PROCUREMENT OF CONSTRUCTION AND RELATED ARCHITECT/ENGINEER CONSULTANT SERVICES
MC1-501 APPLICABILITY Article 5 of the Maricopa County Procurement Code defines the requirements
and authorities for Procurement and Contract activities associated with the design,
Construction, reconstruction and remodel of County facilities. This Article also
applies to the Procurement of various Professional Services required by the County
to meet its needs related to the design, Construction, reconstruction and remodel
of County facilities.
MC1-502 RESPONSIBILITIES AND AUTHORITY
The County Engineer shall be the individual appointed by the Board of
Supervisors to perform the duties set forth in A.R.S. §11-562. Upon adoption
of this Code by the Board of Supervisors, the County Engineer shall have
the following delegated authority:
Change Order authority that shall not exceed $1,000,000 for each
Contract unless specifically authorized by the Board for a specific
project or contract.
Authority to issue and Award limited scope construction contracts
up to the limits specified in A.R.S. §§ 34-201.C and D and 28-6713.B.
Authority to issue and Award simplified Construction Procurement
program Contracts
Carry out duties and responsibilities as from time to time may
be delegated by the Board of Supervisors.
Adopt policies and implement an Article 5 Procedures Manual,
consistent with this Code, amplifying or clarifying the Procurement
and management of all Article 5 Materials or Services.
The County Engineer shall provide the departmental Article 5 Procurement
Officer with the annual statutory Contracting limits pursuant to A.R.S.
§ 34-201.C and § 28-6713.B. Projects shall not be artificially divided
or fragmented to circumvent the statutorily defined limits.
MC1-503 DELEGATION OF ARTICLE 5 PROCUREMENT
AUTHORITY Ultimate contracting authority for the County resides with the Board of
Supervisors unless otherwise delegated. The County Engineer may delegate Article
5 Procurement authority to County Governmental Units for the purpose of executing
Article 5 Procurements.
MC1-504 TYPES OF ARTICLE 5 PROCUREMENT
Titles 34 and 41 of the Arizona Revised Statutes authorizes the County
to conduct several types of Construction and Professional Service Procurements.
These Procurements are: Limited Scope Construction Procurement, Simplified
Construction Procurement, Design-Bid-Build, Design-Build, Construction-Manager-At-Risk,
and Job-Order Contracting. In addition, Title 28 of the Arizona Revised
Statutes authorizes the County Department of Transportation to conduct
the equivalent of the Title 34 Design-Bid-Build process. Procedures about
implementation of each of these Procurement methods are included in the
Article 5 Procedures Manual. A brief description of each Article 5 Procurement
method is as follows:
Limited Scope Construction Procurement - Statutory dollar limited
Construction with a simplified Bid process. Contracts are Awarded
by the County Engineer or as delegated by the County Engineer.
Simplified Construction Procurement Program - Limited to $100,000
including all Change Orders subsequent to Award. Invitations for
Bids shall be sent to Contractors listed on an annually updated
Construction Contractor register. The Contracts are Awarded by
the County Engineer or as delegated by the County Engineer.
Design-Bid-Build - The County's Procurement method in which sequentially
a consultant under one Contract designs a project, the project
is publicly Bid, and the lowest Responsible and Responsive Bidder
constructs the project under a second and separate Contract. There
is a shorter procedure for Contracts under $250,000. Contracts
with a value of $250,000 or less may be awarded by the County
Engineer. Other Contracts are Awarded by the Board of Supervisors.
Design-Build - A Procurement method where one Contract is Awarded
for both the design and Construction of a project. Design is normally
accomplished prior to Construction but, design and Construction
may occur simultaneously. The Contract is Awarded by the Board
of Supervisors.
Construction-Manager-At-Risk - A Procurement method where two
Contracts are Awarded for the design and the Construction of a
project. Design and Construction may occur sequentially or concurrently.
The Contracts are Awarded by the Board of Supervisors.
Job-Order-Contracting - This type of Contract is basically an
"on-call" Construction Contract. This type Contract is limited
to five years by state statute. The Contract is Awarded by the
Board of Supervisors.
NOTE: Except for the Title 28 authority, three (subparagraphs 4, 5 and
6) Procurement processes have a sunset of June 30, 2010. This means that
no Contract may be executed after June 30, 2010. Services under Contract
as of June 30, 2010 may continue. If a contract is executed for construction
services on or before June 30, 2010, construction services under the contract
may be rendered in whole or in part after June 30, 2010.
Limited Scope Construction Procurement
The Board of Supervisors authorizes the County Engineer pursuant
to A.R.S. § 11-562 to approve Construction Contracts issued in
accordance with this Section.
The following procedures will be used to implement Limited Scope
Construction Procurements:
Prepare specifications and scope of work. The scope of
work shall be written in sufficient detail to enable a
Contractor to submit a written response for the described
work. The scope of work may include drawings, sketches,
job project coordination requirements or other data that
would affect the price. The scope of work may also require
a Contractor to subcontract a minor portion of the project
with a consultant to prepare drawings or other documents.
Prepare a cost estimate for the scope of work in compliance
with A.R.S. § 34-201 et seq. and this Code.
Prepare a Request for Quotation (RFQ) that lists the
date, time and location for receipt of sealed written
responses. The RFQ will be on a form approved by the County
Engineer.
Responses to an RFQ will be solicited in accordance with
the following guidelines. A no-bid response shall constitutes
a response:
For work of a nominal value of $1,000.00 or less,
one written response is required.
For work greater than $1,000.00 but less than
$5,000.00, two written responses are required.
For work greater than $5,000.00 but less than
the statutory ceiling, (A.R.S. § 34-201.C and
§ 28-6713. B), three written responses are required.
Respondents must submit their Offers as specified in
the Requests For Quotation. Responses received after the
due date and time or at the wrong location shall be non-responsive
and will be returned to the Respondent unopened.
Award of the Contract shall be made by the County Engineer
and shall be made to the lowest priced Responsive and
Responsible Respondent.
Should changes in the scope of work be necessary after
the Award they shall be described in a Change Order on
an approved form. The Change Order shall be signed by
the Department Manager and approved by the County Engineer.
The initial Contract shall direct the Contractor not to
begin work as the result of any change until receipt of
a written approved Change Order.
Payment for work performed, should when practical, be
made in one lump sum. Payment will be made within 45 days
of the request for payment after final County acceptance.
If the Contract period exceeds two months, the Contractor
may request a partial payment. (In compliance with standard
partial payment provisions).
Simplified Construction Procurement Program
A.R.S. § 41-2535.D shall be formally adopted for Article 5 Procurement
as set forth herein. A Procurement involving Construction not
exceeding $100,000 may be made pursuant to rules adopted by the
County Engineer in accordance with this section. At a minimum
the rules shall require:
A list be maintained of persons who desire to receive
Solicitations to Bid on Construction projects to which
additions shall be permitted throughout the year.
The list of Persons be available for public inspection.
Agreements for Construction be on forms approved by the
County Engineer.
A Performance Bond and a Payment Bond as required by
A.R.S. § 41-2574 be provided for contracts for Construction
by Contractors.
All information submitted by Bidders pursuant to this
Section be held confidential according to A.R.S. § 41-2533,
Subsection D.
All Bids for Construction be opened at a public opening.
All Persons desiring to submit Bids be treated equitably
and the information related to each project be available
to all eligible Persons.
Competition for Construction projects under the simplified
Construction Procurement program be encouraged to the
maximum extent possible.
Award of the Contract shalll be made by the County Engineer
and shall be made to the lowest priced Responsive and
Responsible Respondent.
Register of Prequalified Contractors
The County Engineer may maintain a register of prequalified Contractors
in accordance with the Article 5 Procedures Manual, generally
following the procedures outlined in A.R.S. § 41-2541.
Design-Bid-Build.
In this process, a design consultant is selected on the basis
of qualifications and a fee for the Professional Services is negotiated.
Once the design is completed, the project is advertised for Bid.
The Construction Contract is Awarded to the lowest Responsible
and Responsive Bidder. In determining the lowest responsible bidder
for horizontal construction, a County Department may consider
the time of completion proposed by the bidder if the County Department
determines that this procedure will serve the public interest
by providing a substantial fiscal benefit or that the use of the
traditional awarding of contracts is not practicable for meeting
desired construction standards or delivery schedules. The formula
for considering the time of completion must be specifically stated
in the bidding information and approved by the County Engineer.
Except for the Maricopa County Department of Transportation whose
time of completion factor is limited to five projects, all other
County departments have unlimited projects. (ARS 28-6713.C.)
Any County Department designated as an Article 5 Procurement
department by the County Engineer may use this Procurement method.
Direct selection of Professional Services to be used in Article
5 Procurement is authorized for design work in design-bid-build
procedures not to exceed $100,000.
Specific, mandatory Design-Bid-Build procedures are contained
in the Article 5 Procedures Manual.
Design-Build.
A qualification-based selection method. Authority for Design-Build
differs by type of Construction. Specific, mandatory procedures
are contained in the Article 5 Procedures Manual.
The Design-Build Procurement is a qualification-based selection
process that produces a short list of qualified Respondents. Negotiations
are initiated with the highest qualified Respondent or a Request
for Proposals is sent to all the Respondents listed on the short
list.
For each project for horizontal construction under a design-build
construction services contract, the licensed contractor performing
the contract shall perform, with the contractor’s own organization,
construction work that amounts to not less than forty-five per
cent of the total contract price for construction. For purposes
of this paragraph, the total contract price for construction does
not include the cost of preconstruction services, design services
or any other related services for the cost to procure any right-of-way
or other cost of condemnation.
Construction-Manager-At-Risk.
A qualification-based selection method that will result in multiple
Contracts for the project. Authority for Construction-Manager-At-Risk
differs by type of Construction. Specific, mandatory procedures
are contained in the Article 5 Procedures Manual.
Construction-Manager-At-Risk Procurement is a qualification-based
selection process that produces a short list of qualified Respondents.
Negotiations are initiated with the highest qualified Respondent
or a Request for Proposals is sent to all the Respondents listed
on the short list.
For each project for horizontal construction under a construction-manager-at-risk
construction services contract, the licensed contractor performing
the contract shall perform, with the contractor’s own organization,
construction work that amounts to not less than forty-five per
cent of the total contract price for construction. For purposes
of this paragraph, the total contract price for construction does
not include the cost of preconstruction services, design services
or any other related services for the cost to procure any right-of-way
or other cost of condemnation.
Job-Order-Contracting.
This Procurement method is a qualification-based process than
may include design services and is for "on-call" Construction
capability. This type service may be procured for up to five years.
If the Contract will allow renewal/extension, the provisions for
and the conditions of the renewal/extension must be included in
the solicitation.
2. Specific, mandatory procedures are contained in the Article
5 Procedures Manual. The single maximum value of a work assignment
issued under this procedure is $1,000,000 (per state statute).
The maximum yearly Contract value of a Job-Order-Contract is $3,000,000.
For the purposes of this sub-paragraph, yearly means the twelve
months subsequent to the Award of the Contract.
Procurement Of Consultant Services Other Than Architect, Landscape Architect,
Assayer, Geologist, and Land Surveyor Consultants
This section applies to consultants other than those listed in
A.R.S. 32-101. This list includes but is not limited to hydrologists,
appraisers and archaeologists.
Selection of consultants or Professional Services required during
the process of Construction of County facilities and structures
are to be made in accordance with procedures contained in the
Article 5 Procedures Manual.
MC1-505 REGISTER OF QUALIFIED CONSULTANTS
The County Engineer will maintain a register of consultants that have expressed
an interest in performing work for the County and have provided evidence of their
professional qualifications for such work. The County Engineer will notify each
consultant listed on the electronic register annually of their status and invite
updating of their professional qualifications. In addition to publication in the
official newspaper of the County, a public advertisement may be placed in a major
newspaper of general circulation in the Phoenix area inviting consultants to apply
for inclusion on the Agency consultant register. The electronic register may be
categorized to reflect the consultant's primary field of expertise. The County’s
process for updating the register is further explained in the Maricopa County
Article 5 Procedures Manual. Consultants may be removed from the register in accordance
with Article 9 of this code.MC1-506 SOLE
SOURCE PROCUREMENT Except for Direct Select procurement,
if the need for a sole source Procurement should arise on a Construction project
or to obtain a consultant required for an Article 5 Procurement, the County Engineer
shall have the authority to approve sole source Procurements in accordance with
MC1-342, 343, 344.
MC1-507 EMERGENCY PROCUREMENT Emergency Procurement shall be performed in accordance with MC1-345 and
346.
MC1-508 PUBLIC NOTICE
Construction Procurement with a value greater than the amount stipulated in A.R.S.
§§ 34-201 or 28-6713 shall be advertised in accordance with A.R.S. §§ 39-204 and
28-6713. The advertisement shall include a description of the project, location
of the work, requirements and location to obtain a Bid package, cost range of
project, date of pre-Bid and site tour (if any), County contact person, cost to
obtain plans and specification, MWBE goals (if any), and Bid opening date and
location. If there is a mandatory pre-Bid meeting and/or site tour, the date,
time and location must be included in the advertisement.
MC1-509 ADDENDA
Clarifications or changes to the Solicitations made in response
to Respondent question(s) shall be transmitted to all prospective Respondents
by an addendum. The addendum shall document all changes or revisions to
the Solicitation and shall include at a minimum the following information:
Number of addendum, title and Solicitation number of the
project;
Indication of a revised or unchanged Bid opening date;
and
Reminder that acknowledgment of receipt of the addendum
on Bids is required for a Responsive Bid.
An addendum shall be issued within a reasonable time before Bid
opening to allow prospective Respondents time in which to prepare their
Bids. If, in the judgment of the Article 5 Procurement Officer, the date
and time set for Bid opening does not permit sufficient time for Bid preparation,
the date and time for the Bid opening will be extended in the addendum.
MC1-510 MISTAKES IN BIDS If a Respondent alleges a mistake in its Bid, the Article 5 Procurement
Officer shall require the Respondent to submit within a reasonable time, not to
exceed 24 hours from Bid opening, the original estimating documents along with
any other price development documents and information to verify said mistake.
In addition to this requirement, mistakes in Bids shall be handled in accordance
with MC1-322.
MC1-511 BOND REQUIREMENTS
Bid Security
As a guarantee that the Contractor will enter into a Contract
to perform the Proposal in accordance with the plans and Specifications,
Bid security shall be required for all Competitive Sealed Bidding/Proposals
for Construction if the price is estimated to exceed the amount
established by A.R.S. § 41-2535. Bid security shall be a certified
check, cashier's check or surety Bond for ten per cent of the
amount of the Bid for Design-Bid-Build, for ten percent of the
Construction expenses in a Design-Build Proposal, or ten percent
of the estimated first year Construction costs of a Job-Order-Contracting
Proposal. Nothing in this section prevents a County Governmental
Unit from requiring such Bid security in relation to any Construction
Contract. The surety Bond shall be executed and furnished as required
by Title 34, Chapter 2, of the Arizona Revised Code and the conditions
and provisions of the surety Bond regarding the surety's obligations
shall follow the form required by A.R.S. §34-201, subsection A,
paragraph 3. For Design-Build and Job-Order Contracting, the surety
Bond shall be executed and furnished as required by Title 34,
Chapter 6, of the Arizona Revised Code and the conditions and
provisions of the surety Bond regarding the surety's obligations
shall follow the form required by A.R.S. §34-606, subsection D
If the Invitation For Bids/Competitive Sealed Proposals requires
security, noncompliance requires that the Bid/Proposal be rejected
unless, pursuant to rules, it is determined that the Bid fails
to comply in a non-substantial manner with the security requirements.
After the Bids/Proposals are opened, they are irrevocable for
the period specified in the Invitation For Bids/Proposals, except
as provided in A.R.S. § 41-2533, subsection F. If a Respondent
is permitted to withdraw its Bid/Proposal before Award, no action
may be had against the Respondent or the Bid security.
An annual or one-time surety Bond executed by a surety company
or companies holding a certificate of authority to transact surety
business in this state issued by the Director of the Department
of Insurance pursuant to Title 20, Chapter 2, Article 1, and in
a form prescribed by A.R.S. § 41-2573 and R2-7-505; or a certified
or cashier's check shall be acceptable Bid security.
Non-Substantial Failure to Comply with Bid Security
The Article 5 Procurement Officer may determine that noncompliance of
Bid security is non-substantial if:
Only one Bid/Proposal is received and there is not sufficient
time to rebid; or
The amount of the Bid/Proposal security submitted, although less
than the amount required by the Invitation For Bids, is equal
to, or greater than the difference between the apparent low Bid
and the next higher acceptable Bid; or
The Bid/Proposal security is inadequate as a result of correcting
or modifying a Bid in accordance with MC1-322 (Mistakes in Bids),
if the Respondent increases the amount of security to required
limits within two days after notification.
Performance and Payment Bonds
Performance and Payment Bonds are required for all Construction
Contracts. Specific bond requirement, by Contract type, are included
in the Article 5 Procedures Manual.
If the Contractor fails to provide the required Performance and/or
Payment Bonds within the time specified by the Contract, the Bid
shall be rejected, Bid security forfeited, and the Contract Awarded
to the next lowest Responsive, Responsible Respondent.
Performance Bonds are to be submitted to the County executed
by a surety company holding a certificate of authority to transact
surety business in this state issued by the Director of the Department
of Insurance in the amount and for the duration specified in the
Contract.
Payment Bonds are to be submitted to the County, executed by
a surety company holding a certificate of authority to transact
surety business in this state issued by the Director of the Department
of Insurance for the protection of all Persons supplying labor
and Material to the Contractor or its subcontractors for the performance
of the work required by the Contract. The Bond shall be in the
amount specified in the Contract.
The Performance Bond and Payment Bond shall be delivered by the
Contractor to the County within the time limits set forth in the
solicitation. If the Contractor fails to deliver the required
Performance or Payment Bond, the Contractor's Bid shall be rejected,
its Bid security shall be enforced, and Award of the Contract
made to the next low Responsive, Responsible Respondent.
All Contracts will be Awarded by the Board of Supervisors and signed
by the Chairman of the Board unless the authority has been clearly delegated
and authorized to others by the Board.
Upon receipt from the Contractor of the required Bonds and insurance after
Award, a Notice to Proceed will be issued which begins the performance
period of the Contract.
MC1-513 INSURANCE REQUIREMENTS All insurance requirements, insurance coverage contact language and indemnification
Contract language will be coordinated with the County Risk Management office prior
to issuance of a Solicitation or addendum thereto.
MC1-514 CHANGE ORDER AUTHORIZATION
The County Engineer may delegate authority to modify Contracts through
issuance of Change Orders as listed below, provided;
The Using Agency issuing the Change Order has been formally designated
by the County Engineer as an Article 5 Procurement Department;
and
The Change Order is reviewed and approved by an Article 5 Procurement
Officer; and
The Change Order is within the authority limits approved by the
County Engineer for that Using Agency; and
A standardized Change Order justification form is completed and
signed by all required Persons and placed in the Contract file.
Change Order Classification:
Time Only Change Orders - Change Orders that only address changes
to the time elements of a Contract may be approved and signed
by the County Engineer or by the department director of an Article
5 Procurement department.
Deduction Change Orders - Any Contract Modifications that result
in a reduction in the Contract cost may be approved by the County
Engineer without Board approval unless the modification will result
in a substantial change in the scope of work. The requirements
of MC1-514.A must be met.
Scope of Work Change Order- All Change Orders that will result
in a substantial change in scope of work, regardless of the cost
increase or decrease requires Board approval.
Change Order Authority
The County Engineer may request increased Change Order authority
based on the uniqueness of a specific project.
Construction Contract payments will be made in accordance with rates
and schedules identified in the Contract and are to be made within fourteen
(14) calendar days of receipt of a certified and approved payment request.
An estimate of the work submitted shall be deemed approved and certified
for payment after seven (7) days from the date of submission unless before
that time the Using Agency prepares and issues a specific written finding
setting forth those items in detail in the estimate of the work that are
not approved for payment under the Contract. The Using Agency may withhold
an amount from the progress payment sufficient to pay the expenses the
Using Agency reasonably expects to incur in correcting the deficiency
set forth in the written finding.
Unless arrangements have been made for substitute security and except
for Job-Order-Contracting, the Using Agency will retain 10% of each progress
payment made to Contractors until the work is 50% complete. After the
Contract is 50% completed no more than 5% of the amount of any subsequent
progress payments made under the Contract may be retained providing the
Contractor is making satisfactory progress on the project. Retention is
to be released upon final acceptance of the work and receipt of a Certificate
of Performance. Retention must be returned within sixty (60) days after
completion or filing the notice of completion.
Note: Retention for Design-Build construction services and Construction-Manager-at-Risk
are optional. Retention for Job-Order-Contracting construction services
is prohibited
Consultant progress payment requests which are not approved will be returned
to the consultant clearly stating the non-compliance. The consultant will
also be notified that payment is being held pending receipt of a revised
and corrected payment request.
Notification of progress payment to a prime Contractor shall be made
to the subcontractor within five (5) days of each payment, if requested
by the subcontractor.
A forbearance procedure may be used by the County when, through no fault
of the County, a consultant is unable or unwilling to complete the required
scope of work within the contracted performance period. The forbearance
shall acknowledge the consultants past due performance while maintaining
and protecting the County’s contractual rights and remedies. The seriousness
of the meeting schedules and completion dates shall be conveyed to the
consultant during fee negotiations and time of award and contract performance.
