Construction Contract Performance & Documentation Requirements Update
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1 ACTIVITY NAME Construction Contract Performance & Documentation Requirements Update Construction Contract Cost & Schedule Adherence Construction Management System (CMS) efiles Revised Payments for Materials Clause DD Forms 1354 eomsi Glenn H. Higuchi, P.E. Construction Division NAVFAC Pacific Capital Improvements 1 December 2010
2 Construction Contract Cost & Schedule Adherence Performance Improvement Construction delivery on-time & within budget No more than 5% cost & 10% schedule growth Improve pre-award packages to reduce RFIs, modifications & scope creep Maximized use of performance-based D-B contracts Betterments & enhancements in RFP s Enhanced Design QC/QA process Improved constructibility review during RFP development Use of proper contract durations Reduction of customer requested modifications Cost-loaded Schedules, Schedule Payments & Schedule Variance Control (SVC) all contracts > $750,000 2
3 Construction Contract Cost & Schedule Adherence Performance Improvement : SVC SCHEDULE PERFORMANCE INDEX (SPI) SPI = AE/PE PLANNED EARNINGS (PE) BASED ON BASELINE EARLY START ACTUAL EARNINGS (AE) FROM EARNED VALUE REPORT INVOICE DATE 2 mos. behind WIP projection EARLY WARNING INDICATORS: AHEAD OF SCHEDULE AE > PE and SPI >1 ON SCHEDULE PE = AE and SPI = 1 BEHIND SCHEDULE PE > AE and SPI < 1 MONITOR SCHEDULE VARIANCE TO MEASURE IMPROVEMENT 3
4 Performance Incentives for Construction Contractors 4 Construction Contract Cost & Schedule Adherence Performance Improvement Help us achieve on-time & within budget delivery! Cost growth < 5% of original contract amount Schedule growth <10% to original contract duration Favorable CCASS performance evaluations for good safety, cost & schedule performance Performance awards for safety, cost & schedule achievements CCASS Performance Evaluations Important for Source Selection past performance evaluation Weighting for safety, cost & schedule performance desirable but Encourage raters to recognize safety, cost & schedule performance Past Performance Questionnaires (PPQs) if no CCASS Performance Evaluations Current CCASS information: NAVFAC PERFORMANCE EVALUATION SYSTEM Web-Based ACASS/CCASS summary handout
5 Construction Contract Cost & Schedule Adherence Performance Improvement Performance Incentives for Construction Contractors Performance Awards Encouraging awards when performance meets or exceeds safety, cost & schedule adherence goals! Even if all other Performance Evaluation elements are only satisfactory Four levels of performance recognition: FEAD/ROICC Letter of Appreciation NAVFAC Hawaii, NAVFAC Marianas & NAVFAC Far East Commanders Certificate of Appreciation NAVFAC Pacific Commander s Certificate of Appreciation NAVFAC Commander s Certificate of Commendation 5
6 Construction Contract Cost & Schedule Adherence Performance Improvement Performance Incentives for Construction Contractors Construction Safety Priority for all Separate Safety Source Selection Evaluation Factor EMR (Experience Modification Rate) OSHA DART (Days Away from Work, Restricted Duty, or Job Transfer) Rate Technical Approach for Safety Subcontractor minimum safety performance safety criteria Pilot only at NAVFAC SouthEast NOT part of Source Selection Evaluation Factor(s) Specified minimums. No subcontractor with: Effective EMR > 1.10 OSHA DART Rate > 3.0 Certificates of EMR ratings & OSHA DART rates for all subcontractors Maintained by Contractor s SSHO 6
7 Construction Management System (CMS) efiles WebCM Shutdown November 30, 2008 Local procedures for electronic document submission New NAVFAC Electronic Document Management System (EDMS) - CMS efiles in development Will reside on NAVFAC servers External Certification Authority (ECA) Program PKI Certificate will be required (like ACASS/CCASS) Access CMS efiles via NAVFAC Single Sign-on (SSO) account Uses Adobe LiveCycle Implementation delayed to sometime in 2011 due to LiveCycle problems On-line training manuals have been developed 7
8 8 Construction Management System (CMS) efiles NAVFAC Single Sign-on (SSO) Site
9 Construction Management System (CMS) efiles efiles Functionality An Electronic Filing Cabinet Defined folder structure No workflow (linked steps performed sequentially or in parallel) Each contract will have a permission matrix, similar to WebCM Government will control user access Permissions limit what folders user can see and access Fillable Adobe pdf forms already in use Production Report Quality Control Report Initial Phase Checklist Preparatory Phase Checklist Transmittal/Review/Approval Form Request for Information Rework list Test Log 9
10 Construction Management System (CMS) efiles Forms Forms are expandable 10
11 Construction Management System (CMS) efiles External Certification Authority (ECA) Certificate ECA Certificates are purchased directly from the vendors Approved vendors: Operational Research Consultants, Inc. (ORC) Phone: Verisign, Inc. Phone: IdenTrust, Inc. ieca.html Phone:
12 Revised Payments for Materials Clause Previous Price and Payment Procedures Specifications 1.7 PAYMENTS TO THE CONTRACTOR Payments will be made on submission of itemized requests by the Contractor which comply with the requirements of this section, and will be subject to reduction for overpayments or increase for underpayments made on previous payments to the Contractor. Basis for Contracting Officer's consideration to allow progress payment for material delivered on the site (but not installed) and for completed preparatory work, as authorized under FAR (b), shall be (1) major high cost items and (2) long lead special order items. Materials that will not be paid for prior to installation include, but are not limited to, bulk quantities such as nails, fasteners, conduits, gypsum board, etc. In the request for progress payment, such items shall be specifically identified in the Contractor's estimates of work submitted for the Contracting Officer's approval in accordance with paragraph entitled "Schedule of Prices" above. At the time of invoicing, the amount billed shall be supported by documents establishing its value. 12
13 Revised Payments for Materials Clause Revised NAVFAC Price and Payment Procedures Specifications UFGS (D-B-B) & UFGS (D-B) Included in NAVFAC Pacific contract specifications Pending NAVFAC UFGS release (Dec 2010 & Feb 2011) Progress payments may be made for materials that are in transit, stored off construction sites, or delivered on the site Conditions: In transit or stored in Hawaii, Guam, Puerto Rico or Continental U.S. (Other locations by written approval) Materials adequately insured and protected from theft & exposure Written consent of surety Separately identified in pay request estimate Supported by documents establishing value and title FAR (b) Payments Under Fixed Price Construction Contracts 13
14 Revised Payments for Materials Clause Revised NAVFAC Price and Payment Procedures Specifications Progress payments for offsite, onsite and in transit materials: Major high cost, long lead, special order or specialty items Not susceptible to deterioration or physical damage in storage or in transit to the construction site Examples: Structural steel, non-magnetic steel, non-magnetic aggregate, equipment, machinery, large pipe and fittings, precast/prestressed concrete products, plastic lumber (e.g., fender piles/curbs), high-voltage electrical cables Not acceptable for progress payment Consumable materials such as: Nails, fasteners, conduits, gypsum board, glass, insulation, wall coverings 14
15 DD Forms 1354 Draft DD Form 1354 Completed by 100% Design Review Design-Bid-Build: Developed by NAVFAC Design Architect/Engineer Design-Build: Developed by Construction Contractor Interim DD Form 1354 Construction Contractor Prepares Completed 30 days prior to Beneficial Occupancy Date (BOD) No BOD taken without Interim DD Form 1354 for new facilities Final DD Form 1354 Construction Contractor updates Interim for Final DD Form 1354 When all costs are finalized (Financial Closeout) 15
16 16 DD Forms 1354 Sample
17 eomsi Electronic Operations & Maintenance Support Information New draft eomsi NAVFAC specification section Electronic operation & maintenance support information (eomsi) Detailed as-built information for facility operation, maintenance & repair in Data & Document files: Preformatted Excel spreadsheet workbook Data files (see handout for draft excerpted sample) Equipment Data Non-Equipment Data/Component Inventory Management Unit (CIMU) Operation & Maintenance Manual (PDF, CADD & MS Word Doc files) Facility, Primary System & Product Information Electronic OMSI manuals (but bound hardcopies may still be specified) eomsi Submittals: Preliminary at 50% construction completion 100% Prefinal at 45 days prior to BOD Final at 30 days after BOD 17
18 Construction Contract Performance & Documentation Requirements Update Construction Contract Cost & Schedule Adherence Performance Improvement Pre-award contract package improvements Enhanced Construction Schedule Management with SVC Incentives for good safety, cost & schedule performance Favorable CCASS Performance Evaluations Performance Awards Construction Management System (CMS) efiles Revised Payments for Materials Clause DD Forms 1354 eomsi Questions? 18
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