ORDINANCE NO. BL2010-611

An ordinance amending Chapter 4.12 of the Metropolitan Code to establish best value contracting, minority participation, and local construction and maintenance contracts as the required method of procurement for contracts related to new Convention Center and Hotel facilities on real property owned by the Metropolitan Government or any of its agencies.

BE IT ENACTED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. Section 4.12.010 of the Metropolitan Code is hereby amended by adding the following new definitions:

“Best value contracting” means a method of competitive construction and maintenance contracting that utilizes the solicitation of competitive sealed proposals and the evaluation of price proposals and technical proposals to make contract awards that represent the best value to the metropolitan government as determined under the procedures set forth in Section 4.12.105 for the Convention Center and Hotel.

“Construction and Maintenance contracts” means procurement contracts entered into by using agencies of the metropolitan government for construction services, as defined in Section 4.04,050(B) of this code, and for maintenance services, which includes contracts for construction, maintenance or repair of structures, facilities or real property or any addition thereto to the Convention Center and Hotel.

“Firm” means the offeror submitting a proposal for a procurement contract or a subcontractor of the offeror as applicable.

“Registered apprenticeship programs” means apprenticeship training programs registered with the U.S. Department of Labor.

“Technical evaluation criteria” means past performance, management plan and project staffing plan as defined in this section, or other technical criteria listed in requests for proposals.

“Technical proposal” means a proposal containing information and data regarding the past performance, management plan and project staffing plan of an offeror and the offerer’s prelisted subcontractors for the procurement contract and information regarding other applicable technical evaluation criteria listed in requests for proposals.

“Minority” means of African-American or Female ownership of Firm.

Section 2. Section 4.12.020 of the Metropolitan Code is hereby amended by adding the following new subsection H.:

H. Best value contracting for construction and maintenance contracts for the convention center and hotel.

Section 3. Chapter 4.12 of the Metropolitan Code is hereby amended by adding the following new Section 4.12.105:

Best value contracting for construction and maintenance contracts.

A. Conditions for Use

1. Agencies of the metropolitan government involved in the construction, renovation, installation, alteration, extension, removal, repairs and maintenance of new convention center and hotel facilities (“using agencies”) shall utilize the best value contracting method for construction and maintenance contracts.

2. Using agencies shall give public notice of best value contracts by issuing a request for proposals in accordance with the procedures set forth in Section 4.12.040.C of this chapter.

3. The other provisions of Section 4.12.040 relating to competitive proposals, and any applicable regulations thereunder, shall apply to best value contracts to the extent such provisions are consistent with this Section.

4. Requests for proposals shall instruct offerors to submit separate, sealed price proposals and sealed technical proposals. Price proposals shall remain sealed until the evaluation of all technical proposals has been completed.

5. Technical proposals shall be evaluated and scored by a technical evaluation team consisting of at least three Metropolitan Government employees experienced in construction or maintenance contracting.

B. Best Value Contracting Requests for Proposals Process

When administering the requests for proposals process under this Section, the using agency shall comply with the following requirements, which shall apply to all requests for proposals for construction and maintenance contracts:

1. Subcontractor Prelisting Requirements. Requests for proposals shall specify that Offerors shall be required to prelist in their technical proposals all subcontractors that will be used to perform work on the procurement contract whose subcontracts are valued at $10,000 or more. An offeror shall prelist only one subcontractor for each trade or classification of work, unless it plans to utilize more than one subcontractor on the procurement contract in a single trade or classification of work. Subcontractors prelisted in proposals may not be substituted without the express, written authorization of the using agency. When prelisting firms for the purpose of this section, the offeror shall identify the type of work and the approximate dollar value of the work to be performed by the listed firm.

2. Technical Evaluation Factors. Requests for proposals shall contain the following evaluation factors and/or sub-factors, which shall solicit information for offerors and pre-listed subcontractors for all criteria:

(a) Price

(b) Past performance, including
i) quality of performance, schedule compliance, budget compliance, cost control, and responsiveness to customer needs/interests;
ii) specialized experience and/or experience with similar projects;
iii) record of compliance and payment of required prevailing wage rate;
iv) record of business integrity, including any incidents of current or past law violations, or criminal, civil, or administrative complaints or charges;
v) record of health insurance for all employees; and
vi) record of compliance with safety regulations.

(c) Management plan, including
i) qualifications/experience of key management and professional personnel; scheduling plan or project management plan or technical approach, including reliability of delivery and implementation schedules;
ii) financial stability/financial capabilities; bonding capacity, ability to provide performance and payment bonds for the contract/project;
iii) technical resources, including equipment, computer and data processing capabilities.
iv) quality control/quality assurance/quality management programs; warranties/guarantees provided on contract work;
v) safety programs and safety record, including experience modification rating and OSHA 10-hour training;
vi) environmental objectives, such as promoting energy efficiency, waste reduction, source reduction and maximum practicable recovered material content;

(d) Project staffing plan, including
i) quality of human resources, including the number and percentage of craft personnel that have completed skills training and apprenticeship programs registered with the U.S. Department of Labor by craft personnel;
ii) current and on-going training for apprentices and journeypersons, including contractor and subcontractor participation in skills training and apprenticeship programs registered with the U.S. Department of Labor and the amount of time and resources invested in such programs
iii) project staffing capabilities, including the number and qualifications of in-house employees, as well as outside personnel resources available to contractor;
iv) drug testing programs, including pre-hire, post-accident, and random drug screenings.
v) health insurance for employees and employees’ families.
vi) participation in the procurement contract by minority, women and small businesses.

3. Weight of Evaluation Factors. Requests for proposals shall specify that that the following evaluation factors shall be assigned the following respective weights:

(a) Price: 25%
(b) Past performance: 25%
(c) Management plan: 25%
(d) Project staffing plan: 25%

4 The above-stated evaluation factors and respective weights shall be specifically disclosed in requests for proposals
5. Prices proposed by offerors shall be scored according to the following method:

(a) The offeror submitting the lowest price shall receive the maximum price score of 25.

(b) The price proposed by each successive offeror shall be scored relative to the lowest price, according to the following formula:

the lowest price offered shall be divided by the next lowest price;

the resulting figure shall then be multiplied by 25 to determine the price score of the offeror with the second lowest price; and

the price score of each additional offeror shall be calculated in the same manner.

(c) This formula may also be stated as:

lowest price offered x 25 = price score for offeror
second lowest price with second lowest price

6. For procurement contracts which do not utilize lump sum prices, appropriate adjustments may be made to the formula for scoring price proposals as determined by regulations issued pursuant to this Section.

7. Technical proposals shall document the qualifications and capabilities of the offeror and its prelisted subcontractors with respect to all technical evaluation criteria listed in requests for proposals.

8. The technical evaluation factors listed in the requests for proposals shall be evaluated and scored by the technical evaluation team according to the assigned weights.

9. Point scores assigned to offerors for technical proposals shall be determined based on relevant information regarding the qualifications and capabilities of the offeror and its prelisted subcontractors in the evaluated areas. Information on qualifications and capabilities may be obtained from any reliable source, including but not limited to, information provided by firms in their technical proposals, prior customers and past performance evaluation reports.

10. In the request for proposals, the using agency shall require the offeror and its prelisted subcontractors to submit copies of any available performance evaluation reports for the past three years prepared on the firm by any source, including but not limited to reports prepared in compliance with subsection D. of this Section. This information shall be considered when assigning past performance scores for offerors.

11. Scores on all technical evaluation factors shall be added together to determine a final, composite technical score for each offeror.

12. Final, composite technical scores shall be reviewed by at least two management officials of the using agency who are not members of the technical evaluation team to ensure accuracy of technical evaluation scores. This review shall be completed prior to the opening of price proposals.

13. After final composite technical scores are completed, price proposals shall be opened and scored according to the method and formula set forth in subsection 4.12.100 8,5.

14. The price score and final composite technical score of each offeror shall be combined for a total score.

15. The offeror with the highest total score shall be awarded the procurement contract, provided its proposal is responsive to the request for proposals and it is determined to be a responsible contractor.

C. New Businesses, Joint Ventures

In the even that an offeror or a listed subcontractor is a new business and does not have a performance record sufficient to evaluate the firm’s past performance, the using agency shall consider the past performance of the firm’s officers, management, and owners or partners. In the event that an offeror is a joint venture, its technical evaluation score shall be based on an evaluation of all entities in the joint venture.

D. Performance Evaluation System.

For each procurement contract covered by this Section, the using agency responsible for the contract shall prepare a Contractor Performance Evaluation Report, to which the following conditions shall apply:

1. The using agency must prepare a Contractor Performance Evaluation Report within 21 days of completion of the contract.

2. A copy of the Contractor Performance Evaluation Report shall be forwarded to the Principal Contracting Officer within thirty (30) days of completion of the contract. The Principal Contracting Officer shall maintain a centralized database for Contractor Performance Evaluation Reports, which shall be accessible to and used by using agencies in awarding procurement contracts under this Section.

3. The Contractor Performance Evaluation Report shall, at a minimum, include the following information and data:

(a) The initial price of the contract and the final price of the contract;

(b) The original specified date of project completion and the actual date of project completion;

(c) Ratings on safety, performance quality and law compliance for the contractor and its pre-listed subcontractors.

4. A contractor or pre-listed subcontractor may request reconsideration of a performance rating or score by submitting a written request to the Principal Contracting Officer within 60 days of completion of the contract. The Principal Contracting Officer may confirm a rating or score or revise it if he or she finds that it is arbitrary or not supported by the facts. This determination shall be final.

E. Public Notice of Contract Award.
Upon issuance of a contract award, the contracting agency shall, consistent with the conditions specified below, publicly announce its award in accordance with the public notice requirements applicable to sealed bidding under section 4.12.040. Said notice shall include, at a minimum:

1. the identity of the contractor to whom the award is made, the winning contractor’s price and its final composite technical score; and

2. the prices offered and composite technical scores of the other offerors.

Section 2. Best efforts should be made to ensure 20% minority participation in the procurements of contracts for the new Convention Center and Hotel facilities.

Section 3. Preference should be given to best value bids of local firms.

Section 4. Except as amended herein, all previous ordinances not inconsistent with the terms of this ordinance shall continue in full force and effect.

Section 5. This Ordinance shall take effect immediately upon its enactment, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Bo Mitchell, Vivian Wilhoite

Amendment No. 1
To
Ordinance No. BL2010-611

Madam President:

I move to amend Ordinance No. BL2010-611 as follows:

1. By renumbering the last four sections of the ordinance as Section 4, Section 5, Section 6, and Section 7, respectively.

2. By amending Section 3 by adding the following provision at the end of subsection B.2:
“(e) Business/corporate domicile located within the Nashville Metropolitan Statistical Area as defined by the U.S. Office of Management and Budget”

3. By amending Section 3 by deleting the provisions of subsection B.3 and substituting with the following:

“Weight of Evaluation Factors. Requests for proposals shall specify that the following evaluation factors shall be assigned the following respective weights:
(a) 50% Price
(b) 15% Past performance
(c) 15% Management plan
(d) 15% Project staffing plan
(e) 5% Business/corporate domicile within the Nashville MSA”

4. By amending Section 3 by adding the following provision as subsection F.:

F. Each contracting agency shall provide a report to the using agency not later than the fifteenth day of each odd month detailing the zip codes of the permanent residences of its employees working on the convention center and/or convention center hotel, and the total number of employees residing in each of those zip codes. Only the zip codes and number of employees in each of the zip codes shall be provided. No employee names, addresses, or other personal employee information shall be required as part of the reporting requirement of this subsection.

Sponsored by: Bo Mitchell, Vivian Wilhoite, Sam Coleman