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Consider approving the use of “Best Value” method of procurement of construction services for the SB1022 Classroom and Vocational Training Center project; and Authorize the use of the proposed criteria to ensure the selection is conducted in a fair and impartial manner
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
DEPARTMENTAL RECOMMENDATION:
The Department of General Services recommends that the Board of Supervisors:
1) Consider approving the use of “Best Value” method of procurement of construction services for the SB1022 Classroom and Vocational Training Center project (SB1022 Project) consistent with Public Contract Code (PCC) section 20155 et seq. (Attachment A);
2) Authorize the use of the proposed criteria to ensure the selection is conducted in a fair and impartial manner (Attachments B, C).
SUMMARY:
On May 13, 2016 the Board of Supervisors accepted a conditional grant award up to $23,037,000 in bond financing under the State’s SB1022 Adult Local Criminal Justice Facilities Construction Financing Program for the SB1022 Project, which will provide rehabilitation services to adult offenders at the County’s Claybank campus in Fairfield, and authorized staff to negotiate a Project Labor Agreement for the SB1022 Project, while delegating contractual signing authority to General Services Director and Sheriff for agreements pertaining to the SB1022 financing and project.
Solano County sponsored and supported SB762 (Wolk) which was chaptered into law as PCC sections 20155 - 20155.9 on October 8, 2015 to establish a pilot program for the Counties of Alameda, Los Angeles, Riverside, San Bernardino, San Diego, Solano, and Yuba in which the bidder may be selected on the basis of the best value to the County for construction projects in excess of one million dollars ($1,000,000). "Best value" means a procurement process whereby the selected bidder may be selected on the basis of objective criteria for evaluating the qualifications of bidders with the resulting selection representing the best combination of price and qualifications.
The Department of General Services recommends that the Board consider approving the use of this pilot program for the SB1022 Project and in doing so, adopt and publish procedures and required criteria associated with the pilot program.
FINANCIAL IMPACT:
In May 2014, the total project budget presented to the Board was $25.6 million, which included an appraised land value of $849,000. Since then, the land value has been reappraised at $1,075,900, raising the total project budget to $25.85 million. This amount includes the appraised land value, the County’s cash match (comprised of Public Facilities Fees and AB109 funds) and the State’s conditional grant award up to $23,037,000.
The County’s cash match and State’s conditional grant award remain unchanged in the increased budget. Under the SB1022 agreement, the State reimburses the County up to 90% of the cost of the project. The remaining 10% is funded by the County in the form of a combination of cash and in-kind contribution. Costs associated with Best Value project procurement and administration are included in the budget previously approved by the Board.
DISCUSSION:
SB1022 Project Status/Schedule
The base scope of the SB1022 project consists of approximately 39,340 square-feet of new building construction for two buildings containing classrooms, vocational training, administrative and support space and associated site improvements as described in the County’s proposal to the State, which is the basis of the conditional grant award.
The SB1022 Project will house programs that establish and/or expand rehabilitation programs for adult offenders, equip offenders with effective life skills including treatment for mental health needs, and prepare offenders for productive employment in order to reduce the recidivism rate among Solano County’s incarcerated population.
SB1022 construction documents, including project plans and specifications, are 95% complete. Pursuant to Penal Code section 6029, on September 18, 2016, the Board of State and Community Corrections determined that the construction documents for the SB1022 Project comply with State of California Title 24 of the California Code of Regulations. Final corrections and approvals of construction documents by the State Fire Marshal and by the County Department of Resource Management are anticipated in November 2016. Corresponding authorization to proceed with bidding the SB1022 Project is expected from State Department of Finance in December 2016, with the award of the construction contract anticipated to be presented to the Board of Supervisors in April 2017.
Best Value Procurement under PCC Section 20155 et seq. for the SB1022 Project
The successful bidder may be selected on the basis of the best value to the County. Per PCC Section 20155.1(a), “’Best value” means a procurement process whereby the selected bidder may be selected on the basis of objective criteria for evaluating the qualifications of bidders with the resulting selection representing the best combination of price and qualifications.” PCC further stipulates that an evaluation committee appointed by the County shall evaluate the qualifications of proposing bidders based solely upon the criteria set forth in the solicitation documents, and shall assign a score to each bid. The County’s evaluation committee will be determined by the SB1022 Project’s Steering Committee. To determine the best value contractor, the PCC also stipulates that the county shall divide each bidder's price by its qualifications score. The lowest resulting cost per quality point will represent the best value bid.
While the County could award the SB1022 construction contract on the basis of the lowest responsible bid price, awarding the SB1022 Project construction contract on the basis of best value will accomplish the objectives of expediting the completion of the project and providing features not achievable through awarding the contract on the basis of the lowest bid price, which include providing individually qualified and experienced contractor project team personnel dedicated specifically to this project.
To implement this selection method, PCC requires that the Board of Supervisors adopt and publish procedures and required criteria that ensure that all selections are conducted in a fair and impartial manner. Attachment B describes the proposed procedure and criteria for the SB1022 Project so that the selection complies with the Best Value requirements of the PCC.
Upon approval by the Board to proceed with Best Value method of procurement, the Department of General Services will initiate the prequalification of potential bidders pursuant to PCC section 20101 as required under PCC subsection 20155.3(c). Notice inviting bidders will be published in accordance with PCC 20125.
Staff will return in December with the final draft Request for Proposals and evaluation criteria, for approval by the Board, prior to publication at which point, proposals from the prequalified bidders will be solicited, staff will also be returning in December to request approval of a Project Labor Agreement for the Project to comply with PCC 20155.2 and the requirement for the use of skilled and trained workforce.
ALTERNATIVES:
The Board could choose not to authorize the use of “best value” delivery method and, instead, direct staff to proceed with a bid on the basis of the lowest responsible bid price. However, this is not consistent with the Board’s support for SB 762 and the articulated objectives of awarding a construction contract on the basis of best value.
OTHER AGENCY INVOLVEMENT:
The State of California Board of State and Community Corrections, California State Fire Marshal, State Department of General Services, State Department of Finance, and State Public Works Board are responsible for administering the State’s SB1022 Program.
Representatives of Solano Community College, Solano County Office of Education, Napa-Solano Building and Construction Trades Council, Pacific Gas & Electric, Fairfield-Suisun Sewer District, and the City of Fairfield have provided input pertaining to the design and/or vocational/education rehabilitation programs for the SB1022 Project.
The SB1022 Project Steering Committee is comprised of representatives from the Sheriff’s Office, County Administrators Office, County Counsel, Department of Resource Management, Department of Information Technology, and Department of General Services. Solano County Department of Human Resources/Risk Management Division has provided information pertaining to the potential use of an OCIP for the SB1022 Project.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION