THE UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON ISSUED DATE: 05/04/01
LOGISTICS/ACQUISITION OPERATING PROCEDURES REVISED DATE: 04/22/08
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SECTION 2 PROCUREMENT
SUBJECT 2.55 CONSTRUCTION SERVICES
GENERAL INFORMATION
This procedure is issued to establish effective guidelines for the purchase of Construction Services consistent with best value principles, applicable laws and regulations, and best industry practices.
AUDIENCE
Applicable to all Procurement Staff and designated Satellite Buyers.
GUIDELINES
1. Requests for Construction Services
All requests for Construction Projects (e.g., new buildings, remodeling, electrical, HVAC, etc.) must be reviewed and approved by Facilities Operations and Management (FOAM). FOAM will initiate all orders for Construction Projects in coordination with the appointed Logistics/Acquisitions’ personnel assigned to process requests for Construction Services. Requests for Construction Services are classified, for procurement purposes, into Job-Order or Open-Market acquisitions.
2. Job-Order Acquisitions
Job-Order Acquisitions are procured under a Job-Order Contract (JOC), which is a Term and Pricing Agreement for “small”, routine Construction Projects valued at approximately $300,000 or less for each Project. This Contract is valid for no more than five (5) years.
A. Establishment of the Job Order Contract
The solicitation for this Contract shall be processed based on the sample bid documents issued by UT System’s Office of Facilities Planning and Construction and the rules established for selection and award (ref. UT System Regents Rules and Regulation; Series 80403 and OGC’s Construction Contracting Guidelines).
B. Procurements/Releases under the Job Order Contract ($0 – $300,000)
The process for Construction Projects valued at approximately $300,000 or less issued under the Job Order Contract are as follows:
· The FOAM Project Manager prepares a Scope Of Work document and submits it to the Job Order Contractor.
· The Job Order Contractor then submits a quote on the project. Once accepted by the Project Manager, a Requisition is created and sent to the Buyer along with the quote.
· The Buyer then reviews the quote and Requisition for compliance. If compliant, the Buyer then issues a Purchase Order and sends it to the Job Order Contractor, documenting the selection of JOC for this project in the purchasing file. If not compliant, the Buyer rejects the Requisition and quote back to the Project Manager explaining why the request is non-compliant.
B. Procurements/Releases under the Job Order Contract (Over $300,000)
· The FOAM Project Manager prepares a “Job Order Contract Scope of Work Approval Form for Projects Over $300,000” (ref. Attachment A) and submits it the Buyer. The Buyer then reviews the Form for compliance.
· If compliant, the Buyer then signs and forwards the Form to the Director, Facilities, Development & Construction and the Chief Purchasing Agent for review and approval. If the request is over $500,000, the Form is then forward over to the Vice President of Facilities and the Vice President for Finance for their review and approval. If not compliant or rejected at any level, the Buyer will then sent the Form back to the Project Manager explaining the reason for rejection.
· Once the Form is approved, the FOAM Project Manager prepares a Scope Of Work document and submits it to the Job Order Contractor.
· The Job Order Contractor then submits a quote on the project. Once accepted by the Project Manager, a Requisition is created and sent to the Buyer along with the quote for processing.
3. Open-Market Acquisitions
A. Bid and Award Process
In coordination with the Architect/Engineer selected for the Project (ref. Logistics/Acquisition Procedure 2.50; Professional Services), FOAM prepares the Bid Documents which include the plans, specification and terms and conditions. The Buyer then reviews the Bid Documents sends out a “Notice to Bidders”(ref. Attachment B) to all potential bidders. The “Notice to Bidders” informs the potential bidders of the project, the Architect selected for the Project, where they can get the complete Bid Documents, the time and place of the Pre-Bid Meeting, and the bid opening date. Additionally all Construction Projects will be advertised in or available for review with/at the following:
· AGC Plan Room
· McGraw Hill Companies/F.W. Dodge Division
· MSA/CMD Plan Room
· UTMB Facilities Operation and Management
· UTMB Logistics/Acquisition
Prior to solicitation, evaluation and award, all requests for Open-Market Construction Services that meet the requirements established under Logistics/Acquisition Procedure 2.33, “Procurement Review Process”, shall be reviewed by the responsible Procurement Supervisor and the HUB Program Coordinator.
The Bid Openings for all Construction Projects shall be held at the Facilities Operations Building, 14th and Strand, at 3:00 PM in accordance with Logistics/Acquisition Procedure 2.15; Opening Formal Written Bids/Proposals.
Once the bids are submitted, FOAM evaluates the bids and recommends an award. The Buyer then reviews and approves the recommendation (ref. Logistics/Acquisition Procedure 3.40; Contract Administration; Reviews and Audits and Logistics/Acquisition Procedure 5.20; HUB Subcontracting). After the recommendation is approved, a Construction Contract, prepared by FOAM and reviewed by the Buyer, is sent to the awarded firm. The awarded firm then signs the Contract and sends it back to FOAM for UTMB’s authorized signature. Once the Contract is fully executed, a “Notice to Proceed” (ref. Attachment C) is then sent by the Buyer to the awarded firm. The Buyer then issues a Purchase Order and sends it, along with the “Notice to Proceed” to the Contractor.
B. Bid, Performance and Payment Bonds
Payment and Performance Bonds are required for all Construction Projects exceeding $100,000. Bid Bonds are required for all Construction Projects exceeding $1,000,000, and must be submitted with all bids, as specified in the Bid Documents. All Bid Bonds are held by the Buyer in the Bid File. Once the Construction Contract is fully executed, all Bid Bonds are returned to the respective bidders.
The awarded firm must submit the Performance Bond and Payment Bond with their signed Construction Contract, as specified in the Contract. Both Performance Bond and Payment Bond are held by Logistics/Acquisition (ref. Logistics/Acquisition Procedure 3.30; Contract Security Documents). Once the Project is completed, the Contractor will inform the Bonding Company. The Bonding Company will then send Bond Completion Forms to the designated Facilities Development Project Manager. Once the forms are completed and approved by the Project Manager, the Buyer will forward the form to Logistics/Acquisition’s designated Security Document Coordinator to return the Bond Completion Forms along with the Performance Bond and Payment Bond to the Bonding Company.
4. Change Orders
If a change in specifications and/or additional work is needed to complete the Construction Project, Facilities Development will request a proposal from the Contractor. Once approved, Facilities Development will send a “Change Order” (ref. Attachment D) to the Buyer. The Buyer will then reviews the “Change Order” for compliance. If compliant, the Buyer will then issue a Change Order to the Purchase Order and amend the Contract as warranted. The Buyer will then send the revised Purchase Order, “Change Order”, and Contract Addendum, if warranted, to the Contractor. If not compliant, the Buyer will then sent the Form back to the Project Manager explaining the reason for rejection.
5. Records
All official records for Construction Project (e.g., Contracts, Bid Files, etc.) will be filled and stored by FOAM. A copy of the appropriate portions of these files shall be forwarded to Logistics/Acquisition’s for reference and tracking. All files will consist of and be kept in accordance to Logistics/Acquisition Procedure 3.10; Records Documentation and Retention Schedule.
EXCEPTIONS
There will be no exceptions unless by formal addendum to this procedure or other formal written exception by the Chief Purchasing Agent.
REFERENCES
Logistics/Acquisition Procedure 2.15 (Opening Formal Written Bids/Proposals)
Logistics/Acquisition Procedure 2.33 (Procurement Review Process)
Logistics/Acquisition Procedure 2.50 (Professional Services)
Logistics/Acquisition Procedure 3.10; (Records Documentation and Retention Schedule)
Logistics/Acquisition Procedure 3.30 (Contract Security Documents)
UT System Regents Rules and Regulation; Series 80403
Government Code; Chapter 2166
2.55 Construction Services
Approved: Jeffery Bonnardel, C.P.M.
Chief Purchasing Agent
Attachments:
A – Job Order Contract Scope of Work Approval Form For Projects Over $300,000
B – Notice to Bidders
C – Notice to Proceed
D – Change Order
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