1. Building Greatly: Construction & Properties Department (CAPD)Segment DCAM/Construction and Properties Department www.dcs.ok.gov 405/521-2112 Mike Jones Acting State Construction Administrator Division of Capital Assets Management Construction and Properties Department

2. DCAM/Construction and Properties Department “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

3. DCAM/Construction and Properties Department  Procuring Construction Services  Statutes and Rules  Duties of the Department (CAPD)  Doing Business with CAPD

4. DCAM/Construction and Properties Department Department of Capital Asset Management (DCAM)/Construction & Properties Department:  Central Procurement Authority for State Agencies  Procurement and Contracts governed by Title 61 and CAPD 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

5. DCAM/Construction and Properties Department Construction and Properties Department Basics  CAPD = Construction and Properties Department  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  Department = Construction and Properties Department  Agency or Using Agency = CAPD’s Customer

6. DCAM/Construction and Properties Department Common Procurement Actions through CAPD  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 CAPD’s IDIQ Contracts (Indefinite Delivery Indefinite Quantity), similar to a statewide contract

7. DCAM/Construction and Properties Department Common Procurement Actions through CAPD:  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 CAPD Line-Item (Statewide) Contract  Select an integrated Design-Build firm for turnkey project delivery (RFQ/RFP Process)

8. DCAM/Construction and Properties Department 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: CAPD Rules

9. DCAM/Construction and Properties Department Public Competitive Bidding Act of 1974  Title 61, Sections 101-138  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 CAPD

10. DCAM/Construction and Properties Department Public Competitive Bidding Act of 1974  Public Construction Contract Projects > $50,000  CAPD is awarding public agency  Public, competitive bidding required  CAPD 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 Department

11. DCAM/Construction and Properties Department 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

12. DCAM/Construction and Properties Department 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

13. DCAM/Construction and Properties Department 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 DCAM Director

14. DCAM/Construction and Properties Department Public Competitive Bidding Act of 1974  Projects < $50,000  Agency may solicit 3 bids by mail, fax, email  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 CAPD for Contract Award  CAPD Form M800: Standard Procedures for Obtaining Bids – Projects Under the Statutory Amount

15. DCAM/Construction and Properties Department 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 CAPD for award).  Insurance and written contract required  Payment by P-Card is acceptable  CAPD Form M601: Contract for Minor Construction  Agency awards, can pay with PO or P-Card

16. DCAM/Construction and Properties Department 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

17. DCAM/Construction and Properties Department 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

18. DCAM/Construction and Properties Department 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: CAPD awards emergency contracts  Call CAPD to apprise of emergency situation, follow with declaration  Send requisition for contract award to CAPD  State Construction Administrator submits annual report on Emergency Declarations to Governor & Legislature

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

20. DCAM/Construction and Properties Department State Consultants: Construction Managers and Consultants  Title 61, Sections 60-65  Consultants  Architects  Landscape Architects  Engineers  Land Surveyors  Construction Managers  Environmental Consultants  Other Design Consultants

21. DCAM/Construction and Properties Department 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 CAPD annually  Agencies request list, solicit, screen and interview  CAPD assigns representative to assist Agency  CAPD Awards all Consultant Contracts  Also Establishes the On-Call Consultant Program for minor projects

22. DCAM/Construction and Properties Department 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 CAPD  CAPD 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

23. DCAM/Construction and Properties Department 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 DCAM Other Consultants  Environmental Services  Food Service Consultants  Any recognized profession necessary to plan or design construction, renovation or maintenance work

24. DCAM/Construction and Properties Department 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

25. DCAM/Construction and Properties Department 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 CAPD for approval  CAPD approves and sends to Agency  Agency approves and sends to OMES  OMES approves and sends to State Treasurer  Treasurer cuts paper check and sends to Agency  Agency mails check to Contractor We’ve got Thirty Days!

26. DCAM/Construction and Properties Department  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

27. DCAM/Construction and Properties Department Central Procurement for Construction Services  CAPD 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

28. DCAM/Construction and Properties Department 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 Department

29. DCAM/Construction and Properties Department

30. Communicating with CAPD Telephone  521-2112 - talk to a human being Web Site  www.ok.gov/DCS (still DCS as of March 2013) - click on Construction & Properties link www.ok.gov/DCS  Announcements  Contact Information  Program Information  Forms  FAQ’s  Library – Policies, Presentations, Memos  Title 61 and CAPD Rules available here

31. DCAM/Construction and Properties Department

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

37. DCAM/Construction and Properties Department 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 CAPD’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

38. DCAM/Construction and Properties Department DCS/Construction and Properties Division

39. DCAM/Construction and Properties Department

40.  Purchase Order for CAPD Fee  Payable to Department of Capital Asset Management, Construction and Properties Department  Comments Section  PeopleSoft Code for all CAPD Fees is TRM0277  Payable by PO, blanket PO or PCard

42. Building Greatly: Construction & Properties Segment DCAM/Construction and Properties Department www.dcs.ok.gov 405/521-2112 Mike Jones Acting State Construction Administrator Division of Capital Asset Management Construction and Properties Department