HomeMy Public PortalAbout2510.8 - Business and Financial Services - Procurement & Contracts - Procurement of Construction ServicesOffice of Business and Financial Services
Procurement and Contracts Division Section 2510.8
Policies and Procedures Manual Page 1
2510.8 SUBJECT: PROCUREMENT OF CONSTRUCTION SERVICES
:1 OBJECTIVE:
To establish a uniform policy and procedure for the acquisition of construction
services for the City of Orlando (City), including, but not limited to, streets,
highways, curbing, sidewalks, storm and sanitary sewers, lift stations, treatment
plants, drainage canals, fire stations, police facilities, recreation centers, parks,
playgrounds and playground facilities, that are consistent with the City’s
Procurement Code and applicable state and federal laws.
:2 AUTHORITY:
This procedure amended by City Council on January 28, 2013, Item A-3.
:3 DIRECTION:
The Chief Financial Officer, as an appointed official, serves at the pleasure of, and
receives direction from the Mayor.
:4 FUNCTIONS:
A. Introduction
City government, as an institution, has multiple partners including
citizens, taxpayers, businesses, visitors, employees, and other
governments. As a major institutional, economic, and service force in the
region, it is important that the City strengthen relationships with its
partners by adopting a clear and comprehensive set of policies and
procedures.
Furthermore the integrity of the City of Orlando is of utmost importance,
and adopting a set of policies is a key element to maintain this integrity.
The purpose of this policy is to provide policy direction for the selection
of contractors to perform construction projects for the City.
B. Construction Delivery Methods
Except as otherwise provided in City Code or by applicable policy and
procedure, the procurement of construction services that exceed
$100,000.00 will require a formal competitive solicitation process such
as the Invitation for Bid, Request for Proposal, or Request for
Qualification.
Construction delivery methods may include, but are not limited to:
1. Design-Bid-Build Format
The City may use a Design-Bid-Build format where the City will
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develop or contract with a consultant to develop the technical
specifications and drawings, after which the City will solicit
sealed construction bids in accordance with the City procurement
process.
2. Rapid Response
The City will execute Rapid Response Contracts to be utilized
for minor or emergency infrastructure projects. On a project-by-
project basis, the Public Works Director or designee will issue
rapid response task orders as allowed under the terms of the
contract or as authorized by City Council. All rapid response
contractors qualified to perform a particular category of work
shall be provided the opportunity to bid on minor contracts.
3. Design-Build Format
The City may deliver a construction project using a Design-
Build format as defined in Chapter 287.055, Florida Statutes, as
may be amended from time to time. This procurement method
involves selecting a Design-Builder, responsible for both the
design and construction of the project as a single entity.
4. Construction Manager at Risk
The City may deliver a construction project using a Construction
Manager at Risk (CMR) format. The selection of the successful
contractor under this process is based upon procedures allowed
under Florida Statues 255.20 and 255.103, as may be amended
from time to time. The CMR directs and coordinates the entire
project including bidding out all subcontract requirements.
C. Implementation of Capital Improvement and Infrastructure Development
(CIID) Construction Projects
When applicable, the following provisions shall be included in procurement
for construction services that are managed by CIID.
1. Responsible Contractor’s Policy
The following policy language will be added, in the appropriate
sections, to all solicitations for construction contracts with an
estimated value of at least $100,000. This provision will not
apply to consulting or professional service contracts.
Construction contracts that are estimated to exceed $100,000
shall also require the Contractor to post a copy of the City’s
responsible contractor policies at designated location(s) at the
job site.
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The contractor, including its subcontractors at all tiers, when
paying the workers on this project, shall pay such workers an
hourly wage, based on classification, for the Orlando region
established by the Davis-Bacon Act (40 U.S.C. 276a-7) as
supplemented by the U.S. Department of Labor regulations (29
CFR part 5) (hereinafter “hourly wage”). Additionally, the
contractor shall provide said workers with health benefits. The
contractor may satisfy this health benefits requirement by
providing workers on the project either, 1) health benefits
through a bona fide program, or 2) by increasing the hourly
wage by 20%. Evidence of the existence of a bona fide health
benefits program, satisfactory to the City, must be submitted to
the Public Works Department. Payment of the appropriate
wages must be documented in the contractor’s progress payment
applications through the submission of certified payrolls from
the contractor for the duration of the contract. Moreover, the
contractor shall require that this provision be included in
contracts with all subcontractors at all tiers, and will be held
responsible for compliance by any subcontractor or lower tier
subcontractor. Notwithstanding the foregoing, the contractor
acknowledges and agrees that no hourly wage paid on this
project will be less than the living wage referenced in the
contract.
2. Apprenticeship Program
The following language shall be added, in the appropriate
section, to solicitations for construction contracts in which the
primary purpose of such contract is the construction of a
building, such as a parking garage, community center, or
wastewater treatment plant, and the estimated construction cost
exceeds $500,000. This provision does not apply to consulting or
professional service contracts.
The contractor shall comply with the City of Orlando’s
Apprenticeship Program (“Program”) requirements. The goal of
this Program is to have 10% of the contractor’s and first and
second tier subcontractors’ work hours sourced from registered
State of Florida Pre-Apprenticeship/Apprenticeship Programs, if
available. The General Conditions of the Contract Documents
provide a listing of the trade positions recognized by the City of
Orlando as qualified to meet the intent of this Program and will
be credited to meeting the Program goal. The bidder should, at
the time of bid opening, submit the name(s) of the registered
State of Florida Pre-Apprenticeship/Apprenticeship Program
provider(s) that it will utilize.
3. Prohibition on Skilled Workers From Temporary Staffing
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For contracts for which the primary purpose is the construction
of a building, such as a parking garage, community center or
wastewater treatment plant, and the estimated construction cost
exceeds $500,000, the construction contract shall prohibit the
contactor and subcontractors at all tiers from using skilled
workers from temporary staffing firms to provide labor on the
project.
4. Independent Contractors
Construction contracts that are estimated to exceed $100,000
shall require the contractor and subcontractors at all tiers to
classify all of their workers as employees or independent
contractors in accordance with the requirements of federal law
and regulations.
Further, workers who are employees as defined by federal laws
and regulations shall not be classified as independent
contractors. Contractors and subcontractors at all tiers shall be
required to provide written notice of employment status to their
workers on the project classified as independent contractors
within seven (7) days after award of contract (or within seven (7)
days of hiring if hired subsequent to contract award).
Documentation demonstrating compliance with this condition for
each applicable worker shall be submitted with the first pay
request, or for those hired after submittal of the first pay request,
with the first pay request submitted subsequent to the worker’s
hiring.
5. E-Verify
Construction contracts that are estimated to exceed $100,000
shall require the contractor and subcontractors at all tiers to
utilize the U.S. Department of Homeland Security’s E-Verify
system, in accordance with the terms governing use of the
system, to verify the employment eligibility of all new
employees hired during the term of the contract. Documentation
of E-Verify confirmation shall be submitted with the first pay
request, or for those hired after submittal of the first pay request,
with the first pay request submitted subsequent to the worker’s
hiring.
D. Amendments and Change Orders
The Public Works Director or designee, by delegation from the CPO, shall
negotiate contract amendments and change orders on behalf of the City for
construction contracts in accordance with City Code.
For smaller construction projects where ten percent (10%) of the original
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contract amount is less than the fixed dollar amendment and change order
authority granted to the Chief Procurement Officer (CPO) for non-
construction contracts pursuant to the City Code, the CPO shall have the
authority to execute amendments and change orders up to the limits
permissible for non-construction contracts.
E. Grant Funded Projects
For projects that are funded in whole or in part through the use of grant
funds, the using agency shall comply with the Grants Policy and Procedure
(2320.1). In the event a procurement method other than an Invitation for
Bid or Request for Proposal is necessary, the using agency shall obtain
prior approval from the grantor to utilize that method.
Grant funded projects that exceed $100,000 should be procured through a
formal competitive procurement process. For grant funded projects that are
$150,000 or less, in addition to any formal solicitation procedure used as set
forth in City Policy and Procedure, quotes may be obtained in compliance
with the federal simplified acquisition threshold.
1. Records
The project file maintained by the Procurement and Contracts
Division shall include the solicitation and supporting documents
including, but not limited to:
a. the specifications and scope of work;
b. the notification of solicitation (legal advertisements);
c. evaluation criteria (if applicable), meeting minutes (if
applicable), and addenda (if any);
d. Council Agenda (if required);
e. contract and/or task orders;
f. a copy of any required certificates of insurance;
g. the rationale for the method of procurement;
h. the selection of contract type;
i. the basis for contractor selection or rejection;
j. the basis for the contract price and payment method; and
k. other relevant documents supporting the analysis and
negotiation of the contract.
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2. Ethics
In procuring and administering construction services funded by
state or federal grants, Procurement and the using agency shall
comply with the City’s ethics policies, including but not limited to
the City’s policy and procedure on grants (Policy and Procedure
2320.1) and the conflict of interest provisions contained therein. In
addition, with respect to grants funded by the United States
Department of Transportation, directly or through the State of
Florida, the City shall comply with the requirements of 23 CFR §
1.33 regarding conflicts of interest, if applicable to such grants.
F. Construction Advertisement Requirements
In the procurement of construction services, the following advertising
requirements shall be followed in accordance with Florida Statutes Section
255.0525, as may be amended from time to time.
1. The solicitation of competitive bids or proposals for projects
estimated to cost more than $200,000 shall be publicly advertised
at least once in a newspaper of general circulation in the county
where the project is located at least 21 days prior to the established
bid opening and at least 5 days prior to any scheduled pre-bid
conference.
2. The solicitation of competitive bids or proposals for projects
estimated to cost more than $500,000 shall be publicly advertised
at least once in a newspaper of general circulation in the county
where the project is located at least 30 days prior to the established
bid opening and at least 5 days prior to any scheduled pre-bid
conference.
3. Grant funded projects will also be advertised in accordance with
the grant requirements.
G. Contract Negotiations and Contract Extensions
1. Following City Council approval, negotiations, if applicable, will
be conducted by the Public Works Director or designee, by
delegation from the CPO.
2. The initial contract shall be executed by the CPO or designee after
the contractor has executed the contract and submitted all required
documents, including bonds.
H. Roles During Project Execution
1. The Procurement and Contracts Division shall have the following
responsibilities:
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a. Maintaining the Procurement contract file documents
and original contracts;
b. Monitoring insurance and bond requirements;
c. Managing of contract modification execution;
d. Assembling contractor performance/evaluation reports;
and
e. Facilitating contractor/City dispute resolution.
2. The using agency shall have the following responsibilities:
a. Management of the project by the using agency’s project
manager responsible for the construction project or
consultants working on behalf of the using agency
during the construction period;
b. Submitting contract modification and change order
requests with backup documents to the CPO or designee
for execution;
c. Verifying and certifying that payment applications
(invoices) are correct and consistent with the contract
pricing, and submitting those documents for payment in
a timely manner;
d. Confirming that the Contractor is performing in
accordance with contract provisions;
e. Ensuring that all work is inspected according to City
policy during the construction period; and
f. Performing project closeout activities upon the
completion of work, and ensuring all disputes have been
resolved and that all inspections have been performed.
:5 FORMS:
None.
:6 COMMITTEE RESPONSIBILITIES:
None.
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:7 REFERENCE:
Florida Statutes Chapters 287.055; 255.20; 255.103; 255.0525 and City Code
Chapter 7; this policy adopted by City Council December 19, 2012, Item A-3;
amended by City Council January 28, 2013, Item A-3. (Superseding former
policy section #133.5)
:8 EFFECTIVE DATE:
This procedure is amended effective January 13, 2013.