To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: APPROVE Change Order No. 1 with Aztec Consultants, Inc. for Job Order Contract 026 and Change Order No. 1 with Mark Scott Construction, Inc. for Job Order Contract 027
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute Change Order No. 1 with Aztec Consultants, Inc. (Aztec) for Job Order Contract 026 (JOC 026) and Change Order No. 1 with Mark Scott Construction, Inc. (MSC) for Job Order Contract 027 (JOC 027) to increase the payment limit for each contract by $2,750,000 to a new payment limit of $5,750,000, as allowed by Public Contract Code 20128.5, Countywide.
FISCAL IMPACT:
100% Various Funds. Job orders under Aztec’s JOC 026 and MSC’s JOC 027 are only issued when there is an approved project and funding.
BACKGROUND:
The County’s Job Order Contracts (JOC) program has been a valuable construction project delivery tool since the program’s inception in 2015. Central to the JOC program is that JOC contracts are performance-based, and as contractors perform well, they will be more likely candidates for consideration for future job orders.
On April 9, 2024, the Board authorized Public Works to solicit bids for job order contracts with maximum values up to $5,750,000 each. On July 29, 2024, job order construction contracts (JOC 026 and JOC 027) were awarded to Aztec and MSC in amounts to total not more than $3,000,000 for each contract rather than $5,750,000 for each contract. The lesser value was chosen for the contracts as a strategy to help minimize the contractors’ bond expenses at least until such time that it became reasonably expectant that a larger contract value would be utilized.
At this time, taking into consideration work completed, started and anticipated, the current $3,000,000 limit on JOC 026 and JOC 027 is not sufficient. Change Order No. 1 for each contract will resolve the deficiency by increasing the value each contract to $5,750,000 in keeping with the Board’s original authorization for Public Works solicit bids for job order contracts with maximum values up to $5,750,000 each. The $5,750,000 value will also remain below the maximum limit established through Public Contract Code Section 20128.5.
CONSEQUENCE OF NEGATIVE ACTION:
If the Change Orders are not approved, the County will be limited in its ability to select the best suited job order contractor for appropriate County construction projects involving repair, remodeling and other repetitive work. Certain projects which are well-suited for job order contracting will likely be delayed while Public Works evaluates and implements alternate project delivery strategies.