Approve findings to authorize an exemption to the competitive bidding requirements and authorize the use of the alternative contracting method of Job Order Contracting for civil construction and general contracting construction services

The purpose of this Ordinance is to authorize a class exemption to use the alternative contracting method of Job Order Contracting (JOC) for civil construction and building alterations construction services. In order to authorize a class exemption, City Council must approve findings that support the use of an alternative procurement and contracting delivery method for the projects covered under the class exemption. The projects covered under this exemption will be projects between $5,000 and $1,000,000 and for routine civil construction and alterations projects including tenant improvements and remodeling work. JOC is a project delivery method for public improvements and repair/maintenance projects that establishes contracts with multiple contractors for individual categories of work where the pricing is established by a third-party consultant. Contractors respond to the solicitation by proposing an adjustment factor to the pre-established pricing to cover overhead, profit and other related costs. Once contracts are awarded, the bureaus using them can schedule projects out in advance using the pricing without having to go through a solicitation and contracting process for every job. This model is transparent, auditable and encourages high quality of work and collaboration between the City and the awarded contractors. A benefit to the contractors is that, provided they perform quality work, they can reasonably expect to continue to perform work in their category of work throughout the life of the contract. Being able to plan and forecast work through this method will allow the contractors to develop relationships with the City and understand the intricacies of administering a City contract. It should also allow them the ability to forecast resource planning and grow their capacity throughout the life of the contract. No revenues will be impacted by this Council action. This Council action does not change existing City policy.

There is no direct budgetary impact based on this Council action.

The City of Portland has a core goal and objective to increase opportunities for local small and disadvantaged firms. The subject exemption aligns with this goal and results in a significant public benefit because much of the work resulting from this exemption and the resulting solicitation will be performed by local small and disadvantaged firms, thus helping the awarded firms increase their capacity and develop strong working relationships with the City. It also provides the awarded firms experience working on City projects that they may not otherwise have if this exemption isn't approved. The following are other community benefits associated with this Council action: JOC saves time and money. Simplifies and expedites the procurement process and saves on administrative costs. More projects completed on time and on budget. The collaborative information sharing, detailed project scopes, and proven processes will improve the quality of the work and speed project delivery. Enhanced cost transparency given the predetermined and standardized unit prices that are based on local labor, material and equipment prices and are for the direct cost of construction. Each project cost is developed via line item estimates/costs from the unit prices yielding full transparency and auditability. Reduction in deferred maintenance backlog. More projects are completed simultaneously per year. Fewer change orders. Better communication improves project scope development and yields elimination of contractor-driven change orders. Long-term partnerships. Development of partnership relationships with contractors based on their performance and increases local contractor participation. No known person or group will be testifying.