PURPOSE
The purpose of this procedure is to provide a guideline for determining when to use a consultant for a Bureau project or activity. As a general rule, the Bureau of Engineering (BOE) attempts to perform the bulk of its services with internal resources. However, there are instances when it is more appropriate that consultants be used, namely, when it is more feasible or cost-effective to use consultants.
REFERENCES
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RESPONSIBILITIES
Project Manager (PM): The PM is responsible for preparing an analysis of whether sufficient staff exists to perform the required work in the timeframe in which it is needed. Once it is decided to use consultants, the PM is also responsible for filing the Notification of Intent to Contract (City Staff only) with the CAO’s Employee Relations Division (for both new contracts and amendments). The PM is also responsible for following the Charter Section 1022 Determination Procedures (City Staff only) and for obtaining the CAO’s determination on whether it is more feasible or more economical to contract the work rather than utilizing City staff.
Personal Services Contracts Section, Project Award & Control Division (PAC): This Section is responsible for keeping current on the City’s personal services contracting requirements. Standard documents for a request for proposal (RFP), request for qualifications (RFQ), City contracting requirements, personal services contracts, amendments, and board reports may be requested from this Section.
Program Manager: The Program Manager is responsible for deciding whether or not the Bureau should seek approval to use consultants and for securing the City Engineer’s concurrence.
City Engineer: The City Engineer must approve all requests for consultants.
City Engineer: The City Engineer must approve all requests for consultants.
Employee Relations Division of the CAO: Departments wishing to utilize consultants to perform work must submit a Notification of Intent to Contract (City Staff only) to the Clearinghouse administered by the Employee Relations Division of the CAO. This also applies to amendments.
Personnel Department: Under Charter Section 1022, the Personnel Department reviews the Bureau’s request to use consultants by reviewing the information contained in the Personnel Department 1022 Information form (City Staff only). The Personnel Department determines if City employees can or cannot perform the work and issues their decision on the Contract Review Report.
City Administrative Officer (CAO): The CAO, upon receipt of the Request for 1022 Determination by the CAO (City staff only) document from the PM, is responsible for the review and consent of the Bureau’s request to use consultants based on cost effectiveness or feasibility. The CAO’s determination will be included in the Report from the Office of the City Administrative Officer – Charter Section 1022 Determination (City Staff only).
PROCEDURE
Consultants are most commonly used when additional capital activity is planned for a time period when adequate staff is not available to perform the required work. This often happens when large projects or programs are created or when midyear work is directed to the Bureau that must be completed immediately.
When the Bureau identifies a need to use consultants, the following procedures will provide guidance. Additionally, the Contracts Section of PAC may be contacted for assistance.
Section 1022 of the City Charter codifies the underlying principle that consultant use is only allowable when it is more economical or feasible to do so. The Bureau’s use of consultants is typically driven by the feasibility issue. In general, it is more feasible to use consultants if:
The Bureau or other City Department has an insufficient number of qualified people available to perform a certain function when it is needed; or
The Bureau lacks the specific technical expertise required and is unable to gain that knowledge within the required timeframe; or
The work is of limited scope or intermittent nature and it is unlikely that the Bureau would be able to continue the employment of persons hired for the project.
CAO’s Clearinghouse of Contracting Proposals
Council policy requires that departments wishing to utilize consultants to perform work must first submit a Notification of Intent to Contract (City Staff only) with the Clearinghouse, administered by the Employee Relations Division of the CAO. The CAO enters the information into the Contract Clearinghouse at http://caodocs.ci.la.ca.us/Intent2Contract/CurrentIntentToContract.pdf (City Staff only). The CAO emails this information weekly to all labor unions.
The procedural rules for compliance with the Council’s policy regarding Consultant Contracting are published by the CAO. In simplified form, the procedures require the following actions:
The PM must file the required form before beginning the formal contracting process (applies to both new contracts and amendments).
The PM must include the required information in the form, such as Activity to be Performed, Estimated Starting Date, and Duration of the Contract.
The Notification of Intent to Contract (City Staff only) must be signed by the Program Manager.
In addition, per Board of Public Works’ policy (City Staff only) adopted December 24, 2002, the PM is to brief the Bureau’s lead and backup Commissioners.
Personnel Contract Review
After a decision has been made to contract the proposed work and the Notification of Intent to Contract form (City Staff only) has been submitted to the CAO, the PM must determine if a Charter Section 1022 determination is required. Contracts and contract amendments require a 1022 determination if the new contract has a labor component exceeding $25,000; the contract amendment would add a new labor component or increase the existing labor component by more than $25,000; or the original labor component of the contract was less than $25,000 and with an amendment will have a cumulative labor component of more than $25,000. The Bureau’s personal services contracts will normally require a Charter 1022 Determination.
The CAO publishes the procedures for compliance with Charter Section 1022. They include the following steps:
The PM is to complete the Personnel Department 1022 Information form (City Staff only). This form provides information on the type of work to be performed; whether internal staff is available and has the expertise to perform the work; whether staff could be hired to perform the work within the project’s schedule; and whether hired staff could be absorbed by the Bureau.
The Personnel Department reviews the information and determines that either City employees can or cannot perform the work. In response, Personnel issues the Personnel Department Contract Review Report, to the Bureau. A sample of the form is provided as Attachment 6.1-2.
If the Personnel Department found that City employees do not have the expertise to perform the work, the 1022 Determination process is complete. A Charter 1022 Determination from the CAO is not necessary.
If City employees have the expertise needed to perform the work, the Personnel Department will include, on the Personnel Department Contract Review Report, a list of other City Departments and job classifications that perform similar work. The PM is to contact these other City Departments to determine if their staff is available to perform the work in the time required.
If the City Departments indicate their staff cannot perform the work within the required time, the Bureau should request a Charter 1022 Determination from the CAO based upon feasibility. A feasibility determination is based upon (1) the project being of a limited duration and would likely result in employee layoffs at the completion of the project; or (2) time constraints require immediate staffing of the project; or (3) independent review of the work is needed and/or the contractor has proprietary knowledge of the City’s needs.
If the contacted City Departments indicate their employees can perform the work but the Bureau believes that it still may be more feasible to contract the work, the PM should request a Charter 1022 Determination by the CAO (City Staff only). The PM must provide a detailed explanation of why the other City Departments are not recommended to provide the service.
Use of Independent Contractors
According to City Charter Section 1022, the Council has the authority to determine if the City enters into contracts for the performance of work. As duly noted in the Charter, the Council may delegate this authority to departments and officers of the City. Consequently, each fiscal year, the adopted Budget Resolution from the Council delegates this oversight to the CAO and Personnel Departments.
In order to comply with City Charter Section 1022, the PM sends to the CAO, a Request for 1022 Determination by the CAO form (City Staff only), Personnel’s Contract Review Report, and the completed Department Contact Documentation form (City Staff only) indicating the City Departments contacted and the responses received. When submitting the Request for 1022 Determination form, the PM should note whether a feasibility justification or economic justification is being requested.
Feasibility – Resources to Perform the Work When Needed
The feasibility analysis should always be done prior to the cost-effectiveness analysis described below. The feasibility decision made within the Bureau is based on the PM’s analysis, with input from key Divisions, of whether or not the Bureau will have the required number of people with sufficient knowledge and background available to perform the work when it is needed.
Generally, the Work Program Resource Requirements (WPRR) methodology should be followed. The staffing resources should be estimated using the Labor Requirement Template; a sample is included as Attachment 6.1-1. Care should be taken to include all of the various types of resources required (Total Labor Need). The Total Labor Need should then be compared to the projected staff availability for that time period. The various support groups in the Bureau (Environmental, Real Estate, Survey, Geotechnical, Structural, Architectural, Mechanical/Electrical, Construction Management, etc.) should also be contacted to ensure that these groups can support the work at the appropriate time.
If it is determined that the Bureau or other City Department will have the appropriate staff to do the work, the Bureau will typically perform the work with internal personnel. However, if it is determined that the Bureau or other City Department does not have the required resources and/or expertise and there is ample time to procure the required consultants, then it is more feasible to utilize consultants. This analysis and recommendation should be prepared by the PM for review and approval by the Program Manager and City Engineer.
Cost-Effectiveness – Comparative Cost of Consultants Compared to City Staff
Even when the Bureau has determined that it is more feasible for City staff to do the work, the fact remains that the use of consultants might be more cost-effective. If this situation occurs, the Bureau’s Labor Requirement Templates (Attachment 6.1-1) should be used in estimating the Bureau’s labor costs.
If the analysis of comparative cost shows that consultant use is not more cost-effective, work should be assigned to a group within the Bureau. However, if this analysis indicates the work can be more economically performed by consultants, the PM should then inform the Program Manager, who will secure the City Engineer’s approval to proceed.
CAO Determination
The CAO analyzes the request and issues a Report from the Office of the City Administrative Officer, Charter Section 1022 Determination (City Staff only). If the CAO finds that it is more feasible or economical to contract the work, the Bureau may proceed with the contracting process. If the CAO finds that the proposed project does not meet the 1022 standard, City forces must perform the work and the contracting process stops.
It should be noted that the policy requires that the filings and determinations be started as early as possible in the formal contracting process and completed before requesting Board approval to distribute RFPs or RFQs.
RELATED PROCEDURES
LINKS / ATTACHMENTS
Links
CAO “Charter Section 1022 Determination” Procedures (City Staff Only)
Notification of Intent to Contract form (City Staff Only)
Personnel Department 1022 Information form (City Staff Only)
Request for 1022 Determination by the CAO form (City Staff Only)
Charter Section 1022 Determination - Department Contact Documentation form (City Staff Only)
Report From Office of the City Administrative Officer - Charter Section 1022 Determination (City Staff Only)
CAO Charter Section 1022 Determination Policy (City Staff Only)
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