Ballou High School Contractor Awareness Event Presentation

CONSTRUCTION CONTRACTORS CONSTRUCTION CONTRACTORS PROJECT AWARENESS EVENTPROJECT AWARENESS EVENT

NOVEMBER 29, 2012NOVEMBER 29, 20124PM – 6PM4PM – 6PM

Bowie Gridley Architects / Perkins + Will

WARD 8’s NEW FRANK W. BALLOU SENIOR HIGH SCHOOL

Introductions— Department of General Services (DGS)— Chiaramonte/HESS, A Joint Venture— Department of Employment Services (DOES)— Department of Small and Local Business

Development (DSLBD)— City First Bank

Bowie Gridley Architects / Perkins + Will


Agenda— Procurement Method

— Project Schedule

— Bidding Opportunities

— Economic Inclusion Requirements

Certified Business Enterprises (CBE) Requirements

Workforce Incentive Program (WIP)

Davis-Bacon

First Source Program

Apprenticeship Program

— Economic Inclusion Support

CBE Financial Assistance & Capacity Building Program


Procurement Method (Chiaramonte|Hess)

— Design-Build Delivery— Fast Track Methodology— Phased Bid Process


Project Schedule (Chiaramonte|Hess)


Project Schedule (Chiaramonte|Hess)


— Phase 1 - Jan 2013 – Summer 2014 Demolish Existing Football Stadium Construct New Ballou SHS

—Phase 2 – Summer 2014 – Winter 2014/2015 Demolish Existing Ballou SHS Construct New Parking and FB Stadium

Bidding Opportunities (Chiaramonte|Hess)

— Prime Bid Packages (Preliminary)


Bidding Opportunities (Chiaramonte|Hess)— CBE Subcontracting Opportunities


Procurement Timeline (Preliminary) (Chiaramonte|Hess)


— Dec. 3, 2012 – Dec. 14, 2012 Early Sitework Package

— Dec. 28, 2012 – Jan. 11, 2013 Concrete Package Steel Package

Glass Package Mech/Plb Package Electrical Package

— Feb. 05, 2013 – Feb.25, 2013 Remaining Trades

Economic Inclusion Requirements (DGS)

— Certified Business Enterprises Definition: A Certified Business Enterprise (CBE) is a business that is has been

certified by the Department of Small and Local Business Development (DSLBD) and: Maintains a principal office in the District (i.e. headquartered); Has demonstrated that the chief executive officer and highest level managerial

employees of the business maintain their offices and perform their managerial functions in the District;

Meets one of the four following standards:1. More than 50% of the assets, excluding bank accounts, are located in the District;2. More than 50% of the employees are residents of the District;3. The owners of more than 50% of the business enterprise are residents of the

District; or4. More than 50% of the total sales or other revenues are derived from transactions

in the District Is properly licensed under DC law; and Is subject to tax under DC law (Chapter 18 of Title 47)


— DGS Subcontracting Requirements DGS requires that 50% of all dollars spent on its projects be spent with businesses certified by

DSLBD as a CBE. DGS requires that each construction contract for which a certified business enterprise is

selected shall include a requirement that the business enterprise perform at least 35% of the contracting effort, with its own organization and resources and, if it subcontracts, 35% of the subcontracted effort shall be with certified business enterprises.

— DSLBD Joint Venture Certification A joint venture shall be eligible for certification with DSLBD if the joint venture

intends to submit a response to a District government issued solicitation in which the joint venture will provide goods to or perform services for the District, and has a member that owns a majority interest or minority interest in the joint venture business enterprise and meets the definition of a certified business enterprise. Once the District contract is awarded the Department shall not accept any additional applications for joint venture certification in connection with the particular District government solicitation issued.

Firms that desire to form JVs in response to contracting or subcontracting opportunities issued by the construction managers may continue to do so; however, the JV will not be certified by DSLBD.



— Workforce Incentive Program (WIP) The Workforce Incentive Program (WIP) was created in FY11 to increase

participation of District residents on project. The program is administered by DGS and includes all new capital construction projects. District resident workforce for service contracts and goods purchased are also tracked in DGS.

WIP incentivizes contractors and subcontractors to increase hiring of District residents to 35% or more of hours worked on a project by:

Providing the general contractor an incentive of up to 5 percent of its fee for achieving District-resident hiring targets established as part of its Guaranteed Maximum Price (GMP) for the project; and

Providing subcontractors an incentive payment equal to 10 percent of payrolls that are paid to District residents on the project.





Workforce Incentive Program (WIP)

Incentive Payments

1Candidates Referred to Subcontractor for

Hire.

2Subcontractor

Hires Unemployed District Residents.

3 Submit Weekly Certified Payrolls.


Economic Inclusion Requirements (DOES)— Davis-Bacon

Requirements The act covers all contracts over $2,000 which calls for the construction work

financed from federal and/or District funds under statutes containing Davis-Bacon provisions. All covered contracts must contain a wage determination issued by the Secretary of Labor.

Monitoring DOES monitors the Federal Davis-Bacon Law by reviewing the certified payrolls on

each District- funded construction project.

Reward/Penalties The Department of General Services (DGS) can withhold sufficient funds from

offending contractors to compensate underpaid employees; In addition, contractors and subcontractors can be held liable to the District for

liquidated damages; and/or A contractor can be debarred for violations for a three-year period.

Economic Inclusion Requirements (DOES)— Apprenticeship Program

Requirements All prime contractors and subcontractors performing any construction, renovation or information

technology work exceeding $500K in a single or cumulative contract in a 12-month period, must have a registered apprenticeship program with the DC Apprenticeship Council.

35% of all apprenticeable hours performed pursuant to apprenticeship program are required to be performed by District of Columbia residents.

Monitoring Certified payrolls which are required weekly . Reward/Penalties

Monetary fines in the amount of 5% of the direct and indirect costs of the contract.


Economic Inclusion Requirements (DOES)

— First Source Program Requirements

Contracts $5 million and above – Shall attain the following worksite requirements:

20% of journey worker hours by trade shall be performed by DC residents 60% of apprentice hours by trade shall be performed by DC residents 51% of skilled laborer hours by trade shall be performed by DC residents 70% of common laborer hours shall be performed by DC residents

Monitoring Monthly First Source Compliance Forms and certified payrolls

Reward/Penalties Monetary fines of 5% of direct and indirect labor costs as redefined by the new First Source

Act. Failure to meet hiring requirement shall result in a monetary fine. Two violations in ten-year period can lead to debarment or ineligibility for consideration in any

DC government-assisted project.



Economic Inclusion Supports

— CBE Financial Assistance & Capacity Building Program

About Us: City First is a mission-oriented community development bank and with our affiliates we address economic development challenges in the DC region.

Our Goal: Work closely with DGS and Hess Construction to help build capacity of CBEs with limited access to lines of credit to reach the next tier of performance.

Two-part CBE Support program: Financial Assistance/Lines of Credit Technical Assistance/Capacity Building Program


Economic Inclusion Supports — CBE Financial Assistance Program

Lines of credit from $100,000 up to $500,000, secured by contracts & receivables

Criteria: 2 years in operations & 5 years relevant experience 3 professional references, 2 years tax returns HESS-approved subcontractor Min. 650 credit score (of Borrower or Guarantor)

Application takes 4-6 weeks processing time

Lending Terms: 1% loss reserve from borrower, 1.5% origination fee for City First and DC funding

reserve program Interest rate: 6% - well below market for factoring financing (typically 10 -18%)


Economic Inclusion Supports— CBE Technical Assistance (TA) Program

Targeted through pre-program survey of all participating CBEs

CBEs will receive individualized TA from experts in the field

— 3 Key Components:

1: Construction Management - Invoicing, Workforce Compliance (First-Source, Davis-Bacon), Bid-preparation

2: Financial Management - Procurement contract accounting, Cash Management, Managing banking relationships, Developing accurate and timely financial statements

3: General Business Management - Bookkeeping, Accounting, Hiring and Payroll, Record keeping, Regulatory compliance

QUESTIONS


NETWORKING OPPORTUNITY


Ballou High School Contractor Awareness Event Presentation

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