1. eziqc INFORMATIONAL SEMINAR
September 26, 2016

2. Agenda ezIQC® Overview ezIQC® Contract Documents ezIQC® Process
Benefits to Contractors
Misc
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® is an Umbrella Contract
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 Option Periods
ezIQC® has $0 Guaranteed
ezIQC® has no Estimated Annual Value
But, Upside is Unlimited 9 5

6. ezIQC® Process – How is ezIQC® Bid?
Award Based on Best Value
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 to determine a value
Ability to meet Delivery Requirements
Reputation of the Vendor
Quality of Services
Vendor Past Performance
Vendor Personnel 10 6

7. 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 7

8. 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 8

9. 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 9

10. 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 10

11. 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 11

12. ezIQC® Contract Documents
Front End Documents
Construction Task Catalog®
Technical Specifications 6 12

13. ezIQC® Contract Documents
Front End Documents
Contract Overview & Details
Submittal Requirements
Instructions to Proposers
Attachments to be submitted with the Proposal
Terms and Conditions
Bond Requirements
Warranty
Liquidated Damages
Changes in the Work 6 13

14. 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 14

15. ezIQC® contract documents
Technical Specifications
Specifies Quality of Materials and Workmanship
Corresponds with Tasks in the Construction Task Catalog® 8 15

16. 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 16

17. ezIQC® Contract Documents7 17

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

19. Non Pre-priced Tasks Work Tasks not in the CTC
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)

20. 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 20

21. 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 1028 mbh oil fired cast iron boiler. Weil-McLain Model 88. No access for packaged boiler. Must field assemble sections. Provide new piping as required. 21

22. Sample project – price proposal22

23. 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 and Hardware $ 8,282.09
Lighting $ 13,119.77
Plumbing $ 11,886.53
TOTAL = $ 66,344.12
Replace Boiler $ 33,725.00
Doors and Hardware $ 7,750.00
Lighting $ 12,225.00
Plumbing $ 11,590.00
TOTAL = $ 65,290.00 23

24. 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. 24

25. Contractor adjustment factor
Importance of Adjustment Factors
Determines Winning Bidder AND
Used to Price Individual Work Orders
Price Proposal Total Becomes the Lump Sum Work Order Amount

26. 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

27. 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 27

28. Questions and discussion4 28 4