Building Greatly: Construction & Properties’ Segment DCS/Construction and Properties Division 405/ Mike Jones Acting State Construction Administrator Department of Central Services Construction and Properties Division

DCS/Construction and Properties Division “The American, by nature, is optimistic. He is experimental, an inventor and a builder who builds best when called upon to build greatly.” -- John F. Kennedy

DCS/Construction and Properties Division  Procuring Construction Services  Statutes and Rules  Duties of the Division (CAP)  Doing Business with CAP

DCS/Construction and Properties Division DCS/Construction & Properties Division:  Central Procurement Authority for State Agencies  Procurement and Contracts governed by Title 61 and CAP Rules  Follows the same principles of Public Purchasing  The Solicitation  The Contract Award  Contract Management  The steps to get there are a little different, the price triggers are different, but the overall process is similar  Title 61 is very complex – we will focus on procurement basics

DCS/Construction and Properties Division Construction and Properties Division Basics  CAP = Construction and Properties  Parallels Central Purchasing Division  SCA = State Construction Administrator  Parallels State Purchasing Director  Public Building Construction and Planning Act  Parallels the Oklahoma Central Purchasing Act  Incorporates the Public Competitive Bidding Act  Is a separate procurement authority  Consultant or Contractor = Vendor  Division = Construction and Properties Division  Agency or Using Agency = CAP’s Customer

DCS/Construction and Properties Division Common Procurement Actions through CAP  1. Hire a Consultant to plan or design a construction project  Architects, Engineers, others  Several Methods to get this done  Selection process defined by statutes and rules  Statutory On-Call Consultant program for small projects  Purchase from one of CAP’s IDIQ Contracts (Indefinite Delivery Indefinite Quantity), similar to a statewide contract

DCS/Construction and Properties Division Common Procurement Actions through CAP:  2. Hire a construction company to build, renovate, modify or perform maintenance services related to a building, building equipment or property related to the building  Again, there are several allowable purchasing solutions  Select Contractor based on Low Bid: Public Competitive Bidding Act of 1974  Select a Construction Manager – Similar to Consultant Selection Process  Purchase from a CAP Line-Item (Statewide) Contract  Select an integrated Design-Build firm for turnkey project delivery (RFQ/RFP Process)

DCS/Construction and Properties Division Title 61: Public Buildings and Public Works  Public Competitive Bidding Act of 1974  Applies to all public agencies/political subdivisions  Public Building Construction & Planning Act  Applies to State Agencies, incorporates PCBA of 1974  State Consultants (Construction Managers and Consultants)  Applies to State Agencies  Fair Pay for Construction Act  Applies to all public agencies & political subdivisions Oklahoma Administrative Code  Title 580, Section 20: CAP Rules

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974  Title 61, Sections  Public Construction Contract  Applies to public improvements, including constructing a building, making repairs or performing maintenance  Cost limits that trigger procurement requirements  Contracts > $50,000: must be publicly advertised, sealed bids  Contracts < $50,000: receipt of written bids (3 quotes)  Contracts < $5,000: award to any suitable contractor  Written contract, insurance, bonds (if > $50,000) and Notice to Proceed required before any work is performed  Sole-Source Acquisitions – contact CAP

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974  Public Construction Contract Projects > $50,000  CAP is awarding public agency  Public, competitive bidding required  CAP advertises and accepts bids  Award to Lowest responsible bidder  Bonds required:  Bid Bond  Performance Bond  Defect Bond  Insurance required including Worker’s Compensation  No work until written contract and Notice to Proceed issued by the Division

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974 Projects > $50,000  Bid Notices  Published in County where work is to occur  At least 20 days before bid opening  Notice sent to Trade or Construction Publications  Bid documents available for inspection

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974 Projects > $50,000  Bid Openings  Sealed Bids - due by date and time specified  Late bids not to be considered  Open to the Public  Bids read aloud

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974 Projects > $50,000  Bid Award  Award Contract within 30 days  Agency may request 15 day extension  Up to 90 day extension if Federal funds involved  Up to 120 days permitted under special circumstances if low bidders agrees in writing  Some provision to negotiate with low bidder  If no bids are received, SCA may negotiate and award a contract < $50,000  If all bids exceed available funding – must meet specific criteria and requires approval of DCS Director

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974  Projects < $50,000  Agency may solicit 3 bids by mail, fax,  If unable to obtain a bid, a letterhead “no bid” will suffice  Provide clear bid request for ‘apples to apples” comparison  Obtain statutory affidavit and insurance certificates  Submit written bids with Requisition to CAP for Contract Award  CAP Form M800: Standard Procedures for Obtaining Bids – Projects Under the Statutory Amount

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974 Projects < $5,000  Allowable for minor repair and maintenance  Award to any suitable vendor; bidding not required  State Agencies may award directly (not required to send to CAP for award).  Insurance and written contract required  Payment by P-Card is acceptable  CAP Form M601: Contract for Minor Construction  Agency awards, can pay with PO or P-Card

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974 Change Order Limits – Apply to all Projects  Contracts < $1,000,000 limited to 15% increase over original contract  Contracts > $1,000,000 limited to $150,000 or 10% increase over original contract, which ever is greater.  Law is silent on deduct change orders

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974 Title 61, Section 130, Emergencies  Suspends requirement for bidding; remainder of Act – contracts, insurance, bonds - apply  Sudden unforeseen occurrence, threat to health or safety of employees or public  Governing Board/Chief Administrative Officer must declare  Report to State Construction Administrator within 10 days of declaration  No dollar limit if Board declares, or head of agency without a board

DCS/Construction and Properties Division Public Competitive Bidding Act of 1974 Title 61, Section 130, Emergencies  A Chief Administrative Officer may declare up to $35,000 if authorized by Board to do so  For State Agencies: CAP awards emergency contracts  Call CAP to apprise of emergency situation, follow with declaration  Send requisition for contract award to CAP  State Construction Administrator submits annual report on Emergency Declarations to Governor & Legislature

DCS/Construction and Properties Division Public Building Construction and Planning Act  Title 61, Section 202  Creates the Construction and Properties Division  Establishes the State Construction Administrator  Establishes the Duties of the Division  Provides for Administrative Rules  Applies to State Agencies  Some unintended overlap for school districts/political subdivisions

DCS/Construction and Properties Division State Consultants: Construction Managers and Consultants  Title 61, Sections  Consultants  Architects  Landscape Architects  Engineers  Land Surveyors  Construction Managers  Environmental Consultants  Other Design Consultants

DCS/Construction and Properties Division State Consultants  Title 61, Section 62  Defines Selection Process  Qualification Based Selection - Fees to be negotiated  Fees may not be discussed or considered during selection  Consultants register with CAP annually  Agencies request list, solicit, screen and interview  CAP assigns representative to assist Agency  CAP Awards all Consultant Contracts  Also Establishes the On-Call Consultant Program for minor projects

DCS/Construction and Properties Division Consultants – Legal Requirements for Architects and Engineers  Pursuant to Title 59  Board of Governors of Licensed Architects  Architect required if Project is > $158,000  Board of Engineers and Land Surveyors  Requirements are complex, consult with CAP  CAP may require a Consultant for other complex projects  Someone has to plan, design and prepare bid documents  Generally not necessary for maintenance, repairs, small improvement projects

DCS/Construction and Properties Division Construction Managers  Assist with pre-construction planning  Assist with value engineering, cost control  Constructs the project ‘At-Risk’  Beneficial on large or complex projects  Approval required by DCS Other Consultants  Environmental Services  Food Service Consultants  Any recognized profession necessary to plan or design construction, renovation or maintenance work

DCS/Construction and Properties Division Fair Pay for Construction Act  Title 61, Section 221  Applies to a Public Construction Project >$25K  Contractor must be paid within thirty days  Contractor due interest of 1 1/2% per month if not paid on time  Clock starts when proper invoice is submitted by Contractor  Clock stops if invoice is rejected or returned for corrections

DCS/Construction and Properties Division Fair Pay for Construction Act  Process to Pay a Contractor  Contractor sends pay-application to Consultant for approval or (directly to agency if no consultant)  Consultant forwards to CAP for approval  CAP approves and sends to Agency  Agency approves and sends to OSF  OSF approves and sends to State Treasurer  Treasurer cuts paper check and sends to Agency  Agency mails check to Contractor We’ve got Thirty Days!

DCS/Construction and Properties Division  Oklahoma Administrative Code  OAC 580:20 - CAP Rules  Procedures and requirements more fully stated  Procedures for advertising, bidding  Selecting consultants, construction managers  Vendor registration – consultants and CM firms

DCS/Construction and Properties Division Central Procurement for Construction Services  CAP Procures Design and Construction services for State Agencies  Reviews and approves construction plans  Inspects work prior to final acceptance and payment  Assist agencies with selection and award of consultant contracts  Issues bid solicitations for public construction projects > $50K  Awards Public Construction Contracts (other than < $5,000)  Monitors work of Consultants  Monitors construction projects  Assists State Agencies with their construction needs

DCS/Construction and Properties Division Responsibilities of the Administrator (SCA)  Designate forms and contracts required for Consultant and Construction Contracts  Approve and sign all contracts on behalf of the State  Approve and sign all change orders  Review and approve Consultant selection processes  Review and approve construction plans  Report emergencies declared by public agencies  Chief Officer of Construction and Properties Division

DCS/Construction and Properties Division

Communicating with CAP Telephone  talk to a human being Web Site  - click on Construction & Properties link  Announcements  Contact Information  Program Information  Forms  FAQ’s  Library – Policies, Presentations, Memos  Title 61 and CAP Rules available here

DCS/Construction and Properties Division

The Procurement Process - Requisitions and Purchase Orders  CAP Form M701  Requisition with Instructions and Funding Line  Agency Purchase Order to CAP for Statutory Fee  Plans / Specifications  Bid Form (draft)  CAP Reviews, Bids or Awards  CAP Prepares Contracts and signs on behalf of State  CAP cuts Purchase Order from Agency’s Requisition

DCS/Construction and Properties Division The Requisition (PeopleSoft)  Item Code – Consultant or Construction  Funding Line  Comments Section  PeopleSoft Term Codes – are referenced on CAP M701 in the fee schedule  Terms and Conditions are in CAP’s Paper Contract; do not add contract clauses to Requisition  Do not reference Central Purchasing Act requirements  Include Agency Contact information and other requirements as needed

DCS/Construction and Properties Division

 Purchase Order for CAP Fee  Payable to Department of Central Services, Construction and Properties Division  Comments Section  PeopleSoft Code for all CAP Fees is TRM0277  Payable by PO, blanket PO or PCard

Building Greatly: Construction & Properties Segment DCS/Construction and Properties Division 405/ Mike Jones Acting State Construction Administrator Department of Central Services Construction and Properties Division