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Agenda 03/11/2014 Item #16E3W 3/11/2014 16.E.3. EXECUTIVE SUMMARY Recommendation to approve the practice of providing an estimated project budget range in the construction project solicitation posting; and, whenever possible, to provide the average historical spend information on goods and services. O13JECTIVE: To update the Board on practices of other public agencies in Florida and provide standardization for construction solicitations. CONSIDERATIONS: The County has historically advertised, or distributed, during the competitive bidding process the general projected architect / engineer's estimate of the total project costs. At the February 11, 2014 meeting (Agenda Item 11A), the Board directed the County Manager to explore other County business practices relative to distributing the architect / engineer's projected estimate for a competitively solicited construction project. A survey was developed, and telephone inquiries were made to seventy -one (71) public agencies [including Collier County], along with Collier and Lee County Public Schools, the City of Naples and the City of Marco Island. Sixty -eight (68) of the seventy -one (71) agencies responded; which represents a ninety -six (96 %) percent return rate to the survey questions over a six (6) day period in mid - February 2014. A copy of the survey questions-and responses are attached. The practice of providing the project engineer /architect estimate, the budget or historical spend provides valuable information to the contractor, assisting with their: • Determination of whether to put the resources into the cost of the bidding /proposing; • Analysis of the scope of work requirements of the project; and, • Assessment of the project personnel resourcing, scheduling and availability within the firm and subcontractors. Staff recommends a uniform, consistent and transparent process by providing an estimated project budget range in the solicitation posting [when asked, staff will provide any other available estimates]. Further, staff recommends whenever possible, to provide the historical Packet Page -929- �'�..,��.C9slArilGi�Li'We� • ar !"�'�,cy� v n- �{"� r a. Always included in the 17 (or 25 %) 15 (or 22°x6) solicitation materials b. Only provided when 31 (or 45.6 %) 29 (or 42.6 %) asked by supplier community c. Never provided even 11 (or 16.2 %) 16 (or 23.5 %) when asked by supplier community d. Other (case by case 9 (or 13.2 %) 8 (or 11.9 %) basis The practice of providing the project engineer /architect estimate, the budget or historical spend provides valuable information to the contractor, assisting with their: • Determination of whether to put the resources into the cost of the bidding /proposing; • Analysis of the scope of work requirements of the project; and, • Assessment of the project personnel resourcing, scheduling and availability within the firm and subcontractors. Staff recommends a uniform, consistent and transparent process by providing an estimated project budget range in the solicitation posting [when asked, staff will provide any other available estimates]. Further, staff recommends whenever possible, to provide the historical Packet Page -929- 3/11/2014 16.E.3. spend on goods and services. Staff will incorporate the final approval practice into the Purchasing Manual. FISCAL IMPACT: There is no fiscal impact associated with this Executive Summary GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires a majority vote for Board approval. —SRT RECOMMENDATION: That the Board of County Commissioners approves the practice of providing an estimated project budget range in the construction project solicitation posting; and, whenever possible, to provide the average historical spend information on goods and services. PREPARED BY: Joanne Markiewicz, Director, Procurement Services Attachments: • . Survey Questions and Results by County Packet Page -930- 3/11/2014 16.E.3. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.E.16.E.3. Item Summary: Recommendation to approve the practice of providing an estimated project budget range in the solicitation posting; and, whenever possible, to provide the average historical spend on goods and services. Meeting Date: 3/11/2014 Prepared By Name: MarkiewiczJoanne Title: Manager - Procurement, Purchasing & General Services 2/20/2014 12:17:59 PM Submitted by Title: Manager - Procurement, Purchasing & General Services Name: Markiewiczioanne 2/20/2014 12:18:00 PM Approved By Name: MarkiewiczJoanne Title: Manager - Procurement, Purchasing & General Services Date: 2/20/2014 12:42:25 PM Name: pochopinpat Title: Administrative Assistant, Administrative Services Division Date: 2/20/2014 3:50:39 PM Name: PriceLen Title: Administrator - Administrative Services, Administrative Services Division Date: 2/20/2014 4:28:21 PM Name: KlatzkowJeff Title: County Attorney, Date: 2/28/2014 3:26:28 PM Packet Page -931- Name: KlatzkowJeff Title: County Attorney, Date: 2/28/2014 3:44:11 PM 3/11/2014 16.E.3. Name: PryorCheryl Title: Management/Budget Analyst, Senior, Office of Management & Budget Date: 3/3/2014 11:42:16 AM Name: OchsLeo Title: County Manager, County Managers Office Date: 3/4/2014 11:23:56 AM Packet Page -932- Collier County 3/11/2014 16.E.3. Purchasing Survey (February, 2014) Index Public Agencies When you advertise a construction ' bid for your agency, do you: a. Always provide b. Only provide when asked c. Never provide, or d. Other (explain) When you conduct any other.. solicitation for goods and services, do you: a. Always provide b. Only provide when asked c. Never provide, or d. Other (explain) 1 Alachua A A 2 Baker B B 3 Bay B B 4 Bradford B C 5 Brevard B B 6 Broward B B 7 Calhoun 8 Charlotte D: BUDGET ONLY A 9 Citrus B B 10 Clay C B 11 Collier A A 12 Columbia C C 13 DeSoto B B 14 Dixie B B 15 Duval 16 Escambia C B 17 Fla ler D B 18 Franklin C D - DO NOT BID GOODS / SERVICES 19 Gadsden B C 20 Gilchrist C C 21 Glades C C 22 Gulf C C 23 Hamilton B B 24 Hardee C C 25 Hendry B B 26 Hernando B B 27 Highlands B B 28 Hillsborough A A 29 Holmes B B 30 Indian River D: DEPARTMENT DECISION ON CASE BY CASE BASIS D: DEPARTMENT DECISION ON CASE BY CASE BASIS 31 Jackson B C 32 Jefferson C C 33 Lafayette 34 Lake D: RANGE PROVIDED D: PROVIDE NOT TO EXCEED 35 Lee A A 36 Leon A C 37 Lev D: NO PROJECTS RECENTLY D: ONLY ON GAS AND OIL 38 Liberty D - OUTSOURCED D 39 Madison D - OUTSOURCED D 40 Manatee B B 411 Marion A A Packet Page -933- Collier County 3/11/2014 16.E.3. Purchasing Survey (February, 2014) 42 Martin A A 43 Miami -Dade A C 44 Monroe C C 45 Nassau B B 46 Okaloosa B B 47 Okeechobee B B 48 Orange A C 49 Osceola B A 50 Palm Beach B A 51 Pasco A B 52 Pinellas A A 53 Polk A A 54 Putnam B B 55 Saint Johns B B 56 Saint Lucie B B 57 Santa Rosa B C 58 Sarasota A B .59 Seminole A A 60 Sumter D - SOMETIMES B 61 Suwanee C C 62 Taylor D: DOT COORDINATES CONSTRUCTION D: NOT APPLICABLE 63 Union A A 64 Volusia B B 65 Wakulla B B 66 Walton B B 67 Washin ton A D: PUBLIC RECORDS REQUEST ONLY 68 Collier Co. Public Schools B A 69 Lee Co. Public Schools B C 70 City of Marco Island A A 711 City of Naples B g Additional comments: Some public agencies provide the estimate to give direction to contractor and so that smaller contractors understand the size and scope to determine if they have the resources. 2 Contractors appreciate having the estimate so they can judge their resource allocation and determine whether they should invest the time into the estimating and solicitation process. Packet Page -934- 3/11/2014 16.E.3. Collier County Telephone Survey Distribution of Project Estimates in Competitive Bidding Process Hello, I'm [Brenda Reaves or Jeanne Carnes]. I am conducting a very brief survey for the Collier County Board of County Commissioners. Might you take a minute to respond to two very quick questions, or refer me to a staff member who may be able to help? If no: Thank you and I am sorry I interrupted your work. [Record their "not able to respond. "] If ves: 1. When you advertise a construction bid for your agency, do you: a. Always provide the architect / engineers project estimate in the advertisement or solicitation document. b. Only provide the architect / engineers project estimate when asked by the construction bidders during the solicitation process. c. Never provide the architect / engineers project estimate, even when asked. d. Other (please describe). 2. When you conduct any other solicitation for goods and services, do you: a. Always provide the historical spend in the advertisement or solicitation document. b. Only provide the historical spend when asked by the supplier community during the solicitation process. c. Never provide the historical spend to the supplier community. d. Other (please describe). Packet Page -935-