability principles into clean water regulations and initiatives Monitor and protect the water quality of New York Harbor 9

10 Green Infrastructure Green Roof Blue Roof Porous Pavement Bioswale 10 10

11 Historical Water Demand and Population Distribution has declined more than 30% since the early 1990s despite increasing population Since 2009, water usage has been below the 1960s drought-of-record 1,600 1,500 Calendar Year Demand (MGD) New York City Populaon 8.4 million Water Demand (MGD) 1,400 1,300 1,200 1, : Populaon (Millions) 1, : [Y VALUE] MGD 2015: [Y VALUE] MGD Official July 2014 New York City Department of City Planning Estimate. 11

12 Cause for Demand Management Delaware Aqueduct has significant leakage in the Rondout-West Branch Tunnel (RWBT) section RWBT needs to be fixed to ensure future stability and supply During RWBT shutdown to repair the tunnel, NYC will need water from other sources Water supply needs are based on planned hydrology and shutdown duration

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14 Demand over Development

15 Water Demand Management Working towards a 5% or 50 MGD goal for reductions in current demand Retrofit and replace water Retrofit replace water fixturesand at Schools, Parks, fixtures at Schools, Parks, WWTPs, NYCHA, FDNY and WWTPs, NYCHA, FDNY and Colleges Colleges Replace inefficient fixtures in Replace 800,000 fixtures in residentialbuildings buildings residential Createvoluntary voluntary conservation Create conservation programsinin non-residential programs non-residential sectorsand and provide cost sectors provide cost sharing sharing Continueleak leak detection, Continue detection, pressuremanagement, management, and pressure and metering metering Adopt Shortage Rules, AdoptWater Water Shortage Rules, and rates andemergency emergency rates Develop management Developdemand demand plans for 10 upstate management planswholesale for 10 customers and implement them upstate wholesale customers

16 Strategy 1: MWEP Schedule Estimated 9.3 MGD in water savings by completion of MWEP in 2018.

17 Part 2: Job Order Contracng Overview

18 Job Order Contracting (JOC) Provides: ü A Means to Accomplish a Substantial Number of Individual Construction Projects with a Single Competitively Bid Contract ü On-Call Contractors Ready to Perform a Series of Projects at Different Locations for Competitively Bid Prices Type of Projects Completed in JOC: ü Straightforward, Renovation, Upgrade, Replacement in Kind Projects ü Projects that Exceed Competitive Bidding Threshold JOC is an innovative method of procurement, but construction is delivered in the typical way

19 Introduced In the United States in 1985 ü Dept. of Defense, NASA, etc. Over 1,000 Contracts Currently in Use Over $1.5 Billion of Construction Placed Annually Implemented by States, Counties, Major Cities, Universities & Private Owners ü United States Postal Service ü Los Angeles Unified School District ü City of Chicago Department of General Services ü New York City Department of Education ü The Pennsylvania State University ü New Jersey Department of Transportation ü Georgetown University

20 Traditional Design-Bid-Build Procurement can be Slow and Costly ü Months from Project Identification to Contract ü Prepare Full Set of Bid Documents, Advertise, Conduct Pre-bids and Bid Openings, and Formally Award Contracts ü Owner May not be Happy with Low Bidder ü Adversarial Relationship Between Owner and Contractor ü Administrative, Pricing and Scheduling Issues with Change Orders

21 JOC Offers a Cost Effective & Efficient Alternative ü Faster Response: Days or Weeks instead of Months ü Traditional Bid Process Conducted Once, Not Over and Over. ü Well Defined, Goal Oriented Administration ü Owner and Contractor Work in Partnership ü No Negotiation of Change Orders Fixed Price for all Work ü Transparent, Documented Process Fully Auditable ü Performance Based System Rewards High-Quality Contractors

22 The Bid Documents 1. Front End Documents 2. Construction Task Catalog 3. Technical Specifications

23 1. Front End Documents ü Invitation to Bid ü Bid Forms ü Contract ü General Conditions ü Bond Forms ü Other Required Documents

24 2. Construction Task Catalog ü Wide Variety of Construction and Construction Related Tasks ü Unit Prices based on local Labor, Material and Equipment Prices ü Unit Prices include Direct Costs of Labor, Material, and Equipment No Overhead or Profit

25 CSI Number Unit of Measure Installation Price Direct Costs of Labor, Material, and Equipment Description of Task Modifiers for Quantity Discounts, Change in Material, etc. Demolition Price

26 3. Technical Specifications ü Specifies Quality of Materials and Workmanship. ü Corresponds with Tasks in the Construction Task Catalog

27 Prior to bidding, Owner does not: ü Identify or Commit to any Particular Project ü Identify or Commit to any Tasks or Quantities What Owner can commit to: ü Fixed Contract Term one year, two years, etc. ü Fixed Geographic Area ü Estimated Annual Value or Maximum Contract Value $1,000,000, $3,000,000, $5,000,000, etc.

28 Contractors bid Adjustment Factors to be applied to the preset unit prices appearing in the Construction Task Catalog ü Normal Working Hours 7:00am to 3:30pm Monday to Friday. ü Other Than Normal Working Hours 3:30pm to 7:00am, Monday to Friday, and anytime Saturday, Sunday, and Holidays. Award Options, Depending upon Owner Flexibility: ü Contract award based on Lowest, Responsive, Responsible bid, or Best-Value.

29 One Point One Eight Two Seven

30 Contractor Paid for all Work According to the Following Formula: X X = X X = X X = No Negotiation No Arguing about how Many Hours of Labor is Required to Perform a Task, or Double Checking Quotes for Materials

31 1. Joint Scope Meeting Meeting Held at Project Site Discuss Scope of Work and Schedule 2. Owner Prepares Detailed Scope of Work 3. Contractor Develops Price Proposal Selects Tasks and Quantities Develops Construction Schedule Submits Proposed Subcontractors 4. Owner Reviews Proposal, Obtains Required Changes 5. If Acceptable, Owner Issues Job Order to Contractor

32 Standard Details of JOC Contracts: ü Can include Payment and Performance Bonds ü Can be Structured for Prevailing Wage Rates, Non-Prevailing Wage Rates, and Project Labor Agreements ü Differing Site Conditions or Changes Priced from Construction Task Catalog Unit Price x Quantity x Adjustment Factor ü Costs of Permits Reimbursed ü No Guaranteed Volume Performance Based Contract

33 Advice for Construction Owners Managing a JOC Program: ü Get an accurate, locally price unit price book, that specifies your standard products and materials. VCT, hardware, ceiling tiles, lighting fixtures, etc. American Standard Madera, Flush Valve, Floor Mounted, Water Closet vs. Flush Valve Type, Floor Mounted Water Closet If not priced locally or has wide variations in the unit prices, contractors will bid high Adjustment Factor to avoid losses. ü Need a knowledgeable professional to review Price Proposals Verify right tasks, right quantities, so you pay the competitive price ü Use JOC for its intended purpose small to medium sized, routine, straightforward, replacement-in-kind type projects Complicated renovations are okay, $10Million new building is not.

34 JOC is a Proven System with a 30-Year Track Record of Success ü Enables Owners to Complete a Series of Individual Projects with a Single Competitively Bid Contract ü JOC Saves Time ü JOC Saves Money ü 100% Performance Based Contract ü Eliminates the Need to Negotiate Change Orders ü Increases MBE/WBE/SBE Participation ü Increases Options for Owner to Complete More Work One More Tool in the Procurement Toolbox

35 Part 3: The Soluon - Applicaon of JOC

36 MUNICIPAL WATER EFFICIENCY PROGRAM Target: 500 Schools, 3.8 MGD Reducon To Date: 230 Schools Retrofied, 1.9 MGD Achieved since 2011

37 Replacing inefficient toilets and urinals in 500 public schools citywide with high efficiency models. Toilets and urinals in many public schools consume more water than necessary per flush. DEP will be installing toilets that use as little as 1.28 gallons of water per flush. 500 City Schools

38 NYC Environmental Protection Provides money and project management Oversees policy and tracks water savings NYC Department of Education Assists in project management Assures school staff is compliant, helps identify appropriate schools The Gordian Group Day to day construction management Makes sure all work is coordinated with other work happening in DOE schools Plumbing Contactors Chosen by competitive bid process Carries out all plumbing work, from demolition, installation, and waste/recycling.

39 Bayside and Hillcrest High Schools in Queens, each have student populations in excess of 3,000 students and are in operation for most of the day, including afterschool programming. Fixtures in these bathrooms have not been replaced on a large-scale, and are using from gallons of water per flush. Bayside High School Total Retrofits: 179 Estimated water savings: approx. 13,800 GPD Hillcrest High School Total Retrofits: 121 Estimated water savings: approx. 14,900 GPD

40 On 4 0

41 Before High Consumption After High Efficiency

42 Reusing Porcelain from Old Fixtures E Working with contractors to salvage porcelain E Large portion will be used in oyster reef restoration project in Jamaica Bay E Working with our Office of Green Infrastructure to use other porcelain in right of way bioswales

43 How JOC solved many issues Rather than using a line item for dumpsters and hauling, we replaced with a recycling line item (half of a plumbers hour) that covered retrieval, processing (crushing to spec), and delivery to a site storage site. Normally the dumpster line item was subcontracted out to a hauling contractor, recycling and processing was handled by the plumbing contractors (not bid out) so they had financial incentive to do the recycling. The plumbing contractor s agreed to process at their site, which required just a simple registration, and deliver to sites that we asked for.

44 Turning Construction Waste to Productive Ecosystem

45 Porcelain for Green Infrastructure

46 Press on the Oyster project Article on the NY Times highlighted our recycled porcelain component which was picked up by all other news outlets who covered the story.

47 Part 4: Video hps:// 8g&feature=youtu.be

48 Part 5: Addional Applicaons of JOC

49 JOC used by a wide variety of Owners for a wide variety of construction: Universities, K-12 School Systems, Corporate Campuses, State Departments of Transportation, County Governments, Regional JOC Contracts Made Available through Cooperative Purchasing Groups to Local Governments, etc. Can Bid JOC Contracts for Different Trades: General Construction, HVAC, Electric, Plumbing, Haz Mat, Roofing, etc. Separate Regions, or Building Types, or Departments Special Funding Programs ADA Bathroom Upgrades, LED Lighting Upgrades, Campus Wide Sidewalk Replacements, Regional Drainage Improvements Catch Basin and Culvert Replacements, etc. Emergency/Disaster Preparedness Ongoing Routine Construction Projects

50 New York City Housing Authority (NYCHA) ü NYCHA is the largest public housing authority in North America with 177,657 apartments in 328 developments, and 2,547 residential buildings containing 3,315 elevators NYCHA has active JOC contracts for General Construction, HVAC, Plumbing, Electrical, Roofing, Haz Mat, and CCTV work. Typical projects: apartment renovations, roofing projects, exterior masonry upgrades, lighting replacements, ADA bathroom upgrades. In 2013, NYCHA received $100M to upgrade its CCTV/Layered Access system. NYCHA put in place JOC contracts to perform the work buildings in 86 Developments 5,000 Cameras buildings in 53 Developments 2,400 Cameras buildings in 31 Developments 1,150 Cameras 2016 Ongoing

51 New York City Department of Education (NYCDOE) ü NYCDOE is the largest school district in the country serving 1.1 million students in over 1,800 schools, with an annual budget of $25 Billion. NYCDOE has been using JOC since active JOC contracts: General Construction, HVAC, Plumbing, Electrical, Emergency Standby, Electrical Efficiency, HVAC Efficiency, etc. In 2015, NYCDOE completed in JOC more than 1,600 Separate construction projects (4.38/day) valued at $90,000,000. Average project size = $56, Uses JOC for routine construction, plus target funded projects: ü Classroom Task Force ü Breakfast in the Classrooms ü Boiler Conversion Program

52 New Jersey Department of Transportation (NJDOT) Statewide Bridge Repair and Maintenance, and Drainage Program ü Construction Task Catalog contains unit prices for all construction tasks related to bridge repair and maintenance and drainage structure tasks. Federally Funded (FHWA) and State Funded Contracts Faster response to backlog of needed repairs Less Administrative effort than Standby Time and Material Contracts NJDOT study reported 10% 13% in total project cost savings

53 Part 6: Quesons and Answers