Legislative Matter

Miami-Dade Legislative Item
File Number: 141780

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File Number: 141780

File Type: Resolution

Status: Withdrawn

Version: 0

Reference:

Control: Board of County Commissioners

File Name: RESOLUTION AUTHORIZING EXECUTION OF CHANGE ORDER NO. 1

Introduced: 8/8/2014

Requester: Aviation Department

Cost:

Final Action: 10/21/2014

Agenda Date: 10/21/2014

Agenda Item Number: 8A1

Notes:

Title:

RESOLUTION AUTHORIZING EXECUTION OF CHANGE ORDER NO. 1 TO THE MISCELLANEOUS CONSTRUCTION CONTRACT ITB NO. MCC-8-10 WITH MUNILLA CONSTRUCTION MANAGEMENT, LLC, INCREASING THE CONTRACT BY AN AMOUNT NOT TO EXCEED $30,000,000.00; AUTHORIZING THE MAYOR OR MAYOR’S DESIGNEE TO EXECUTE THE CHANGE ORDER FOR AND ON BEHALF OF MIAMI-DADE COUNTY AND TO EXERCISE THE PROVISIONS CONTAINED THEREIN

Indexes:

NONE

Sponsors:

NONE

Sunset Provision: No

Effective Date:

Expiration Date:

Registered Lobbyist:

None Listed

Legislative History
Acting Body	Date	Agenda Item	Action	Sent To	Due Date	Returned	Pass/Fail

Board of County Commissioners	10/21/2014	8A1	Withdrawn				P

Office of the Chairperson	10/15/2014		Withdrawals

Board of County Commissioners	10/7/2014	8A2	Deferred		10/21/2014		P
REPORT:	Commissioner Jordan requested that the foregoing proposed resolution be deferred until the Board of County Commissioners’ meeting scheduled for October 21, 2014.

Finance Committee	8/25/2014	3A	Forwarded to BCC with a favorable recommendation				P
REPORT:	Assistant County Attorney Geri Bonzon-Keenan read the foregoing proposed resolution into the record. Chairman Bovo opened the floor for public comments and called for persons wishing to appear before the Committee on the foregoing proposed resolution. The floor was closed after no one appeared wishing to speak. Commissioner Zapata asked for clarification about the proposed change order and the original $50 million funding source. Mr. Pedro Hernandez, Division Director, Facilities Development Management, Miami-Dade Aviation Department (MDAD) clarified that the change order was for an additional $30 million, representing an increase from $50 million to $80 million. He noted that the initial funding source was North Terminal Capital Improvement funds and reserve maintenance funds. Commissioner Zapata questioned why the project was underestimated. Mr. Hernandez explained that MDAD was unaware that they would receive a flat, low cost contract with an 8 percent markup. He further explained that large North Terminal emergency rehabilitation funding expenses were incurred. Mr. Hernandez noted a decision to expand the current contract was made rather than to secure a new agreement at a higher markup. Commissioner Zapata noted concern that the bid was not originally offered at $80 million, thus attracting contractors offering lower markups. He pointed out that this process encouraged vendors to initially underbid contracts and inflate the contract later. Commissioner Zapata said that the intended amount of work should have been included in the original bid and that there was no attempt made to rebid the contract. Mr. Carlos Jose, Assistant Director, Facilities Management, MDAD, explained that funds were used to cover the cost associated with large emergency expenditures at the North Terminal. Commissioner Zapata commented that the procurement process encouraged companies to submit low initial bids and then find reasons to raise the contract amount later. He pointed out that the proposed change order represented more than 50 percent of the original contract amount, noting that this proposal was not a good policy decision. Commissioner Heyman inquired whether MDAD or the contractor initiated the request for work order changes or funding. She also inquired whether the intent was to expand the existing contract to cover maintenance, operations, emergency, and construction costs associated with an existing project. Mr. Jose responded that MDAD initiated the request and that an existing contract was being expanded. Commissioner Heyman noted that she objected to change orders; however, pointed out that this request was associated with ongoing projects and that some of the money from the initial project was redirected to other purposes. She said that the current request was to replenish funds allocated to the original project that were used for other purposes and that the original scope was not being changed. Mr. Jose clarified that the statements just made by Commissioner Heyman were accurate. Commissioner Heyman stated that the proposal could have been documented to reaffirm that the change order was not impacting the previously approved scope of work but to replace funds that were used for other purposes. Chairman Bovo once again opened the floor for public comments and called for persons wishing to appear before the Committee on the foregoing proposed resolution. The floor was closed after no one appeared wishing to speak. Hearing no further questions or comments, the Committee proceeded to vote on the foregoing proposed resolution, as presented.

County Attorney	8/18/2014		Assigned	Finance Committee	8/25/2014

County Attorney	8/11/2014		Assigned	David M. Murray		8/13/2014

County Mayor	8/8/2014		Assigned	Jack Osterholt

County Mayor	8/8/2014		Assigned	County Attorney	10/7/2014
REPORT:	Aviation- Pending Cmte Assignment-

Legislative Text

TITLE
RESOLUTION AUTHORIZING EXECUTION OF CHANGE ORDER NO. 1 TO THE MISCELLANEOUS CONSTRUCTION CONTRACT ITB NO. MCC-8-10 WITH MUNILLA CONSTRUCTION MANAGEMENT, LLC, INCREASING THE CONTRACT BY AN AMOUNT NOT TO EXCEED $30,000,000.00; AUTHORIZING THE MAYOR OR MAYOR�S DESIGNEE TO EXECUTE THE CHANGE ORDER FOR AND ON BEHALF OF MIAMI-DADE COUNTY AND TO EXERCISE THE PROVISIONS CONTAINED THEREIN

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board authorizes the execution of Change Order No. 1 to the Miscellaneous Construction Contract, ITB No. MCC-8-10 with Munilla Construction Management, LLC, increasing the contract by an amount not to exceed $30,000,000.00, and authorizing the Mayor or Mayor�s designee to execute the Change Order for and on behalf of Miami-Dade County and to exercise provisions contained therein.

HEADER
Date:

To: Honorable Chairwoman Rebeca Sosa
and Members, Board of County Commissioners

From: Carlos A. Gimenez
Mayor

Subject: Change Order No. 1 to Miscellaneous Construction Contract, MCC-8-10, with Munilla Construction Management, LLC increasing the contract by $30 million

..RECOMMENDATION
It is recommended that the Board of County Commissioners (Board) approve and authorize the attached Change Order No. 1 to the Miscellaneous Construction Contract, MCC-8-10, with Munilla Construction Management (MCM), LLC, increasing the contract by $30 million.

SCOPE
The impact of this item is countywide as it relates to all Miami-Dade Aviation Department (MDAD) facilities.

FISCAL IMPACT/FUNDING SOURCE
The maximum contract amount is increased with Change Order No. 1 to $80,125,000.00. The projects performed under this contract will be funded primarily from MDAD proprietary funds (i.e., Revenue and Reserve Maintenance Funds), although some projects may qualify for bond funding.

TRACK RECORD/MONITOR
MCM has performed work for MDAD at an above-satisfactory level as reported by MDAD Project Managers. A review of the Capital Improvements Information System (CIIS) shows a total of fourteen (14) evaluations posted with an average rating of 3.5 out of a possible 4.0. The project manager for this contract is MDAD Chief of Construction & Contracts Aida Bao-Garciga.

COMPLIANCE DATA
There is no history of violations for this firm in the County�s Small Business Development database or the MDAD Minority Affairs records.

BODY
Pursuant to R-1122-11, the Board awarded the MDAD Miscellaneous Construction Contract, MCC-8-10, to MCM. The contract provides for a licensed general contractor who subcontracts projects on a competitive basis to allow MDAD to respond to demands for miscellaneous construction projects at its facilities in a timely and efficient manner. Projects include minor renovations, refurbishments, repairs, modifications, upgrades, installation of landscaping and related lighting, irrigation and maintenance work as well as various types of emergency and periodic maintenance for MDAD airport facilities.

Under the contract provisions, project orders are issued for each individual project. Each project value varies, however, most range from $10,000.00 to $2,000,000.00. As MDAD identifies projects, the Department and its consultants develop the required construction documents and identify the funding source for bidding the specific job. Each project is reviewed for recommendation and establishment of appropriate contract measures. Construction documents, contract measures and all pertinent project information are provided to the general contractor who is required to competitively bid each project and award the work to the subcontractor submitting the lowest �responsive and responsible� bid meeting all the project-order requirements.

The general contractor enters into subcontractor agreements with an emphasis on maximizing participation of Community Small Business Enterprise (CSBE) subcontractors certified by the Small Business Development (SBD) Department. Each project order and/or supporting documentation that describes the scope of work to be performed includes the applicable CSBE contract measures for the project.

MCC-8-10 has a CSBE measure of 18%. MCM has achieved 15% CSBE participation to date. This percentage is expected to increase once outstanding projects are awarded contingent upon approval Change Order No. 1.

These miscellaneous construction contracts have proven to be a successful and progressive approach that allows MDAD to respond quickly to the day-to-day need for small-to-medium construction projects and to provide work opportunities for CSBEs.

JUSTIFICATION
The MCC-8-10 contract has already committed to projects in excess of $45 million, many of which have been awarded or are in the bidding process. The available contract allocation has been reduced to approximately $3.82 million for bidding and award of additional miscellaneous construction projects. The increase of approximately 60% reflected on Change Order No. 1 will provide an additional $30,000,000.00 to the initial contract allocation for a total amount of $80,125,000.00.

It was necessary to use this contract to complete several unforeseen critical construction projects with crucial time constraints to support the development of the MIA North and South Terminals as well as the Miami Intermodal Center (MIC) and the Central Boulevard relocation. In total, nearly 30% of the current award amount has been committed to support the referenced capital construction projects. Project Orders have been issued for the following:

- Project Order #4 (Quick Response)
o Supplemental Authorization Order (SAO) #8 issued for the MIA FIS Station Interior Finish with an award cost of $89,679.60.
o SAO #10 for the MIA NTD FIS Security Doors Upgrade with a cost of $122,453.00.
o SAO #11 for the MIA NTD FIS Station Interior Finish with an award cost of $868.16.
o SAO #19 for the MIA NTD Back-up A/C Units Installation with an award cost of $66,059.80.
o SAOs #22 and 25 for the Central Boulevard Piers WB-2 & L-16 Grounding System Relocation with an award cost of $17,363.20.
- Project Order #5 for the MIA Central North Terminal Development (NTD) Market Place, Phases II and III, with an award cost of $3,170,291.45.
- Project Order #7 for the MIA NTD Terminal Operations Supervisors Offices with a cost of $3,933.86.
- Project Order #9 for the MIA NTD Ticket Counters Concourse Level (former NTD FIS Re-check Cc Level) with an award cost of $4,678,417.65.
- Project Order #19 for the MIA NTD FPL Vaults 1, 2 & 5 Fire Rated Damper with an award cost of $116,706.71.
- Project Order #20 for the MIA South Terminal 5th Floor Mech. Room 5K02 Exiting Modifications with a cost of $35,526.48.
- Project Order #23 for the NTD Baggage Handling System (BHS) Phase 3 Mechanical-Electrical with an award cost of $4,762,925.30.

MDAD has identified an additional $20 million in projects essential to maintain and preserve MDAD facilities, and/or relocate business partners. The purpose of the increase requested on Change Order No. 1 is to provide the contract capacity necessary to implement the work.

PROJECT NAME: Miscellaneous Construction Contract

PROJECT NO.: MCC-8-10

PROJECT LOCATION: Miami-Dade County Airports

COMPANY NAME/ADDRESS: Munilla Construction Management, LLC
6201 S.W. 70th Street, 2nd Floor
Miami, Florida 33143

COMPANY PRINCIPALS: Jorge Munilla, President
Juan Munilla, Vice President
Fernando Munilla, Vice President

COMPANY QUALIFIER: Jorge Munilla

GENDER/ETHNICITY AND
OWNERSHIP BREAKDOWN: Male Hispanic-100%

HOW LONG IN BUSINESS: 30 years

PREVIOUS AGREEMENTS
WITH THE COUNTY WITHIN
THE PAST FIVE (5) YEARS: According to the Firm History Report provided by SBD on February 28, 2014, the contractor has been awarded six (6) contracts in the amount of $192,295,014.50 and an approved deductive change order of -$16,168,113.25 for a total of $176,126,901.25.

TERM OF AGREEMENT: Four (4) years with one additional year to complete all authorized work initiated during the previous four-year term of the contract

OPTION(S) TO RENEW: None

ORIGINAL AGREEMENT AMOUNT: $50,125,000.00

RECOMMENDED MODIFICATION: Increase the limit of the original agreement amount by $30 million to a total maximum allocation of $80,125,000.00
CLASSIFICATION OF
CHANGE ORDER: County requested change

ADJUSTED AGREEMENT AMOUNT: $80,125,000.00 (including Inspector General Account)

PERCENT CHANGE THIS
MODIFICATION: 59.90%

CONTRACT MEASURES: Community Small Business Enterprise (CSBE)
Subcontractor goal 18% (Pre-Construction Services) ($177,980.00)

CONTRACT MEASURES
ACHIEVED TO DATE: MCO Construction Services, Inc.
15% ($26,697.00) CSBE Participation to date

IPSIG/INSPECTOR GENERAL: Provisions included on contract documents

RESPONSIBLE WAGES: Yes

USING DEPARTMENT: Miami-Dade Aviation Department

____________________________
Jack Osterholt, Deputy Mayor