1. Pre-Proposal Conference
ezIQC
Pre-Proposal Conference
October 13, 2016

2. Pre-Bid Conference Agenda
ezIQC® Overview
ezIQC® Contract Documents
ezIQC® Process
Solicitation Details
Understanding the Construction Task Catalog® (CTC)
Calculating the Bid
Contractor Adjustment Factors
Bid Considerations & Review
Risk of Low Adjustment Factors
Questions

3. ezIQC® Overview
ezIQC® is an Indefinite Quantity Construction Contract (“IQCC”)
Based on Job Order Contracting (“JOC”)
JOC Introduced in the United States in 1985
Dept. of Defense, USPS, NASA, etc.
Implemented by states, counties, cities, K-12 schools, universities, housing authorities, etc. since 1990
ezIQC® introduced in 2008 for cooperative purchasing
Fastest growing segment of the JOC marketplace
Hundreds of contracts currently in use
Over $1.4 Billion in construction placed annually through Gordian JOC/ezIQC® systems

4. eziqc® is an Umbrella Contract6 4

5. ezIQC® Overview Why ezIQC® Works for Contractors
Good work is rewarded with more work
Profit is a function of volume
Volume is driven by performance
JOC provides a steady flow of work
Win a higher percentage of proposed projects
Easier process for project proposals
Long-term relationship with the Member
Develop partnership with the Member
Ability to leverage Subcontractor and Supplier relationships
Ability to sell value, not just compete to be the lowest price
Sales and Marketing education and support 12 5

6. ezIQC® Overview Why ezIQC® Works for Contractors Reduced Risk
Fixed prices
No negotiations
Payment for every element of work performed
Ability to provide input during scope development
Eliminates quibbling over change orders
Reduced chance of claims
Build bond capacity
Larger presence and enhanced reputation in the local community 12 6

7. ezIQC® Overview Why ezIQC® Works for Subcontractors
Responsiveness requires local prime presence and use of multiple local subcontractors.
Wide range of possible projects means variety of subcontractors will be needed to fulfill the contract.
Simplified procurement process for the Owner allowing them to procure more work in a shorter period of time. Results in greater number of subcontractor opportunities
Multiple projects on multiple sites simultaneously. 12 7

8. ezIQC® Overview PACE Members Use ezIQC® to Save Time
Cost Effective Alternative to the Traditional Bid
Faster Procurement = Weeks Instead of Months
Member-Contractor Partnership = Non-Adversarial Relationship 8

9. ezIQC® Contract Documents
Request for Proposals Document
Construction Task Catalog®
Technical Specifications 6 9

10. ezIQC® Contract Documents
RFP Documents
Project Information, Instructions to Bidders, and Execution Documents
Project Information
Instruction to Bidders
Bid Forms
Terms and Conditions
Insurance Requirements
Bond Requirements
Warranty
Liquidated Damages 6 10

11. ezIQC® Contract Documents
Construction Task Catalog® (CTC)
Catalog of Pre-Priced Construction Tasks
Organized by Construction Specifications Institute (CSI)
Based on Local Labor, Material & Equipment Costs
The tasks represent the “Scope of Work” for the contract 7 11

12. Understanding the Construction Task Catalog®
Contractor must review and understand “Using the Construction Task Catalog®”
Rules of the game
Make sure you get paid for all appropriate tasks
Pages 00 – 1 to 00-8 of the CTC
General Rules
Unit Prices are for Complete and In-Place Construction
Unit Prices Include Labor, Material and Equipment. Do Not Add Labor to Task
Unit Prices Include the Cost of Delivery to Site, Unloading, Storage and Handling. Delivery Height is up to 2 ½ Stories
Unit Prices Include Testing, Calibration, Balancing Etc. for New Work
Unit Prices Include all Fasteners, Bolts, Anchors, Adhesives Etc. For New Work
Unit Prices for Tasks Such as Windows, Doors, Frames, Countertops Etc. Include Sealant and Caulk
Demo Price Includes Loading into Truck or Dumpster
If Item Demolished as Part of Different Task, It will Not Be Paid for Separately
Contractor Paid for Installed Quantities Only. Waste is Included in Unit Price
Assembly Prices take Precedence over Component Pricing
14’ Working Height for All Work Except Masonry
4’ Working Height for Masonry
Dumpsters are a Separate Task
Contractors Never Get Paid Separately For:
Joint Scope Meetings and Proposal Preparation
Moving and Returning Furniture Occupying Less than 55% of Floor Area. For Example, Moving Classroom Furniture to Paint Room
Labor for Protecting Work in Place. For Example, a Laborer to Stay After a Concrete Pour
Plastic, Drop Clothes, Etc. to Protect Surfaces Not in the Scope of Work
Minor Barricades and Signage.
Portable Toilet, Field Office, Field Office Equipment for Contractor’s Use
Layout, Site Engineering for the Work Itself
Include All Appropriate Tasks:
Mobilization Task for Excavation Equipment, Paving Equipment, Cranes, etc.
Minimum Set up Charges for Core Drilling, Saw Cutting, etc.
Minimum Charge for Small Area Pavement Repairs
Paid Separately for Removing Demolition Material and Waste Material From Site
Scaffolding or Lifting Equipment over 14’ (4’ for Masonry)
Modifiers for Small or Large Quantities 12

13. ezIQC® Contract Documents7 13

14. Understanding the Construction Task Catalog®
Include All Appropriate Tasks:
Compare these prices
* Sample only

15. Non Pre-priced Tasks
Contractor must have permission from the PACE Member to use a Non Pre-priced Task prior to submitting a Price Proposal
Three (3) Quotes on a vendors’ or subcontractors’ letterhead
Justification for less than three (3) Quotes
Contractor is paid the NPP Lowest Quote x Quantity x NPP Adjustment Factor
The Non Pre-priced Adjustment Factor remains the same for the duration of the Contract (all Terms)

16. ezIQC® Contract Documents
Technical Specifications
Specifies Quality of Materials and Workmanship
Corresponds with Tasks in the Construction Task Catalog® 8 16

17. ezIQC® Process – How is ezIQC® Bid?
Award Based on Competitive Bid RFP
Must Bid 3 Adjustment Factors:
Normal Working Hours, 7:00 am to 4:00 pm Monday to Friday
Other Than Normal Working Hours, 4:00 pm to 7:00 am Monday to Friday, and all day Saturday, Sunday and Holidays
Non Pre-priced Tasks (Not in the CTC)
Adjustment Factors Apply to All Tasks in the CTC
Each Adjustment Factor is Weighted – Combined Adjustment Factor is worth 40% of the Proposal Evaluation
Reputation of Proposer (15%)
Quality of Proposer’s Services (10%)
Proposer’s Services meet Member needs (15%)
Proposer’s Past Performance (10%)
Proposer’s long term cost to Members (10%) 10 17

18. ezIQC® Process - How is Work Done?
Scope Development
Joint Scope Meeting With PACE Member, Contractor, and Others to define the Detailed Scope of Work
PACE Member Issues RFP for the Agreed Upon Detailed Scope of Work
Proposal Development
Typical Proposal Due Date will be 2 weeks from RFP
Proposal Review
Issuance of Work Order
Total Time: Average 3-5 weeks 11 18

19. Bid Considerations Contractors Should Expect To
Prepare Incidental Drawings or Sketches for Some Projects
Justify Quantity Calculations
Explain Detail of Work
Prepare Proposals for Some Projects That Might be Canceled
Margins on CTC Tasks Vary
Some Projects are More Profitable than Others
Market & Sell Contract to PACE Members
Maintain a Fully Functioning Office Near Clients
Hold Required Licenses 42 19

20. Annual Adjustment Factor Update
Annual Price Adjustment
Applied annually on the anniversary of the Award Date
Based on CCI (20 city average) published by Engineering News Record
Calculation (Based on Solicitation month)
Average CCI for Current Year = The % Increase or Decrease in Average CCI for Base Year Construction Costs
Percentage x Original Adjustment Factors = New Adjustment Factors for Next Year
Normal Working Hours
Other Than Normal Working Hours
NPP Adjustment Factors are Fixed for
the Duration of the Contract

21. Solicitation Details 21

22. Solicitation Details 22

23. Solicitation Details Prior to Bidding PACE Cannot:
Identify or Commit to any Specific Project, Location or Member
Identify or Commit to any Specific CTC Tasks or Quantities
Defined Geographic Area
May Work for any PACE Member within a Geographic Area
May Work Outside the Area if Desired and PACE Approval
Contract has a 1 Year Term With 4 Options
ezIQC® has No Guaranteed Value
But, Upside is Unlimited 9 23

24. Solicitation Details Bid Security Payment and Performance Bonds
$25,000
Payment and Performance Bonds
Statement of Bonding Capacity
Bonds Not Required at Contract Award
Bonds May be Required for Certain Projects
Bond Costs Reimbursed
Differing Site Conditions or Changes in Scope
Priced from Construction Task Catalog®
Supplemental Work Order
No Negotiated Change Orders 24

25. Solicitation Details
After Payment Received from PACE Member, Contractor Must Send 7.25% of Payment Received to ezIQC®, LLC
Contractor Includes 7.25% Markup in the Contractor’s Adjustment Factors
ezIQC® pays PACE’s administrative fee
Filings and Permits
Fees paid for all Permits Reimbursed at Fixed Markup
110%
Payment and Performance Bonds
Fees paid for all Bonds Reimbursed at Fixed Markup
Liquidated Damages
On a Project-by-Project Basis
MBE/WBE Requirements
A PACE Member may have additional Requirements
No additional charge 25

26. Solicitation Details Internet Based Software Provided with Contract
eGordian® Software Automates the Proposal Process
No Additional Cost to Contractors for Software License or Training 22 26

27. Solicitation Details Contractors May Bid on Multiple Contracts
Contractor Provides Coverage for the Entire Geographic Area and may also do work in Oklahoma and Arkansas
Have multiple Contractors within the Geographic Area 27

28. Methods to Calculate Bid – Adjustment Factors
Recommended Method
Use Historical Project Data
Select a Completed Project
You Know Scope and Direct Costs
Price Project From CTC
Add on Overhead and Profit
Calculate the Adjustment Factor
Create a Representative Project
Create a Scope of Work
Get Sub Quotes or Estimate Cost
Price Project From CTC
Add on Overhead and Profit
Calculate the Adjustment Factor 28

29. Sample Project - Detailed Scope of Work
Administration Building and Shop Renovation
Doors and Hardware
Replace 12 interior doors, hinges and hardware
Doors shall be 3x7, solid core wood doors
Grade 2 locksets with knobs
Replace 2 push bar exist devices and door closers on exit doors
Interior Lighting
Replace all lay-in troffer fixtures on first and second floors. 48 in total
Replace 4 exit fixtures
Replace 12 industrial fixtures in shop area
Plumbing Fixtures
Replace 8 bathroom sinks, 8 faucets, and 8 toilets in men’s and women’s bathroom in admin building and shop area
Replace 4 water fountains
Replace Boiler
Demo existing boiler and as much piping and venting to accommodate new boiler. Install a new mbh oil fired cast iron boiler. Weil-McLain Model 88. No access for packaged boiler. Must field assemble sections. Provide new piping as required. 29

30. Sample Project – Price Proposal30

31. Sample Project – Price Proposal vs. Quotes
Direct Cost of Work from CTC
Direct Cost of Work from Quotes or Estimates
Replace Boiler $ 33,055.73
Doors/Hardware $ 8,282.09
Lighting $ 13,119.77
Plumbing $ 11,886.53
TOTAL = $ 66,344.12
Replace Boiler $ 33,725.00
Doors/Hardware $ 7,750.00
Lighting $ 12,225.00
Plumbing $ 11,590.00
TOTAL = $ 65,290.00 31

32. Sample Project – putting it all together
A. Direct Cost of Work from Quotes $65,290.00
B. Overhead 10%* $6,529.00
C. Subtotal (Cost & O/H) $71,819.00
D. Profit 10%* $7,181.90
E. Subtotal (Cost & O/H & Profit) $79,000.90
F. Price From CTC $66,344.12
Adjustment Factor (= E / F) =
*Sample Only. Contractor to determine O/H & Profit.
Prepare this calculation for more than one sample project. 32

33. Filling out Bid Form * Sample only 1 1 9 0 8 1 2 8 3 9
Other Than Normal Hours must be higher than Normal Hours
Non Pre-priced Adjustment Factor must be between & , excluding the admin fee
* Sample only 33

34. Risks of Low Adjustment Factor
Leads to Arguments in Proposal Review
Unsupportable Tasks
Exaggerated Quantities
Leads to Delays in Work Order Development
Takes Longer to Review Proposals
Creates an Adversarial Relationship
Reduced Volume of Work
Will Shorten Contract
Lost Profitability
No Second Chance to Improve your Margin

35. Contractor Adjustment Factor
Importance of Adjustment Factors
40% of Proposal Evaluation AND
Used to Price Individual Job Orders
Price Proposal Total Becomes the Lump Sum Job Order Amount
TOTAL JOB ORDER PRICE

36. Review / Key Points Focus on Total Potential Value of Contract
1 Year plus x 4 Options
Evaluate Construction Task Catalog®
Analyze Unit Prices
Know the General Guidelines for Using the CTC
Contractor Performance Drives Volume
Ability to Market Program and Services
Responsive Service
Accurate Proposals
Safe and Clean Project Sites
High Quality Construction
On-Time Completion
On Time Close Out 4 36 4

37. Solicitation Details 37

38. Solicitation Details 38

39. PACE Purchasing Cooperative
Questions?
All questions should be directed between 8:00 a.m. and 4:30 p.m., Monday through Friday to:
Jim Metzer
PACE Purchasing Cooperative
1314 Hines Avenue
San Antonio, TX
(210)
Questions regarding this RFP must be submitted electronically or in writing to the or physical address above no later than five (5) business days prior to submittal deadline date. 4 39 4