4/25/2015 Capo USD, Bidding, Procurement & Selection Process 1 The Bidding, Procurement & Selection Process Board Study Session Monday, June 25, 2007 Eric Hall

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 2 Key Questions 1. What are the requirements for competitive bidding? 2. What are the stages in the bidding process? 3. What are the various bid structures available to the district? 4. What are the requirements/practices for the selection of Contracts for Special Services? 5. What is the district’s philosophy?

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 3 Bid Limits Public work projects that meet or exceed $15,000 involving labor; and Projects where materials and/or equipment exceed $69,000. Formal bids are required in all cases where supplies, equipment, and services exceed the State mandate under Public Contract Code. Bids required for:

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 4 Recent Bid Approvals Provide/install book lockers at Aliso Niguel HS, Aliso Viejo MS, Newhart MS Example: Bid # , May 7, 2007 Bid price = $301,350 Artificial turf at San Juan Hills HS Example, Bid # , April 2, 2007 Bid price = $2.095 million Newhart Middle - 2 story modular classroom grading and site work Example Bid # 06-07– 26, June 4, 2007 Bid price = $1.93M

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 5 Bid Process: Pre-Bid Stage Preparation is Critical ! 1. Identify need for materials or services; 2. Identify that a Budget has been developed and approved and that funds are available; 3. Determine scope of work; 4. Develop specifications to meet scope of work; 5. Request Board approval to go out for bid;

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 6 Bid Process: Bid Stage 6. When appropriate Utilize OCDE general bid documents; 7. Include specifications; 8. Establish bid opening date and time; 9. Advertise for two weeks in a journal of general publication.

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 7 Specifications – Finding the Balance Require high caliber contractors Proven ability to perform public works or specific to school work? Ability to respond to district’s needs Equipment and labor force sufficient for size of job But……encourage and Include all capable contractors Keep contact information on all contractors that have expressed interest Encourage contractors to bid Answer Request For Information (RFI) expediently and clearly

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 8 Bid Stage: Pre Selection 1. Open bids at the place, time, and date advertised (open to the public); 2. Review documents to determine bidder is qualified, see below; 3. Tabulate bid prices submitted;

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 9 Bid Stage: Pre Selection 4. Confirm contractor licenses 5. Board Approval Example, HVAC equipment Del Obispo Elem & RH Dana ENF Bid # , June 4 board, $587k) 6. Agreement signed, notice to proceed and purchase order issued.

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 10 Bid Stage: Pre Selection Bids submitted must be sealed Bids must be received at the designated place and time Bid openings are open to all interested parties Bids must meet definition of “responsive”

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 11 Bid Stage: Selection Criteria Items submitted by bidders (with bid)  Bid bond  Bid form  Designation of subcontractors  Information required of bidder  Certification of participation of Disabled Veteran Business Enterprise (DVBE)  Non-collusion affidavit, notarized

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 12 Bid Structures General Contractor Bid Typically used for construction projects Architectural plan and specification issued to bidders Mandatory pre-bid conference and/or job walk conducted Sub-contractors listed

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 13 Bid Structures Unit Price Bids Used when the volume of work or materials required is not known Bidders provide a per-hour rate for specific trade, apprentice, and laborer Bidders provide prices based on a specific unit of measure

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 14 Bid Structures Unit Price Bids Possible work that may occur during the year-used to secure price in advance Used for – Emergency repairs – Montano Plumbing Supplement labor force – PRB Construction Specialized work – Hardy & Harper Paving Materials – California Electrical Distributors

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 15 Bid Structures Extensions of Bids Allowed by Education Code Labor bids may total five years; One year contract may be extended for 4 additional years. Material and supplies bids may total four years; One year contract maybe be extended for 3 additional years.

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 16 Bid Structures Extension of Bids May be in the best interest of the district Contractor knowledge and experience Prices are secured, 10% cap on increases Extensions may be good business decision Efficient use of staff time District must consider the need to ‘pass the work around’.

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 17 Bid Structures Extension of Bids Is Competition restricted? Is there a potential for better price? Does an extension limit the district? New and different processes New and better contractors A fresh approach to services New contractors moved into the field Speaks to the need to balance extensions with new bids

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 18 Bid Structures Piggyback Bids Allowed by PCC and Equipment and materials only Contract items are identical to CUSD specifications Saves time and money Economies of scale

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 19 Bid Structures Common Types of Piggyback Bids General Services Agency (GSA) - Federal California Multiple Awards Schedule (CMAS) - State Other public agencies, such as county, state, and other school districts Co-ops, used in Food Services

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 20 Bid Structures: Piggyback Bids Bids generated by CUSD, others have used: Musical instruments Audio visual equipment Flooring Shade Structures Bids generated by others CUSD has used: Classroom furniture Computers Gasoline Buses

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 21 Special Services Contracts: Guidelines and Procedures Government Code section creates an exception to competitive bidding laws Special services and advice: 1. financial 2. economic 3. accounting 4. engineering 5. legal 6. textbooks, library books, etc.

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 22 Special Services Contracts: Guidelines and Procedures The district can solicit under a Requests for Proposals (RFP) format, Or, The district can solicit under a Request for Qualification (RFQ) format. RFP’s include pricing, schedule and terms, RFQ’s ask for only qualifications Or, The district can look for providers of services by asking for simple quotes.

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 23 Special Services Contracts: RFP’s & RFQ’s The RFP or RFQ Process District solicits for goods or services District spells out desired outcome Proposals provide solutions to desired outcome Award based on criteria that best meets desired outcome

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 24 Special Services Contracts: Recent Approvals Recently approved RFP/RFQ’s include: Architectural services Copier improvement program Parent notification system Planning/relocation mgmt services Superintendent search firm

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 25 Special Services Contracts: What’s included? Proposals often include: A Not to Exceed (NTE) price Terms, monthly, annual, renewals Insurance coverage Names of reps working with us All Agreements approved by Board Purchase orders issued May encumber the entire amount Budgetary Cash flow may suggest incremental p.o.’s

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 26 Summary: What have we covered? Limits Stages Bid Specs Structures General Contract Unit Rate/Price Piggy Back Extensions Contracts for Special Services and Advise RFP’s, RFQ’s or simple quotes And now two questions for consideration…….

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 27 Discussion Each District must determine its bidding philosophy based upon the board’s policy…. and the recommendations of staff. Two Discussion Questions for consideration: 1. What is our bidding philosophy? 2. How can we improve the selection process?

4/25/2015 Capo USD, Bidding, Procurement & Selection Process 28 Thank You !!