Frequently Asked Questions about the HCC 2013 CIP Bond Program
How much of our bond projects have been competitively bid by CMaRs in sub-contracts?
All of the sub-contracts awarded by Construction Managers at Risk on our bond projects are competitively bid. There is some work that falls within the categories of “Owner Furnished, Contractor Installed” and “Owner Furnished, Owner Installed” that will be executed under existing contracts with the HCC System for the sake of system-wide uniformity.
As of the end of October 2015, ten of our fourteen projects have been competitively bid, with much of the work already awarded. The remaining projects will be competitively bid.
What strategies have been used to minimize cost that have given us the most bang for our buck?
The strategies that have been used to contain the cost of our 2013 CIP projects are relatively simple:
- Project teams made a diligent effort to understand the actual programmatic needs to be supported by the project.
- Needs, wants and desires were roughly prioritized so that the team understood the parameters for decision making.
- A conceptual model of the desired structure was made and the cost to construct that model estimated.
- Where costs to execute the concept exceeded the funds available, bold reductions in the design footprint were made. (This preserves the quality of the remaining construction, rather than gradually diminishing all expectations to preserve gross area.)
- When the team believes it has a constructable project, the estimated cost at completion is validated by multiple parties. (Architect/ Project Manager/ CMaR).
- The constructable design is “locked down”, so that future requests will not result in scope and cost creep.
- Project Metrics are reviewed weekly at the project level and monthly at the program level. All issues are dealt with promptly, before they have a chance to grow to a level that can’t be resolved within the Program authority and budget.
How deeply is the Bond Oversight Committee reviewing the projects/program?
The role of the Bond Oversight Committee is oversight, meaning they simply review the actions of the Bond Program to verify that HCC is upholding its commitments to stakeholders and acting prudently.
The BOC meets quarterly. At each meeting, HCC staff presents the status to date of projects, any significant milestones or issues that have arisen since the last meeting, and answers questions posed by the BOC members. Responses to those questions, as well as copies of any presentation material used during the meeting are then published to the BOC, the HCC Board of Trustees, and various administrators throughout the system.
What are the quote thresholds?
- $2,500-$49,999: A minimum of 3 written quotes will be requested
- $50,000+: Formal Competitive Bidding Process, Local newspaper notice (for any item over $100,000), Board of Trustee approval
What are the most common methods of procurement for goods and services?
The two most common methods of procurement are as follows:
- Invitation For Bid: Most familiar method. Award given to lowest responsive and responsible vendor. Price is a factor.
- Request For Proposals: Award given to vendor that provides the best overall value, service, reliability, resources and price are factors considered for the award.