Agenda 01/12/2016 Item #16E 4 Proposed Agenda Changes
Board of County Commissioners Meeting
January 12,2016
Move Item 16H4 to Item 10C: To provide information regarding North Collier Fire Control and
Rescue District cancelling the Inter-Local Agreement between Collier County and Big Corkscrew Fire
Control and Rescue District. (Commissioner Hiller's request)
Move Item 16E5 to Item 11D: Recommendation to retroactively authorize the use of contract 14-
6280 Fencing Installation and Repair for"lump sum"quoted projects to Carter Fence Company and
BUE,Inc.d/b/a/Gatekeepers/Gateswork and inform the Board of termination notices received from
both contractors. (Commissioner Henning and Commissioner Taylor's separate requests)
Move Item 16E4 to Item 11E:
Recommendation to reaffirm the continued use of
the industry's best practices of utilizing "lump
sum," "time and materials," a combination of both
price methodologies, and "unit price" for County
purchase orders and projects. (Commissioner
Taylor's request)
Time Certain Requests:
1/12/2016 16.E.4.
EXECUTIVE SUMMARY
Recommendation to reaffirm the continued use of the industry's best practices of utilizing "lump sum,"
"time and materials," a combination of both price methodologies, and "unit price" for County purchase
orders and projects.
OBJECTIVE: To reaffirm the business practices, price methodology, and authorization of payment for Collier
County projects.
CONSIDERATIONS: For more than a dozen years, the Board authorized (within their contracts) three
construction industry best pricing practices: "lump sum," "time and materials," or a combination of both. The
definitions and business practices have been:
Lump Sum (Fixed Price): a firm fixed total price offering for a project; the risks are transferred from the
County to the contractor; and, as a business practice there are no hourly or material invoices presented, rather,
the contractor must perform to the satisfaction of the County's project manager before payment for the fixed
price contract is authorized. Generally speaking, these contracts are predictable and cost certain, easy to
administer for the County and the Contractor, and foster higher levels of collaboration, and account for more
than fifty(50%)percent of public sector projects.
Time and Materials: the County agrees to pay the contractor for the amount of labor time spent by the
contractor's employees and subcontractors to perform the work (number of hours times hourly rate), and for
materials and equipment used in the project(cost of materials plus the contractor's mark up). This methodology
is generally used in projects in which it is not possible to accurately estimate the size of the project, or when it is
expected that the project requirements would most likely change. As a general business practice,these contracts
include back-up documentation of costs; invoices would include number of hours worked and billing rate by
position (and not company (or subcontractor) timekeeping or payroll records), material or equipment invoices,
and other reimbursable documentation for the project. Generally speaking, the County assumes the project risk,
the administration is more time consuming, and the County pays for the labor efforts and materials used to
complete the project, including changes due to unforeseen conditions.
Unit Price: the County agrees to pay a firm total fixed price (inclusive of all costs, including labor, materials,
equipment, overhead, etc.) for a repetitive product or service delivered (i.e. installation price per ton, delivery
price per package or carton, etc.). The invoice must identify the unit price and the number of units received (no
contractor inventory or cost verification required).
Historically, these practices, and the resultant pre-audit invoice processes, have remained consistent during the
past decade. Recently, on some "lump sum" projects (ex: contract 14-6307 General Contractors Services),
contractors have been asked to provide copies of all employees' hours worked, their hourly rates, and invoices
for materials and equipment used on the project. This may be in part due to a section in the contracts intended
for time and materials' accounting that does not clearly differentiate the two discreet billing and payment
methods. The recent interpretation has created confusion for contractors and project managers, and has delayed
the invoice payment process. By reaffirming and clarifying the procurement and payment options, staff,
vendors, and the Clerk's finance staff will be able to continue to do business as usual with certainty.
Staff requests that the Board reaffirms its acceptance of the definitions for "lump sum," "time and materials,"
and "unit price" contracts and the invoice business practices outlined above. Upon approval of this Executive
Summary, the above definitions and business processes will be retroactively incorporated into and made part of
existing purchase orders, projects and contracts; and, applied to any related invoices. Future solicitations and
contracts would reference these definitions and business practices.
FISCAL IMPACT: There is no fiscal impact associated with this Executive Summary.
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1/12/2016 16.E.4.
GROWTH MANAGEMENT IMPACT: There are no Growth Management Impacts associated with this
Executive Summary.
LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for
Board approval.—SRT
RECOMMENDATIONS: That the Board of County Commissioners reaffirms the retroactive and continued
use of the industry's best practices of utilizing "lump sum," "time and materials," a combination of both price
methodologies, and "unit price" for County purchase orders and projects so as to allow invoice processing and
payment by the Clerk's Finance staff to vendors for work satisfactorily performed.
Prepared by: Len Price, Department Head, Administrative Services
Joanne Markiewicz,Director,Procurement Services Division
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1/12/2016 16.E.4.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.4.
Item Summary: Recommendation to reaffirm the continued use of the construction
industry's best practices of utilizing"lump sum," "time and materials," a combination of both
price methodologies, and "unit price" for County projects.
Meeting Date: 1/12/2016
Prepared By
Name: MarkiewiczJoanne
Title: Division Director-Procurement Services,Procurement Services
12/18/2015 7:02:05 AM
Submitted by
Title: Division Director-Procurement Services,Procurement Services
Name: MarkiewiczJoanne
12/18/2015 7:02:06 AM
Approved By
Name: MarkiewiczJoanne
Title:Division Director-Procurement Services,Procurement Services
Date: 12/18/2015 7:08:03 AM
Name: TeachScott
Title: Deputy County Attorney, County Attorney
Date: 12/18/2015 7:13:02 AM
Name: PriceLen
Title: Department Head-Administrative Svc, Administrative Services Department
Date: 12/22/2015 4:17:22 PM
Name: IsacksonMark
Title: Division Director-Corp Fin&Mgmt Svc, Office of Management&Budget
Date: 12/23/2015 9:28:49 AM
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1/12/2016 16.E.4.
Name: KlatzkowJeff
Title:County Attorney,
Date: 12/28/2015 10:45:28 AM
Name: CasalanguidaNick
Title:Deputy County Manager, County Managers Office
Date: 12/29/2015 4:40:03 PM
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