- laschools.org

Report
A/B LETTER PROCESS
CONDUCTED FOR PROJECT
EXECUTION
1
A/B LETTERS ARE…
PUBLIC PROJECT
CONSTRUCTION
SERVICES
• Under $15,000 maximum
• Painting and repainting,
alteration, improvement,
demolition, renovation,
erection, construction,
reconstruction and repair
• Public Contract Code
Section 20111 (b)
MAINTENANCE AND
EQUIPMENT REPAIR
• $83,400 maximum –
adjusted annually by the
State Superintendent of
Public Instruction
• Routine, recurring and
usual work
• Public Contract Code
Section 20115
2
DEFINITION
An A/B Letter Contract is an Informally Bid Contract as defined by California
Public Code (Public Contract Code 20111-20118.4).
"A" LETTERS
TIME AND
MATERIAL
FIXED PRICE "B"
LETTERS WITH
PREDETERMINED
SCOPES OF WORK
• Obtains the agreed rate for the time and materials to be charged,
a maximum amount not to be exceeded prior to starting work.
• When to use-Scope is not fully defined (i.e. plumbing projects)
• Establishes a total price for work to be performed.
• When to use- Scope is fully defined.
3
A/B LETTERS ARE NOT…
A change order to formal contracts
To be used for the procurement of goods
To be used to contract for professional services
(Architects, Engineers and those services
requiring specialized training like inspectors,
material testers, etc.)
To be used for painting projects on Maintenance
& Repair Projects (over $15,000)
4
SPECIAL CIRCUMSTANCES
It is the intent of the District to solicit 3 bids whenever
possible.
Exceptions are as follows:
 Maintaining integrity of existing warranty
 Emergency
 Sole Provider
 Cost Benefit to District
A Justification Memo must be approved prior to awarding
the contract.
5
CALIFORNIA CODE

Section 20111of the Public Contract codes establishes two dollar
thresholds for the type of expenditure:
1.
Public Project Construction Services
$0 to $14,999.99 (under $15,000)
2.
Maintenance & Equipment Repair
$15,000 to $83,400(as of 2013 subject to revision annually)

Bid splitting (awarding two informal contracts) to circumvent the dollar
threshold established by Public contract Codes (stated above) is a
prosecutable ILLEGAL activity (i.e ramp installation).

Contractor must have an appropriate active Contractor’s license.
6
A/B LETTER PROCEDURES
http://www.laschools.org/employee/
Login
Click on FSD Policies and Procedures & Go to 8.5
http://www.laschools.org/documents/download/maintenanc
e_&_operations/awms_documents/maximo_7.5/procuremen
t/Maximo_7.5_AB_Letter_Guide_-_9-97
13.docx.pdf?version_id=310468677
OVERVIEW
 Planning Phase
 Environmental (Asbestos and/or Lead)
 Planning Package
 Advertising
 Pre-Award
 Bid-Walk
 Bid & Award
 Verification of Lowest Responsive Bidder’s Documentation
 Contract/Award
 Documents for Approval
 Construction Documents
 Contract Closeout
8
PLANNING PHASE
 Coordinates with school on work access and hours
 Obtains Fair Cost Estimate (FCE)
 Obtains needed plans and specifications
 Obtains funding source from Program Controls. If
applicable, obtain enough funding to cover contract, ATU
and Inspection costs.
 OAR visits site, confirm findings and drafts scope of work
9
ENVIRONMENTAL
Documents
http://www.laschools.org/employee/
Login
Click on FSD Policies and Procedures & Go to 17.3 Forms Log
Request for Environmental Assessment
 ATU Approval Request to Advertise
10
PLANNING PACKAGE
 OAR PREPARES REQUEST
FOR CONTRACT INITIATION
(RCI) and submits to Regional
Representative.
Must be filled completely with
funding source and if applicable
bid walk date and time.
–
ATTACH FAIR COST ESTIMATE
–
ATTACH ATU APPROVAL, REQUEST
TO ADVERTISE
–
ATTACH SCOPE OF WORK
(Word document)
–
ATTACH PLOT PLAN, DRAWINGS
AND SPECIFICATION (if applicable)
–
CONFIRMATION OF CONTRACTOR
PHONE/E-MAIL BIDS, if applicable
11
ADVERTISING

Projects under $15,000
do not require advertising

OAR contacts at least three
(3) Safety Prequalified
Licensed contractors via
phone, fax or email

Prepares Bid form
(Confirmation of Contractor
Phone, Fax or E-mail Bids)
12
ADVERTISING
Regional representative advertises bid-walk
http://mo.laschools.org/fis/existing-facilities/m-and-o/bidwalks/
13
DOLLAR THRESHOLDS
ALL A/B Letter contracts require Safety Prequalification, Insurance and
License Verification. Additional documents are required when the
contract reaches certain thresholds.

Under $15,000 (Public Construction Project): NO additional documents.

$15,000 and Over (Maintenance & Repair Project):
•
•
•

$20,000 and Over and Bond Funded (Maintenance & Repair Project):
•

Performance Bond
Prevailing Wage
Weekly Certified Payroll
Project Stabilization Agreement –Letter of Assent
$30,000 and Over (Maintenance & Repair Project):
•
Division of Apprenticeship Standards
14
PRE-AWARD PRINT PACKAGE
 Regional representative receives RCI from OAR with required documentation, then enters
Work Order and Request for Quotation (RFQ) in Maximo.
 Generates the following documents for Advertised projects:
• BID ENVELOPE 
• BID FORM 
•
•
•
•
•
•
•
•
•
•
•
Sealed Bid Form (bids $15,000 and over)
NOTICE TO BIDDERS RE: INSURANCE & BOND REQUIREMENTS
NOTICE TO BIDDERS RE: SAFETY PREQUALIFICATIONS
CERTIFICATION OF INSURANCE FORM
PREVAILING WAGE CERTIFICATE (bids $15,000 and over)
CODE OF ETHICS POLICY
LEAD RESULTS (if applicable)
ASBESTOS RESULTS (if applicable)
PERFORMANCE BOND FORM (bids $15,000 and over)
PROJECT STABILIZATION AGREEMENT/LETTER OF ASSENT (if applicable)
BID-WALK SIGN IN SHEET
15
BID-WALK

Introduction and Background
a. Attendees Sign Bid-Walk Sign In Sheet.
b. Introductions (OAR, CPM, Labor Compliance, Contractor, etc.)

Safety and Health
a. Review Roles and Responsibilities for Site Safety.
b. Review Workplace Conduct
c. Alcoholic Beverages Are Not Permitted on the Project Site.
d. Contractor to Ensure Employees Are Dressed Properly and Not Use Profane Language.
e. No Tobacco Use is Allowed on OWNER Property.
f. Restrict Operations Areas and Traffic Control
g. Contractor Shall Provide Proper Flagmen when Impacting Street Traffic and Crossing Sidewalks, and Whenever Driving on Site.
h. Construction Debris Shall Not Accumulate and Shall be Removed Offsite Daily by Contractor.
i. Barricades to be Installed as Required to Insure the Safety of Pedestrian.
j. Contractor to Control and Mitigate Dust Caused by Construction Activity as Required by Contract Documents.

Environmental
a. Review CONTRACTOR’S Proposed Usage Of Hazardous Materials.
b. General Hazardous Material Handling.
c. Asbestos and Lead Reports; Coordination with Environmental Consultant (If applicable)
16
BID-WALK

Construction
a. Review Contract Scope of Work.
b. Temporary Facilities
•
Lay Down Area and Storage Areas
•
Trash Removal (offsite)
•
Site Access (including deliveries)
•
Parking Availability (On & Off-site, Restrictions, Etc.)
•
Housekeeping
•
Security
•
Contractor’s Normal Working Days
c. Coordinating Work Areas with Others
•
Coordination of Project Work with School Administrator
•
Coordination of Project Work with Other School Site Projects/Contractors
d. Telephones – DO NOT USE SCHOOL DISTRICT PHONES!!!!
e. Permits – Offsite Improvement Permit (BC Permit) & Inspection/Approval Requirements (if applicable)
f. Quality Control and Inspection

PSA Agreement (Contract > $20,000 and Bond Funded)
a. Review PSA Agreement regarding: Letter of Assent

Construction Schedule and Progress Reporting
a. Critical Work Sequencing
b. Proposed date for Construction start is
17
BID-WALK

Testing and Inspection
a. Request for Inspection by OAR.

Contractor Payments
a. Review of Invoice for Payment Process
b. Progress Payment Schedule and Progress Measurement (If progress payments apply)

Contract Management
a. Correspondence
•
Contractor Shall Send All Correspondence to the DISTRICT REPRESENTATIVE
b. Contract Compliance
•
Contractor/Subcontractors (if applicable) to Review Contract Documents Prior to Starting Work.
c. Claims Process
•
Contractor Must Submit Claims To: Los Angeles Unified School District
Procurement Administration
8525 Rex Road, 2nd Floor
Pico Rivera, CA 90660
18
BID & AWARD
19
BID & AWARD
 OAR submits Bid Sign in Sheet to
Regional Representative after Bid-Walk

Any Addition or Clarification of Scope
determined after the Bid-Walk must be
sent to all attendees within 24 hours of
the Bid-Walk. OAR prepares
Clarification of Scope and submits to
Regional Representative for distribution.
Note: If this addition or clarification
requires additional time to prepare
bids, please specify revised date and
time of bid due date, otherwise the
original bid due date stands.
20
BID & AWARD
Regional representative obtains bids from Bid box at specified Date and
Time. No late bids will be accepted.

Opens bid envelope with another District Representative as a
witness

Prepares Abstract of Bids for Sealed A&B-Letters

Verifies Contractor is Safety Prequalified

Submits Bid Abstract to OAR for approval of lowest bid.

Obtains OAR approval and proceeds to verify lowest responsive
bidder
21
LICENSE VERIFICATION
 California State License Board
•http://www.cslb.ca.gov/
•Click on “check status”
22
SAFETY PREQUALIFICATION LOG
 Safety Pre-Qualification
•http://www.laschools.org/c
ontractor/cc/pq/
Click on “Safety
Prequalification Log”
•Email
[email protected]
and request to be put on
weekly distribution list
• Regional representative
provides Regional OAR’s a
copy of the Safety
Prequalification log
•Must use current list at all
times for verification.
Contractor Safety
Prequalification Letter is
not acceptable unless it is
under a week old from
current list.
23
LIABILITY/AUTO INSURANCE
 Contractor’s Insurance
•http://www.ambest.com/
•Register, sign-on
•Under Member Services (help)
•Click on “Best’s Financial Strength Ratings”
 Must obtain Accord form under 30 days old for each
project.
24
WORKER’S COMPENSATION INSURANCE
25
PREVAILING WAGE
Prevailing Wage Certificate
Notice to Public Entity
Is Contract
$15,000
or More?
Yes
Weekly Certified Payroll
Performance Bond
26
PROJECT STABILIZATION AGREEMENT
Is Contract
BondFunded &
$20,000 or
More?
Yes
N
o
Not Required
27
DIVISION OF APPRENTICESHIP
STANDARDS
The PWC 100 allows an awarding body (LAUSD) to comply with
apprenticeship and CMU notification laws. An awarding body or body
awarding the contract means department, board, authority, officer or agent
awarding a contract for public work. In most cases the awarding body is a
unit of state or local government, such as a city, county, school district, water
district, special district, or a state agency.
Please register at https://www.dir.ca.gov/pwc100ext/index.html
This will allow you to enter the project information on behalf of the awarding
body (LAUSD).
28
DIVISION OF APPRENTICESHIP STANDARDS
29
DIVISION OF APPRENTICESHIP STANDARDS
30
PWC ELECTRONIC FORM
31
PWC 100 FORM CONTINUED…
32
PRE-AWARD PRINT PACKAGE

A/B LETTER CHECKLIST

BID TAB
Regional Representative updates dates and awarded vendor information in
Maximo.
 Obtains RCD approval signature on Bid Tab prior to executing System interface to
obtain SAP Purchase Order.

33
CONTRACT AWARD
Regional representative receives SAP Purchase Order and generates A/B-Letter
contract in Maximo.
 Regional representative emails contract to Contractor for signature.
 Regional representative receives signed contract from Contractor and obtains
Authorized District Designee final signature. (RCD, Deputy Director or Director of PEX)


Regional representative emails Final Executed Contract and Notice of Completion to
contractor.
34
JOB START MEETING AGENDA
35
LABOR COMPLIANCE JOB START CHECKLIST
Projects $15,000 and above (Maintenance and Equipment Repair Projects)
36
WEEKLY CERTIFIED PAYROLL
Projects $15,000 and above (Maintenance and Equipment Repair Projects)
37
FRINGE BENEFIT STATEMENT
Projects $15,000 and above (Maintenance and Equipment Repair Projects)
38
A/B LETTER
ADDITIONAL UNFORESEEN WORK
REQUIRED CONDITIONS

The three conditions that must be
met to change an A or B Letter:
• An unforeseen site condition must have
been discovered after the issuance of the
contract. This unforeseen condition must
be explained in detail in the memo.
• The work added or deleted to the
contract that changes the amount of the A
or B Letter must be deemed necessary to
complete the scope of work.
• The additional/lower cost of the A or B
Letter must be reasonable to accomplish
the completed project.
39
A/B LETTER
ADDITIONAL UNFORESEEN WORK
ADDITIONAL REQUIREMENTS
 Certain requirements may be triggered at specific threshold amounts after amendment. The
following requirements must be met when an A or B Letter is changed:
• If the contract was under the Public Project Construction Service (under $15,000) threshold ,
revised contract cannot exceed cumulative original and amendment more than $14,999.99.
• If the contract is under the Maintenance and Equipment Repair ($15,000 or more) threshold, the
following documents are required:
• Prevailing Wage Certificate
• Weekly Certified Payroll & Public Entity Form
• If the amount is $20,000 and Bond-Funded:
• The signed PSA Agreement is required
• If the amount is $30,000 or more:
• Inputting the project information into the Division of Labor Standards electronic payroll certified reporting
system.
40
CONTRACTOR INVOICE DOCUMENTATION



Contractor emails or mails Invoice, Notice of Completion and copy of contract to OAR for processing.
OAR date stamps invoice, approves invoice by stamping “Approved” and signs invoice.
Submits to Regional Representative for processing invoice in Maximo
41
NOTICE OF COMPLETION
42
PROCESS INVOICE IN MAXIMO
 Regional Representative obtains approved email from OAR.
•
•
•
•
•
•
Regional Representative print the PO Details Report in Maximo (obtain
appropriate signatures).
Regional Representative receives the PO in Maximo (receiving application).
Regional Representative creates Invoice Record in Maximo (invoice application),
Change Invoice status to PAID. – Triggers RC in SAP.
Regional Representative makes copy or scans invoice documentation prior to
submitting to Accounts Payable
Regional Representative Submit Invoice, copy of signed Notice of Completion,
copy of A/B-Letter contract and copy of signed PO Details Report to A/P for
payment.
Regional Representative submits Performance Evaluation via school mail to:
Angela Worshim-McLoud
Project Units Central
1500 E. 14th St.
Los Angeles, CA 90021
(213) 763-3036
43
CONTRACTOR PERFORMANCE
EVALUATION
Regional representative generates from Maximo
44
QUESTIONS
45

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