Doing Business with Department of Enterprise Services for General Contractors and Subcontractors

1. Doing Business with Department of Enterprise Servicesfor General Contractors and Subcontractors June 19, 2013

2. Engineering and Architectural Services • Design and Construction Project Management • Energy Performance Contracting • We serve a number of major state agencies: - Community & Technical Colleges - 34 campuses - Department of Corrections - Department of Social and Health Services - Department of Veterans Affairs - Washington State Patrol - Department of Enterprise Services - Approximately 20 additional small agencies

3. Volume of Work Workload for the 13-15 Biennium is expected to be: • More than $500 million in work • Approximately 300 projects • Capital Budget not yet finalized

4. Public Works Laws • Title 39 of the Revised Code of Washington (RCW). • All work is directly or indirectly advertised publicly depending on the size of a project. • Method of contracting depends on the size and nature of the project.

5. Public Works Contracting • Design – Bid – Build - Limited Public Works (< $35,000) - Small Works Roster (< $300,000) - Advertised • General Contractor / Construction Manager (GC/CM) (> $2 million) • Design – Build (> $2 million) • Job Order Contracting (< $350,000)

6. Design–Bid–Build Designer Public Entity Contractor Selection Process Here General Contractor Sub-contractors

7. GC/CM Designer Public Entity Contractor Selected Early in Design General Contractor Subcontractor Selection Process Sub-contractors

8. Design - Build Designer D-B Consultant Public Entity Contractor Selected Early in Design General Contractor Subcontractors Selected by GC Sub-contractors

9. Job Order Contracting Designer Public Entity On-Call Contractor Selected Separate Designer Optional General Contractor/ Designer Sub-contractors

10. Look Ahead • View upcoming projects at: https://fortress.wa.gov/ga/apps/EAUpcomingProj/UpcomingProjects.aspx • View projects advertised for bid at: https://fortress.wa.gov/ga/apps/EASBids/BidCalendar.aspx • Projects are also advertised in the Daily Journal of Commerce and in the local newspaper.

11. Bid Documents • Documents are posted at designated plan centers. See list at: http://des.wa.gov/about/FormsPubs/Pages/Forms.aspx#Construction • Paper copies can be obtained from the designer.

12. Small Works Roster • Contractors for some projects <$300,000 are bid via the Small Works Roster (SWR) • To get on the SWR, see: http://www.des.wa.gov/services/facilities/Construction/Contractors/Pages/EASSmallWorksRoster.aspx

13. Small Works Roster • SWR bid opportunities are sent to contractors according to project type and location. • It is important for contractors keep information up to date.

14. Job Order Contracts • DES has four JOC contracts identified to cover certain regions in the state: • Eastern Washington Region • Statewide • Southwest Region • Northwest Region

15. Job Order Contracts • JOC contracts (cont.): • Each JOC has a limit of $4 million per year of work they can perform. • JOC can only perform 10% of the work with the remaining 90% of work subcontracted out.

16. Bid Openings • Follow the Instructions to Bidders in the documents carefully • Bid Bond or Bid Security is required • Other details: - Acknowledge any addenda - List major subcontractors - Sign the bid - Be on time

17. Contractor’s License • Bidders must have a current state of Washington contractor’s license. • Some specialties require special licenses.

18. Performance Bond • A 100% Payment and Performance bond is required. • An exception can be made for projects less than $35,000. • The performance bond must be submitted before the state will sign the construction contract.

19. Insurance • A minimum level of liability insurance will be specified in the bid documents. • Contractors must submit a certificate of insurance before the state will sign the contract.

20. Prevailing Wage Requirements • Contractors on public works projects must pay prevailing wages • An “Intent to Pay Prevailing Wage” form must be submitted for all trades prior to invoicing for those trades • At the end of the job, the “Affidavit of Wages Paid” form must be submitted for all trades

21. Apprenticeship Requirements • For projects >$750,000 a level of 15% apprenticeship participation is required. • The requirement is an aggregate for the overall project based on total labor hours. • Exceptions can be granted for some circumstances.

22. Minority and Women Business • Most projects have a 10% MBE and 6% WBE voluntary requirement. • DES requests MWBE data for the general and subcontractors on the third monthly invoice and at project completion. • We request data for both certified and self-identified MWBE participation.

23. Veteran-Owned Businesses • Executive Order 13-01 Veterans Transition Support. • Each executive cabinet agency shall set a target of awarding at least 5 % of all procurement contracts to certified veteran-owned businesses.

24. Questions? Contacts Nancy Deakins 360-407-9333 nancy.deakins@des.wa.gov & Kent Nugen 360-407-9346 kent.nugen@des.wa.gov Thank You