All contracts with outside contractors supplying labor and/or materials for facilities projects up to $25,000 within the purview of the colleges shall be contracted for using the Facilities Order Form (See attached). Such projects do not require formal or informal bidding prior to selection of an appropriate contractor to do the work. Except under the limited circumstances described in Section 3(f) herein, an officer or authorized representative of the outside contractor or vendor must sign the Facilities Order Form prior to performing any work on the contract.
2. Use of Form
Specifically, the Form may be used for construction alterations, improvements, equipment rental (not leasing or lease purchasing), maintenance and repair to the college facilities up to $25,000. An example of this type of work may be as follows:
(a) Repairing, modifying or servicing of any district-owned equipment or property that is not a fixed part of a building or structure.
(b) Repairing, modifying or servicing buildings, grounds, structures and installed equipment all of which is the property of the District.
(c) Short-term equipment rental. If long-term equipment rental is required for work involving several projects or on-going maintenance functions, such contracts must be processed through the Contracts Section.
(d) Cleaning district-owned property purchased with District funds.
(e) Trash removal on a project or one-time only collection basis (i.e., trash or debris that is generated on the campus and cannot be removed under the conditions of the existing trash collection contract).
(f) Installation of new equipment in any college facility, which would then become a permanent part of that facility (also known as installed equipment).
The procurement of professional services from architects, engineers, environmental consultants, soil testing specialists and other professionals who may be utilized to provide studies, plans, specifications, drawings or other detailed information necessary to undertake the project shall be contracted for using a consultant proposal or professional services agreement depending on the total cost and complexity of the work being requested. The Facilities Order Form may not be used for procurement of these services. The procurement of professional services shall be in accordance with the relevant Board Rules and Business Operations Procedures.
The Facilities Order Form may be used for making multiple payments such as periodic payments, when expressly written into the description of the work on the form. However, such multiple payments shall not exceed $25,000 when aggregated. Moreover, such use of the Form for multiple payments shall not be used to engage in any type of project splitting as specified herein.
3. Guidelines for Processing the Form
(a) The Facilities Manager shall determine the scope of work and the local funding availability for the proposed project.
(b) The Facilities Manager should attempt to solicit at least three written quotes for the project from the appropriate contractor(s). Documentation of the quotes provided by contractors should be kept in the project file. However, if three written quotes are not received, a record of the contractors solicited should be kept in the file.
(c) The Facilities Manager negotiates the cost or estimates the cost of work with the appropriate contractor(s). Such costs may be negotiated informally.
(d) The Facilities Manager shall recommend the selection of a contractor to the College administration based on what is in the best interests of the College, legally appropriate and a sound business practice.
(e) The Facilities Manager prepares the Form, plans and specifications, or related documentation as applicable and necessary for the project. The Facilities Manager may request technical assistance from the Facilities Planning and Development Department.
(f) In all other circumstances, except those listed below, the Facilities Manager must sign the Form, obtain the contractor’s signature and the College President or Vice President’s signature on the Form, and then process the encumbrance of the project funds through the College Business Office. The Facilities Manager may fax the form to the contractor prior to performance and receive a fax signature on the form to begin work. However, the original form should be sent out immediately to the contractor for a wet signature and returned by the contractor to the Facilities Manager as soon as possible.
A contractor’s signature may not be required if:
(1) The project involves emergency circumstances involving public health, safety or threat to the continuation of existing classes at the college as provided for in Public Contract Code Sections 22035, 20654 and Government Code Section 8858; OR
(2) The project involves routine, reoccurring repair or maintenance up to $10,000, where repair or maintenance is performed by an outside vendor or contractor that does not legally require a general contractor’s or trade license to perform the work AND the Vice President of Administration or his/her designee has reasonably determined that the benefit of immediate procurement outweighs the risk and liability of a contract without the contractor’s signature. Such a determination should include the following issues:
(a) whether the vendor has a well-established record of responsible performance or service with the college;
(b) whether the repair, service or performance will occur off-campus or on-campus;
(c) whether the vendor has a valid insurance certificate or endorsement already on file with the college; and
(d) any other factor that would used to reasonably weigh whether performance of the work on the Order is a low risk vs. a high risk activity.
The Facilities Manager shall check the appropriate box on the Form if he/she determines that the Form does not require a contractor’s signature.
(g) Once the Facilities Manager obtains the required signatures on the Form, the Facilities Manager encumbers the funds on the Form through the College Business Office. The College shall be responsible for numbering its forms. Each Form Number should begin with an “L” followed by the college location and an assigned sequence of numbers. Ex: L-P#### -or L-E####.
(h) For ordinary facilities projects, a copy of the completed form to the contractor shall serve as the Notice to Proceed on the work. For projects not requiring contractor’s signature on the Form, the Facilities Manager may issue an oral notice to proceed after completion of the item as long as the work has been approved by the appropriate college administration.
(i) The Facilities Manager forwards a written list of contracts up to $25,000 to the Facilities, Planning and Development Department for Board ratification at the end of each month. The Board must ratify these contracts within (60) sixty calendar days of the award of the contract.
(j) The Facilities Manager or designee inspects the work, coordinates the contract, and accepts the completed work as an agent of the District.
(k) The Facilities Manager reviews the contractor’s invoice, reconciles it with the Form, approves and certifies it for payment and forwards it, together with the original of the Form to the Accounts Payable Section for payment processing.
4. Completion and Distribution of the Form
(a) Special attention should be given to the portion of the Form describing to the contractor or vendor the type and/or scope of work to be accomplished. This authorization for the work should be as specific as possible and should include any special conditions involved. The data must be concise and clearly state what is to be done. All supporting data referenced in the body of the Form must be attached and incorporated into the contract by reference, and distributed with the copies furnished to the contractor/vendor and the District.
(b) After completing the Form and obtaining the necessary written approvals, the Facilities Manager should distribute copies of the Form as follows:
i. The Form should be forwarded to the Business Office who encumbers it and forwards a copy to the Districts Accounts Payable Section and retains a copy in the Business Office.
ii. The original will be returned to the Plant Facilities Office who will be responsible for distribution of copies as follows:
1. A copy to the vendor or contractor to initiate or confirm the work completed.
2. A copy to the Facilities Planning and Development Department in order to request Board ratification within 60 calendar days of the Form’s execution.
iii. The original will be sent to the District’s Accounts Payable Section when work has been completed, together with the vendor’s invoice(s) signed and certified “Approved for Payment”.
5. Special Handling of Form due to Costs in Excess or Non-Routine Project
(a) The costs of the project shall not exceed $25,000. In the case of a public works project, should the costs exceed $25,000 while the contract is being performed, the Facilities Manager must bid any excess work over the $25,000 limit and must provide the following information:
i. Justification for the increase in costs.
ii. The amount of the increase.
iii. If applicable, any changes in the scope or type of work
iv. The Facilities Manager and vendor/contractor’s signature approving and agreeing to the change and amount increase in the contract.
However, in situations of “emergency” as defined by Public Contract Code Sections 22035, 20654 and Government Code Section 8558, the excess work may be exempt from such bidding requirements.
(b) If additional costs are incurred but the total cost is still below the limit, the vendor/contractor must receive prior approval from the Facilities Manager. The Facilities Manager will work with the Business Office to raise the encumbrance accordingly.
(c) If a project is of a type that is non-routine in nature, prior approval by the Director of Facilities Planning and Development Department is required. Such a project may include, but not be limited to, the following:
i. Projects requiring District funding levels.
ii. Projects requiring approval by other outside regulatory agencies.
iii. Projects requiring an Environmental Impact Assessment or any other report required by the CEQA or state or federal environmental compliance laws.
iv. Projects involving trailer rental.
(d) If student body funds (ASO) are to be used for a facilities project, these
funds will be first transferred to the college General Fund for contract execution. Such action ensures the following:
i. All work on District owned property is accomplished by District
ii. The District retains title to the work.
iii. All legal contractual requirements are satisfied.
6. Contractor and Vendor Selection
(a) License Check: Any contractor or vendor contracted to perform work must possess the required license(s) necessary to do that type of work. The Facilities Manager shall require written proof of contractor/vendor license(s) and must perform the necessary license check on the contractor/vendor prior to performance of the contract.
(b) Liability Insurance: The Facilities Manager shall require written proof of the required liability insurance(s) from any vendor or contractor doing business with the District.
(c) Compliance with Diversity and Nondiscrimination: Contracts with vendors/contractors must be in compliance with State, Federal and District policies of Equal Employment Opportunity and Nondiscrimination.
7. Project Splitting Prohibited
(a) Project splitting is defined as dividing a single project or single acquisition into smaller projects or acquisitions for the purpose of evading the laws requiring competitive bidding.
(b) Situations may occur in the project planning that could have the apparent earmarks of project splitting. They may involve funding availability, project definition, legal opinion, location(s) of the work and other factors. If there is any doubt concerning the legality of the project, the Facilities Manager shall consult with the Director of Facilities Planning and Development Department for assistance.
CROSS REFERENCES TO: Public Contract Code Sections 20651, 22000-22045, Board Rule 7100-7202, Chancellor’s Administrative Regulation B-10
DATE OF ISSUANCE:
LATEST DATE OF REVISION: