PURPOSE
Award of a construction contract by the Board of Public Works triggers a series of events including the submittal of bonds and insurance by the Contractor, issuing the Notice to Proceed (NTP) by the Executive Officer of the Board of Public Works, and the start of construction by the Contractor. The contract with the selected Contractor is executed prior to issuing the NTP. The actual contract between the City and the Contractor consists of the following items: all documents from the bid proposal, including addenda and the items submitted by the Contractor; the General Conditions and General Requirements; the approved bonds and insurance; and the contract signed by the Board President and the Contractor. This Procedure describes guidelines for this process.
REFERENCES
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RESPONSIBILITIES
Project Award and Control Division (PAC) – Construction Contract Awards Unit: PAC, Construction Contract Awards Unit, is responsible for writing and processing the Board Reports to award construction projects. Award reports are Joint Board Reports signed by the Bureaus of Contract Administration (BCA) and Engineering (BOE). Projects are awarded when the Board of Public Works approves the award report at their regularly scheduled meetings. The Awards Unit works closely with the Project Manager (PM), BCA, Office of Contract Compliance (OCC), Board of Public Works, Office of Accounting, City Attorney, contractors bidding on the project, and the funding Bureaus and Departments to complete the award report. Recommendations to award the project are based on Public Contract Code requirements, City Charter and Administrative Code requirements, and past rulings by the Board of Public Works.
Project Manager (PM): If there is a significant deviation in the bids from the City Engineer (CE) Estimate, the PM is responsible for reviewing the Bid results for potential Change Orders (CO) or claims, securing funds to successfully complete the construction, resolving any outstanding issues that may hinder the start and completion of construction, and reviewing the draft award report. The PM is also responsible for briefing the designated Board of Public Works members on any issues involving the award prior to the scheduled Board date. The PM is expected to be present at the Board meeting when the awarding report is heard.
Bureau of Contract Administration, Office of Contract Compliance (BCA/OCC) and Special Research and Investigation Section (SRIS): BCA/OCC is responsible for reviewing the Business Inclusion Program outreach documentation. The OCC recommends that bidders that fail to comply with the outreach document requirements be declared to be non-responsive by the Board. Contracts are only awarded to responsive firms. BCA/OCC is also responsible for reviewing the submittals for Affirmative Action, Equal Benefits Ordinance, and Slavery Disclosure Ordinance requirements. SRIS is responsible for reviewing the bidder’s Contractor Responsibility Questionnaire, previous work records and investigating first time bidders.
Board of Public Works: The Board of Public Works awards construction contracts to the lowest responsive and responsible bidder at their regularly scheduled meetings.
City Attorney: The City Attorney for the Board of Public Works reviews bid protests and the recommendations made by the PAC and BCA for awarding the contract, provides legal advice prior to finalizing the award report, and acts as legal counsel to the Board at its meetings.
PROCEDURE
The following is a discussion of the concepts of responsive bids and responsible bidders:
Responsive Bids
The City of Los Angeles awards construction projects to the lowest responsive and responsible bidder. The responsiveness of a Bid is determined by evaluating the following factors:
Does the Contractor hold the necessary licenses to be awarded the project?
Did the Contractor submit the required bid bond or cashier's check with the bid?
Did the Contractor accurately complete all of the documents required in the Bid Package?
Do they have an approved Affirmative Action plan on file with the BCA/OCC?
Did they identify adequate subcontracting opportunities?
Did they submit the required outreach documentation to demonstrate that they made a "Good Faith Effort" to reach out to Subcontractors to meet the requirements of the City's Business Inclusion Program?
Contractor's bids are determined to be responsive if they meet all of the criteria listed above.
Responsible Bidders
Contractor Responsibility is a serious issue with the City of Los Angeles. The City will only enter into construction contracts with responsible bidders who have demonstrated the capacity and capability to successfully complete construction projects. They are required to demonstrate that they performed well on projects of similar size and scope as the project that they are bidding on. The BCA performs a “First Time Bidder's Analysis” (Attachment 14.4-1) on apparent low bidders who have not previously worked for the City. Bidders are required to complete a Responsibility Questionnaire and submit it along with their bid. The BCA uses this information as part of their evaluation. Contractors who are found to be non-responsible are barred from bidding on and being awarded a City contract for a period of five (5) years.
Contract Award
PAC’s Construction Contract Awards Unit, receives an analysis from the BCA/OCC and uses it as a basis to either recommend award of the project to the Low bidder or to the next responsive and responsible bidder. The Construction Contract Awards Unit also responds to protests received from bidders. These issues are cleared through the appropriate channels, and research is conducted to investigate previous Board actions or City Attorney opinions to determine the validity of the protest. PAC staff and the PM, if necessary, meet with the City Attorney to clarify any legal issues prior to finalizing the award report. The Construction Contract Awards Unit then receives input and signatures from all Bureaus and Departments with an interest in the project. Urgent projects are walked through the system to expedite the award.
The final Board Report is signed by the City Engineer and the Inspector of Public Works and is then scheduled for the earliest possible Board of Public Works meeting. The PM is required to brief the BOE’s assigned Board of Public Works Commissioner on any issues involving the award of the project before the Board considers the report at their regularly scheduled meetings.
RELATED PROCEDURES
Links / Attachments
Links
Responsibility Questionnaire (Construction Version) (Weblink broken, ask BOE for updated link)
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