Maintenance, Repair, and Operations JOC Program
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1 Maintenance, Repair, and Operations JOC Program Pre-Proposal Meeting CSP # Building Automation Systems CSP # Glass and Glazing Service CSP # HVAC / Mechanical CSP # Plumbing December 13, 2016
2 Agenda Conroe ISD MRO JOC Program Gordian MRO Overview MRO Contract Documents MRO Process Solicitation Details Understanding the Maintenance Procurement Catalog Calculating the Proposals Proposal Considerations & Review Contractor Adjustment Factors Risk of Low Adjustment Factors Questions
3 Conroe Gordian MRO History Typical Uses of MRO include: Facility Repair Straightforward Work Items Playground Maintenance Paving Maintenance HVAC Maintenance
4 Gordian MRO is an Umbrella Contract
5 MRO Overview Contractor Benefits Why MRO Works for Contractors Good work is rewarded with more work Profit is a function of volume Volume is driven by performance MRO provides a steady flow of work Do not have to chase the next project Long-term relationship with Conroe ISD Good work is rewarded with more work Develop partnership with Conroe ISD Reduced Risk Payment for every element of work performed Ability to provide input during scope development
6 MRO Overview Why MRO Works for Conroe ISD A Fixed Priced, Fast Track Procurement Process Work Orders are Lump Sum The Ability to Accomplish numerous Individual Projects with a Single Competitively Bid Contract On-Call Contractors Ready to Perform multiple Projects at Different Locations for Competitively Bid Prices Contractor Has A Continuing Financial Incentive To Provide Responsive Services Accurate Proposals Quality Work on Time Timely Close Out Future Purchase Orders Tied to Contractor Performance No Obligation To Award Specific Projects Conroe ISD can Use All Other Methods For Accomplishing Projects
7 How is Gordian MRO Bid? Bid Documents: Conroe ISD Bid Documents 4 individual sets MRO Maintenance Procurement Catalog
8 MRO Contract Documents Front End Documents Notice to Proposers Instructions To Proposers Bid Forms General Conditions Attachments
9 MRO Contract Documents Maintenance Procurement Catalog Catalog of Pre-Priced Construction Tasks Organized by Construction Specifications Institute (CSI) Based on Local Labor, Material & Equipment Costs The tasks represent the Scope of Work for the contract
10 Gordian MRO Contract Documents Maintenance Procurement Catalog Maintenance and repair specific Actual, local costs
11 MRO Process - How is MRO Bid & Awarded? Contractor bids Adjustment Factors: Normal Working Hours (Applies to all tasks in the Catalog) Other Than Normal Work Hours (Applies to all tasks in the Catalog) Non Pre-Priced Conroe ISD MRO Contracts are Awarded Based on Best Value Proposal Form Description Points A Award Criteria Figure based on weighted Adjustment Factors 30 B Experience and Reputation 20 C Safety Record 10 D Financial Capability 10 E Personnel 20 F Prior Experience with Conroe ISD 10 Total Points 100
12 MRO Process How is Work Done? Owner contacts shall Owner Owner approves
13 Solicitation Details At time of bidding, Conroe ISD Cannot Identify or Commit to any Specific Project or Location Identify or Commit to any Specific MRO Tasks or Quantities Base Term with Option Periods No Minimum Contract Value No Maximum Contract Value Contractor Performance Drives Volume of Work
14 Solicitation Details Contracts may be awarded for the Trades listed in this table. CISD may award any number of contracts per Trade or elected not to award Contract(s). A proposer may submit individual Proposals for more than one Trade. A proposer shall not submit more than one Proposal for the same Trade. CSP# / Trade CSP # MRO JOC Program Building Automation Systems CSP # MRO JOC Program Glass and Glazing CSP # MRO JOC Program HVAC / Mechanical CSP # MRO JOC Program Plumbing Contractor License Required Minimum Contract Value Maximum Contract Duration (Sum of Terms) No None 5 years No None 5 years Yes None 5 years No None 5 years
15 Solicitation Details Differing Site Conditions or Changes in Scope Priced from Maintenance Procurement Catalog Supplemental Work Order No Negotiated Change Orders Filings and Permits Fees paid for any and all Permits reimbursed 100% - No Markup
16 Solicitation Details Internet Based Software Provided with Contract egordian Software Automates the Proposal Process
17 Understanding the MRO Maintenance Procurement Catalog Contractor must review and understand Using the MRO Maintenance Procurement Catalog Rules of the game Make sure you get paid for all appropriate tasks Pages 00 1 to 00-8 of the MRO Maintenance Procurement Catalog
18 Understanding the Maintenance Procurement Catalog Include All Appropriate Tasks: Sample only Compare these prices
19 Non Pre-priced Tasks Contractor must have permission from CISD to use a Non Pre-priced Task prior to submission Three (3) Quotes on vendors or subcontractors letterhead Justification req d for less than 3 quotes Contractor is paid the amount in the following formula: For Non Pre-priced Tasks Performed with Contractor's Own Forces: A = The hourly rate for each trade classification not in the MRO Maintenance Procurement Catalog multiplied by the quantity; B = The rate for each piece of Equipment not in the MRO Maintenance Procurement Catalog multiplied by the quantity; C = Lowest of three independent quotes for all materials. Total for a Non Pre-priced Tasks performed with Contractor s Own Forces = (A+B+C) x Non Pre-Priced Task Adjustment Factor. For Non Pre-priced Tasks Performed by Subcontractors: If the Non Pre-priced Task is to be subcontracted, the Contractor must submit three independent quotes for the work. D = Lowest of three Subcontractor Quotes Total Cost for Non Pre-priced Tasks performed by Subcontractors = D x Non Pre-Priced Task Adjustment Factor.
20 Methods to Calculate the Adjustment Factors Recommended Method Use Historical Project Data Select a Completed Project You Know Scope and Direct Costs Price Project From Maintenance Procurement Catalog Add on Overhead and Profit Calculate the Adjustment Factor Alternative Method Create a Representative Project Create a Scope of Work Get Sub Quotes or Estimate Cost Price Project From Maintenance Procurement Catalog Add on Overhead and Profit Calculate the Adjustment Factor
21 Sample Project 1 Sidewalk Detailed Scope of Work Location: Martha Johnson Library Brief Scope: Replace concrete sidewalk at the rear exit Detailed Scope: Demo existing concrete and base as marked. Replace with 4 Cast In Place Concrete over 4 Crushed Aggregate Base. Broom finish. Normal Working Hours Apply
22 Sample Project 1 - Sidewalk Sample Project 1 Price Proposal Page 1
23 Sample Project 1 - Sidewalk Sample Project 1 Price Proposal Page 2
24 Sample Project 1 - Catalog Price vs. Quotes Direct Cost of Work from Maintenance Procurement Catalog Direct Cost of Work from Quotes or Estimates Demo Existing Sidewalk & Base $ Hauling & Dump Fee $ Install new Concrete Sidewalk $ 2, Demo Existing Sidewalk & Base $ Hauling & Dump Fee $ Install new Concrete Sidewalk $ 2, Total: $ 3, Total: $ 2,900.00
25 Sample Project 1 Putting it all Together A. Direct Cost of Work from Quotes $ 2, B. Overhead 10%* $ C. Subtotal (Cost & O/H) $ 3, D. Profit 10%* $ E. Subtotal (Cost & O/H & Profit) $ 3, F. Price From Maintenance Procurement Catalog $ 3, Adjustment Factor (= E / F) = *Sample Only. Contractor to determine O/H & Profit. Prepare this calculation for more than one sample project.
26 Filling Out the Proposal Form Sample only
27 Sample Project 2 Plumbing Detailed Scope of Work Location: WBN Science Center Brief Scope: Investigate and Repair Sewer Line Detailed Scope: Remove and reinstall one wall hung toilet to use this as cleanout port for auger. Clean two 4 sewer lines with sewer auger machine. Camera inspect two separate 4 sewer lines. Women s Restroom: Saw-cut into existing block/tile walls and install new 4 galvanized cast iron cleanout. Install 36 x36 fire rated access panel with cam latch at cleanout. Men s Restroom: Demo one existing 4 cleanout and install new 4 galvanized cast iron cleanout. Install 36 x36 fire rated access panels with cam latch at cleanout. Normal Working Hours Apply
28 Sample Project 2 - Plumbing Sample Project 2 Price Proposal Page 1
29 Sample Project 2 - Plumbing Sample Project 2 Price Proposal Page2
30 Sample Project 2 - Catalog Price vs. Quotes Direct Cost of Work from Maintenance Procurement Catalog Site Work $ Openings $ Plumbing $ 1, Utilities $ 2, Direct Cost of Work from Quotes or Estimates Site Work $ Openings $ Plumbing $ 1, Utilities $ 2, Total: $ 5, Total: $ 5,225.00
31 Sample Project 2 Putting it all Together A. Direct Cost of Work from Quotes $ 5, B. Overhead 10%* $ C. Subtotal (Cost & O/H) $ 5, D. Profit 10%* $ E. Subtotal (Cost & O/H & Profit) $ 6, F. Price From Maintenance Procurement Catalog $ 5, Adjustment Factor (= E / F) = *Sample Only. Contractor to determine O/H & Profit. Prepare this calculation for more than one sample project.
32 Filling Out the Proposal Form for Sample Project Sample only
33 Bid Considerations Contractors Should Expect To: Prepare incidental drawings or sketches for some projects Justify Quantity Calculations Explain Detail of Work Prepare proposals for some projects that may be canceled Margins on Maintenance Procurement Catalog tasks vary Some projects are more profitable than others Maintain a fully functioning office Maintain a fully functioning staff Hold required licenses, if required
34 Contractor Adjustment Factors Importance of Adjustment Factors Determines lowest proposed price AND Used to price individual Work Orders Price Proposal total becomes the lump sum Work Order Price Total Work Order Price
35 Contractor Adjustment Factor Annual Price Adjustment Applied annually on the Contract Award s Anniversary Date Based on CCI for the average of the twenty cities published by Engineering News Record Calculation: Average CCI for Current Year = The % Increase or Decrease in Average CCI for Base Year Construction Costs Percentage x Original Adjustment Factors = New Adjustment Factors for Next Year Normal Working Hours Other Than Normal Working Hours NPP Adjustment Factors are Fixed for the Duration of the Contract
36 Risks of Low Adjustment Factors Leads to Arguments in Proposal Review Unsupportable Tasks Exaggerated Quantities Leads to Delays in Work Order Development Takes Longer to Review Proposals Creates an Adversarial Relationship Reduced Volume of Work Will Shorten Contract Lost Profitability No Second Chance to Improve Margin
37 Review / Key Points Evaluate Maintenance Procurement Catalog Analyze Unit Prices Know the General Guidelines for Using the Catalog Contractor Performance Drives Volume Responsive Service Accurate Proposals Safe and Clean Project Sites High Quality Construction On-Time Completion On-Time Close Out
38 Proposals Sealed bids due: Tuesday January 17, 2017 at 2:00 PM Conroe ISD PURCHASING OFFICE 2 nd Floor, Building A 3205 W. Davis Conroe, TX RFP # Maintenance, Repair, and Operations JOC Program, (insert trade) ONE (1) fully executed paper bid document, ONE duplicate copy and ONE (1) electronic version on a USB (flash/thumb) drive or CD
39 proposals Proposals shall include: Cover page with the following: Contractor s name, address, phone number, Name of Primary Contact, Contract Trade Certification Sheet of this Instructions to Proposers Form A - Adjustment Factor Proposal Form Form B - Experience and Reputation Form C - Safety Record Form D - Financial Capabilities Form E - Personnel Form F - Prior Experience with Conroe ISD Form Certificate of Interested Parties A copy of current insurance coverage as identified in the Notice to Proposers Debarment Form Edgar Vendor Certification Form Felony Conviction Notification Non Collusion Statement A duplicate set of all bid documents An electronic copy of all bid documents on CD or USB flash drive
40 Questions? Make Sure you Signed the Pre-bid Sign-In Sheet Proposers can view and obtain Contract Documents by accessing the Conroe ISD website at: All questions shall be submitted in writing (No phone calls) by Friday December 16 th, 2016 by 12pm CST: Rick Reeves Conroe Independent School District Purchasing Department 3205 W. Davis St. Conroe, TX
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