TRANSMITTAL LETTER FOR BOARD MEETING OF JULY 8, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Authorization to enter into an agreement with The Gordian Group, Inc., for professional services for the development and implementation of the job order contracting system, in an amount not to exceed $300,000.00, Accounts 101, 201, 401-VAR-VAR
Body
Dear Sir:
Approval is requested to enter into an agreement with The Gordian Group, Inc., for professional services for the development and implementation of the Job Order Contracting System in an amount not to exceed $300,000.00 for a one year period, with an option to extend for three additional one-year periods.
Job Order Contracting (JOC) is a unique competitively bid contracting process to provide routine construction services more rapidly and at a significantly lower cost than with the traditional system of construction contracting. This method will greatly reduce lead times, increase the ability to respond to changing workload priorities, simplify contract administration, and reduce costs.
The sole business focus of The Gordian Group, Inc., is the development and implementation of the JOC system for public agencies and institutions. The scope of work includes all consultant services, including the development of a specific unit price book, customized technical specifications, JOC contract terms and conditions, bid documents, marketing support, procurement assistance, development of execution procedures, staff training, contractor training, implementation assistance, monthly meetings, and follow-up technical and implementation support.
The Gordian Group, Inc., will provide experienced, full-time, on-site personnel who will be fully responsible for the complete JOC development and implementation program in accordance to the agreement. This project manager will report directly to the District and will be available to assist the District with any JOC-related issues as they arise.
The Gordian Group, Inc., will develop and implement the JOC system without any up-front risk or cost to the District. The Gordian Group, Inc., will be compensated on the basis of a variable licensing and technical support fee that would be tied to the District’s level of usage of the JOC process.
The licensing and technical support fee includes the development and institution of the JOC system and the use of copyrighted documents and software for the services stated above. The fee schedule is as follows:
Five percent (5%) of the value of work ordered through the JOC program up to and including six million dollars ($6,000,000.00).
One and ninety-five hundredths percent (1.95%) of the value of work ordered through the JOC program in excess of six million dollars ($6,000,000.00).
License fees shall be billable upon issuance of each job order issued to the JOC construction contractor(s). Payment will be made by direct voucher method from departments that are utilizing the JOC system.
Inasmuch as the services to be provided are professional in nature, it is recommended that the Director of Procurement and Materials Management be authorized to enter into an agreement with The Gordian Group, Inc., without advertising in accordance with Chapter 70ILCS 2605/11.4 of the Purchasing Act, in an amount not to exceed $300,000.00. Funds are available in Account No. 101, 201, 401-VAR-VAR.
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management, DAL:SEB:klv
Respectfully Submitted, Barbara J. McGowan, Chairman, Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for July 8, 2010