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CONSTRUCTION CONTRACTORS PROJECT AWARENESS EVENT November 29, 2012 4PM – 6PM

WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL. CONSTRUCTION CONTRACTORS PROJECT AWARENESS EVENT November 29, 2012 4PM – 6PM. Bowie Gridley Architects / Perkins + Will. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL. Introductions Department of General Services (DGS)

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CONSTRUCTION CONTRACTORS PROJECT AWARENESS EVENT November 29, 2012 4PM – 6PM

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  1. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL CONSTRUCTION CONTRACTORS PROJECT AWARENESS EVENT November 29, 2012 4PM – 6PM Bowie Gridley Architects / Perkins + Will

  2. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Introductions • Department of General Services (DGS) • Chiaramonte/HESS, A Joint Venture • Department of Employment Services (DOES) • Department of Small and Local Business Development (DSLBD) • City First Bank Bowie Gridley Architects / Perkins + Will

  3. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Agenda • Procurement Method • Project Schedule • Bidding Opportunities • Economic Inclusion Requirements • Certified Business Enterprises (CBE) Requirements • Workforce Incentive Program (WIP) • Davis-Bacon • First Source Program • Apprenticeship Program • Economic Inclusion Support • CBE Financial Assistance & Capacity Building Program

  4. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Procurement Method(Chiaramonte|Hess) • Design-Build Delivery • Fast Track Methodology • Phased Bid Process

  5. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Project Schedule (Chiaramonte|Hess)

  6. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Project Schedule (Chiaramonte|Hess) • Phase 1 - Jan 2013 – Summer 2014 • Demolish Existing Football Stadium • Construct New Ballou SHS • Phase 2 – Summer 2014 – Winter 2014/2015 • Demolish Existing Ballou SHS • Construct New Parking and FB Stadium

  7. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Bidding Opportunities (Chiaramonte|Hess) • Prime Bid Packages (Preliminary)

  8. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Bidding Opportunities (Chiaramonte|Hess) • CBE Subcontracting Opportunities Concrete Masonry Rebar Misc. Metals Structural steel Carpentry Millwork Roofing Joint sealants Doors frames & hardware Glass & glazing Drywall & acoustics Painting Flooring Ceramic tile Specialties Display boards Flag poles Fire extinguisher Food service equipment Signage Fire alarm systems Furnishings Window treatments Casework Elevators Mechanical Fire suppression Plumbing Ductwork Electrical Communications Earthwork Paving Utilities Landscaping Hauling Final cleaning And more...

  9. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Procurement Timeline (Preliminary) (Chiaramonte|Hess) • Dec. 3, 2012 – Dec. 14, 2012 • Early Sitework Package      • Dec. 28, 2012 – Jan. 11, 2013 • Concrete Package                            • Steel Package • Glass Package • Mech/Plb Package • Electrical Package • Feb. 05, 2013 – Feb.25, 2013 • Remaining Trades   

  10. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Requirements (DGS) • Certified Business Enterprises • Definition: A Certified Business Enterprise (CBE) is a business that is has been certified by the Department of Small and Local Business Development (DSLBD) and: • Maintains a principal office in the District (i.e. headquartered); • Has demonstrated that the chief executive officer and highest level managerial employees of the business maintain their offices and perform their managerial functions in the District; • Meets one of the four following standards: • More than 50% of the assets, excluding bank accounts, are located in the District; • More than 50% of the employees are residents of the District; • The owners of more than 50% of the business enterprise are residents of the District; or • More than 50% of the total sales or other revenues are derived from transactions in the District • Is properly licensed under DC law; and • Is subject to tax under DC law (Chapter 18 of Title 47)

  11. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Requirements (DGS) • DGS Subcontracting Requirements • DGS requires that 50% of all dollars spent on its projects be spent with businesses certified by DSLBDas a CBE. • DGS requires that each construction contract for which a certified business enterprise is selected shall include a requirement that the business enterprise perform at least 35% of the contracting effort, with its own organization and resources and, if it subcontracts, 35% of the subcontracted effort shall be with certified business enterprises. • DSLBD Joint Venture Certification • A joint venture shall be eligible for certification with DSLBD if the joint venture intends to submit a response to a District government issued solicitation in which the joint venture will provide goods to or perform services for the District, and has a member that owns a majority interest or minority interest in the joint venture business enterprise and meets the definition of a certified business enterprise. Once the District contract is awarded the Department shall not accept any additional applications for joint venture certification in connection with the particular District government solicitation issued. • Firms that desire to form JVs in response to contracting or subcontracting opportunities issued by the construction managers may continue to do so; however, the JV will not be certified by DSLBD.

  12. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Requirements (DGS) • Workforce Incentive Program (WIP) • The Workforce Incentive Program (WIP) was created in FY11 to increase participation of District residents on project. The program is administered by DGS and includes all new capital construction projects. District resident workforce for service contracts and goods purchased are also tracked in DGS. • WIP incentivizes contractors and subcontractors to increase hiring of District residents to 35% or more of hours worked on a project by: • Providing the general contractor an incentive of up to 5 percent of its fee for achieving District-resident hiring targets established as part of its Guaranteed Maximum Price (GMP) for the project; and • Providing subcontractors an incentive payment equal to 10 percent of payrolls that are paid to District residents on the project.

  13. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Requirements (DGS) Workforce Incentive Program (WIP) Candidates Referred to Subcontractor for Hire. 1 Incentive Payments 2 Subcontractor Hires Unemployed District Residents. 3 Submit Weekly Certified Payrolls.

  14. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Requirements (DOES) • Davis-Bacon • Requirements • The act covers all contracts over $2,000 which calls for the construction work financed from federal and/or District funds under statutes containing Davis-Bacon provisions. All covered contracts must contain a wage determination issued by the Secretary of Labor. • Monitoring • DOES monitors the Federal Davis-Bacon Law by reviewing the certified payrolls on each District- funded construction project. • Reward/Penalties • The Department of General Services (DGS) can withhold sufficient funds from offending contractors to compensate underpaid employees; • In addition, contractors and subcontractors can be held liable to the District for liquidated damages; and/or • A contractor can be debarred for violations for a three-year period.

  15. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Requirements (DOES) • Apprenticeship Program • Requirements • All prime contractors and subcontractors performing any construction, renovation or information technology work exceeding $500K in a single or cumulative contract in a 12-month period, must have a registered apprenticeship program with the DC Apprenticeship Council. • 35% of all apprenticeable hours performed pursuant to apprenticeship program are required to be performed by District of Columbia residents. • Monitoring • Certified payrolls which are required weekly . • Reward/Penalties • Monetary fines in the amount of 5% of the direct and indirect costs of the contract.

  16. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Requirements (DOES) • First Source Program • Requirements Contracts $5 million and above – Shall attain the following worksite requirements: • 20% of journey worker hours by trade shall be performed by DC residents • 60% of apprentice hours by trade shall be performed by DC residents • 51% of skilled laborer hours by trade shall be performed by DC residents • 70% of common laborer hours shall be performed by DC residents • Monitoring • Monthly First Source Compliance Forms and certified payrolls • Reward/Penalties • Monetary fines of 5% of direct and indirect labor costs as redefined by the new First Source Act. • Failure to meet hiring requirement shall result in a monetary fine. • Two violations in ten-year period can lead to debarment or ineligibility for consideration in any DC government-assisted project.

  17. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Supports • CBE Financial Assistance & Capacity Building Program • About Us: City First is a mission-oriented community development bank and with our affiliates we address economic development challenges in the DC region. • Our Goal: Work closely with DGS and Hess Construction to help build capacity of CBEs with limited access to lines of credit to reach the next tier of performance. • Two-part CBE Support program: • Financial Assistance/Lines of Credit • Technical Assistance/Capacity Building Program

  18. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Supports • CBE Financial Assistance Program • Lines of credit from $100,000 up to $500,000, secured by contracts & receivables • Criteria: • 2 years in operations & 5 years relevant experience • 3 professional references, 2 years tax returns • HESS-approved subcontractor • Min. 650 credit score (of Borrower or Guarantor) • Application takes 4-6 weeks processing time • Lending Terms: • 1% loss reserve from borrower, 1.5% origination fee for City First and DC funding reserve program • Interest rate: 6% - well below market for factoring financing (typically 10 -18%)

  19. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL • Economic Inclusion Supports • CBE Technical Assistance (TA) Program • Targeted through pre-program survey of all participating CBEs • CBEs will receive individualized TA from experts in the field • 3 Key Components: • 1: Construction Management - Invoicing, Workforce Compliance (First-Source, Davis-Bacon), Bid-preparation • 2: Financial Management - Procurement contract accounting, Cash Management, Managing banking relationships, Developing accurate and timely financial statements • 3: General Business Management - Bookkeeping, Accounting, Hiring and Payroll, Record keeping, Regulatory compliance

  20. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL ? QUESTIONS

  21. WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL Networking Opportunity

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