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HomeMy WebLinkAboutSummary Form SRSECOND READING ORDINANCE j ` AGENDA ITEM SUMMARY FORM FILE ID. Date: 6/7/2016 Commission Meeting Date: 09/08/16 Law Department _ -- Requesting Department: Procurement District Impacted: All Type: ❑ Resolution ® Ordinance ❑ Emergency Ordinance ❑ Discussion Item ❑ Other Subject: Ordinance amending; Section 18-89 Contracts for Public Works or Improvements, to add a provision for the use of a Prequalification Pool of Contractors for City Of Miami construction projects, as a competitive sealed bidding methodology. Purpose of Item: An Ordinance of the Miami City Commission amending Chapter 18, Article III, the City of Miami Procurement Ordinance, more particularly by amending Section 18-89, entitled "Contracts for public works or improvements", subsection b) to add a provision for the use of a Prequalification Pool of Contractors for City Of Miami construction projects, as a competitive sealed bidding methodology. Further authorizing the approval of a Pilot Program for the establishment of a prequalification pool (Pool) of contactors for City of Miami construction projects for a period of two years, with a sunset provision, unless extended or codified by City Commission. This item was passed on first reading on July 14, 2016. Background Information: See attached. Budget Impact Analysis NO Is this item related to revenue? NO Is this item an expenditure? If so, please identify funding source below. General Account No: N/A Special Revenue Account No: N/A CITP Project No: N/A NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: N/A Maintenance Cost: N/A Total Fiscal Impact: N/A Final Approvals (SIGN AND DATE) CITP c N/A Grants N/A Risk Management N/A Procurement _ Dept. Director m -a Chief N CityManageiw Page 1 of 2 Backaround Information: Florida Statute (FS) 255.20, titled "Local bids and contracts for public construction works; specification of state -produced lumber", subsection (1) states "the county, municipality, special district, or other political subdivision may establish, by municipal or county ordinance or special district resolution, procedures for conducting the bidding process." The goal of the Pilot Program for the establishment of a prequalification pool (Pool) of contractors for City construction projects (Pilot Program), is to create an open Pool of experienced and pre -qualified Contractors for Vertical and Horizontal construction projects under a tiered system based on: a) discipline; and b) project dollar thresholds. The competitive, sealed, bidding methodology of a pre -qualification pool of contractors for construction projects is not stated in the City Code. Therefore, in accordance with the requirements of FS 255.20, it is requested that the City Commission approve an ordinance amending Section 18-89 of the City Code, entitled "Contracts for public works or improvements", to add this competitive sealed bidding methodology for construction projects. It is further requested that the City Commission approve this Pilot Program for a period of two (2) years, with a sunset provision unless extended or codified by City Commission. The benefits of establishing this Pool are three -fold. This process will: 1) Save time and money in the procurement process, through the issuance of Invitation to Quote (ITQ) (mini competitions) within the Pool when the need arises, which will be based solely on lowest price, since the Contractors in the Pool are already prequalified, as opposed to issuing individual open competitive solicitations for each project; 2) Prevent unqualified Contractors from participating in the bidding process, thus ensuring that the lowest bidder is already prequalified to perform the work; and 3) Reduce the risk of poor Contractor performance, through an annual evaluation and renewal of Pool members' qualifications, requirements, and their participation in the Pool. The Pilot Program will be in place for two (2) years commencing on the date that the Pool is established. Upon the conclusion of the two-year period, the Pilot Program shall automatically sunset, unless the City Commission extends the Pilot Program, or deterinines that the Pilot Program is a success, and recommends for its codification. Page 2 of 2