FACILITY PROJECT BIDDING OPTIONS OVERVIEW
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1 FACILITY PROJECT BIDDING OPTIONS OVERVIEW A Presentation to the Board of Education Galt Joint Union High School District February 14, 2017
2 January 10, 2017 GHSD Measure E Bidding Options Overview 2 Overview With passage of Measure E the GHSD must determine its best project bidding method Several options exist Each has it pros and cons More than one bidding method can be used Different projects may best be served by different bidding methods For the larger Measure E projects staff is recommending a Lease-Leaseback approach Competitively Bid Lump Sum method may be used for smaller jobs
3 January 10, 2017 GHSD Measure E Bidding Options Overview 3 Types of Contracts a California School District May Enter Into Type of Contract Applies to Legal Authorization Selection Process Fee Determination Project Type Comments Professional Services Architects, Engineers, Construction Project Managers, Land Surveyors, Attorneys, Accountants Government code 4525 & others Qualificationbased; request for qualifications & interviews Negotiated with best qualified All The general public may not be aware that these contracts are never "bid" Competitively Bid Lump Sum Contractors & suppliers Public Contract Code 2000, 3300, 4100 et seq Publicly opened sealed bids; award to "lowest responsible and responsive bidder" Included in bid All This is the "traditional" method for public works since the 1930's and was devised to address corruption Design-Build Design-build "entities", usually comprising a contractor and a design team Education code et seq "Best value" as described in Education Code a et seq Negotiated or included as part of best value Over $2.5 million This became available to school districts in 2002, but has not been widely used. Lease-Leaseback Developers (a.k.a. Leaseleaseback entities) Education Code At District's discretion At District's discretion All Available to school districts since the early 90's but only recently is becoming widely used.
4 January 10, 2017 GHSD Measure E Bidding Options Overview 4 Project Delivery Methods: Pros and Cons Delivery Method Often Used By Contract Types Pros Cons Variations Comments Design-Bid-Build Public sector projects Professional services for Architect & Engineer, lump-sum bid for contractor Traditionally used & therefore noncontroversial to boards and public No input from construction team during design often leads to many costly changes; relationships often adversarial CM-at-Risk; multipleprime Seldom used in private sector (unless bid list is restricted and award to low bidder not required) Design-Build Negotiated GMP (guaranteed maximum price) Public sector projects by state, cities, counties, and school districts; some private sector clients, especially for certain project types (e.g.: parking garages, wastewater treatment facilities) Private sector institutions (not available to public agencies in California except to school districts through Leaseleaseback) Single contract with Design-build entity; may be lump-sum or a form of GMP Professional services for A-E; cost-plus with GMP for contractor Allows owner to deal with only one entity; encourages cost- saving innovations if handled properly Allows contractor involvement very early in project; owner can shed most risk of design errors and omissions; incentive for positive team relationships Owner may lose ability to influence design too early in project; cost saving innovations may compromise quality of project Possibility that contractor could "cook books" to take advantage of costplus aspect (but not very likely) Bridging Incentive savings, Fee at risk, no GMP. Has been used on a few select state, city and county projects, but few schools Generally preferred method in private sector
5 January 10, 2017 GHSD Measure E Bidding Options Overview 5 Lease- Leaseback: The Process Leaseback entity selection process RFQ/RFP Both General Contractor and Mechanical/Electrical/Plumbing Subcontractors Preconstruction Services Contract(s) Allows Contractor Input on Project Prior to Final Pricing Best Method to Identify Potential Value Engineering Items Plans & Specifications Developed and Processed thru DSA Final Approval District enters into Two Leases Site Lease Facilities Lease w/ Construction Provisions
6 January 10, 2017 GHSD Measure E Bidding Options Overview 6 Lease- Leaseback: Features Negotiated Contracts Use of District Selection Criteria Prequalification of contractors - Creation of a Prequalified Contactor Pool Guaranteed Maximum Price Based on Contractor Constructability Review of Plans Flexibility Design and Construction in coordination with District/Architect/Contractor Collaboration between District and Contractor Real World construction contracting
7 January 10, 2017 GHSD Measure E Bidding Options Overview 7 Next Steps Staff working with Counsel to develop Lease-Leaseback documents Request for Qualifications Request for Proposals Contract Documents Return to the Board for review prior to distribution or execution
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