The Bidding, Procurement & Selection Process

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

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

3. Bid Limits Formal bids are required in all cases where supplies, equipment, and services exceed the State mandate under Public Contract Code. Bids required for: • Public work projects that meet or exceed $15,000 involving labor; and • Projects where materials and/or equipment exceed $69,000. 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 # 06-07-21, May 7, 2007 • Bid price = $301,350 • Artificial turf at San Juan Hills HS • Example, Bid # 06-07-12, 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 Capo USD, Bidding, Procurement & Selection Process

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

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

9. Bid Stage: Pre Selection • Confirm contractor licenses • Board Approval • Example, HVAC equipment Del Obispo Elem & RH Dana ENF Bid #06-07-23, June 4 board, $587k) • Agreement signed, notice to proceed and purchase order issued. 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” 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 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 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 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 Capo USD, Bidding, Procurement & Selection Process

15. Bid Structures Extensions of Bids • Allowed by Education Code 17596 • 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. 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’. 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 Capo USD, Bidding, Procurement & Selection Process

18. Bid Structures Piggyback Bids • Allowed by PCC 20118 and 20652 • Equipment and materials only • Contract items are identical to CUSD specifications • Saves time and money • Economies of scale 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 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 Capo USD, Bidding, Procurement & Selection Process

21. Special Services Contracts: Guidelines and Procedures Government Code section 53060 creates an exception to competitivebiddinglaws Special services and advice: • financial • economic • accounting • engineering • legal • textbooks, library books, etc. 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. 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 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 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 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……. 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: • What is our bidding philosophy? • How can we improve the selection process? Capo USD, Bidding, Procurement & Selection Process

28. Thank You !! Capo USD, Bidding, Procurement & Selection Process