City of Sacramento
City Council - 5PM Report
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File ID: 2023-00929 8/29/2023 Consent Item 4.
Pre-Selected Consultant Services List and Professional Services Agreement: Citywide Labor Compliance Services
File ID: 2023-00929
Location: Citywide
Recommendation: Pass a Motion: 1) authorizing the City Manager or the City Manager’s designee to establish a Citywide Pre-Selected Consultant Services List for Labor Compliance Services; 2) awarding a Professional Services Agreement for Citywide Labor Compliance Services to Contractor Compliance and Monitoring, Inc. (CCMI) for an amount not to exceed $400,000; and 3) authorizing the City Manager or the City Manager’s designee to execute a Professional Services Agreement for Citywide Labor Compliance Services for an amount not to exceed $400,000 with Contractor Compliance and Monitoring, Inc. (CCMI).
Contact: Jose R. Ledesma, Program Specialist, (916) 808-8195, [email protected]; Ofelia Avalos, Engineering Services Manager, (916) 808-5054, [email protected], Department of Public Works
Presenter: None.
Attachments:
1-Description/Analysis
2-Professional Services Agreement
Description/Analysis
Issue Detail: To provide on-time labor compliance monitoring services for construction projects, the Department of Public Works, Engineering Services Division, seeks approval of an agreement with CCMI to augment City Labor Compliance staff to help manage influx of workload during peak times.
Public works projects are required to comply with state and sometimes federal prevailing wage requirements. Confirmation of wages and benefits that are being paid based on job classification is an element of ensuring that prevailing wage requirements are being met on City-contracted public works projects. To ensure that this review can be accomplished properly and in a timely manner, the City often uses qualified labor compliance firms.
File ID: 2023-00929 8/29/2023 Consent Item 4.
This report will also establish a list of four (4) pre-qualified labor compliance firms for use for all citywide departments on an as-needed basis.
Policy Considerations: These services are needed to ensure that the City meets regulatory requirements mandated by City Code 3.60.180, <http://www.qcode.us/codes/sacramento/view.php? topic=3-3_60-v-3_60_180&frames=on>the Department of Industrial Relations (DIR), the Department of Labor (DOL), and State of California Department of Transportation (Caltrans) policies and procedures relating to City construction projects.
Economic Impacts: None.
Environmental Considerations:
California Environmental Quality Act (CEQA): The approval of professional service agreements is not considered a project as defined by Section 15378 of the California Environmental Quality Act guidelines. The recommended action involves no physical construction and has no potential to have a significant impact to the environment.
Sustainability: Not applicable.
Commission/Committee Action: None.
Rationale for Recommendation: A request for proposals (RFP) for labor compliance services was advertised on January 6, 2023, with proposals due on February 3, 2023. Six proposals were received: Contractor Compliance & Monitoring, Inc. (CCMI); Cumming Group; DCM Group; S&H Consultants; The Labor Compliance Managers and Silveira Consulting, Inc. All six firms were reviewed and ranked. The top four firms were short-listed for citywide use by a multi-departmental review panel. The top four firms selected were DCM Group, S&H Consultants, Silveira Consulting, Inc. and Contractor Compliance & Monitoring, Inc. All four firms are women-owned, Disadvantaged Business Enterprises (DBE).
City departments and divisions without sufficient resources to perform labor compliance monitoring can utilize the pre-qualified list and issue separate contracts as needed. Appropriate approvals will be obtained for each contract (e.g., if action by the City Council is required to execute a contract for labor compliance services, then each department must obtain approval from the City Council prior to award).
Given the number of large construction projects, the Department of Public Works, Engineering Services Division, is opting to enter into a Master Services Agreement with Contractor Compliance & Monitoring, Inc. for a not-to-exceed amount of $400,000, which will allow it to ensure that all construction contracts comply with required prevailing wages and avoid project delays.
File ID: 2023-00929 8/29/2023 Consent Item 4.
Financial Considerations: Purchase orders encumbering funds under this agreement will be created based on projects and funding. Funding for services will be provided through capital improvement project budgets or private development project budgets (when private projects have public funding and are required to comply with prevailing wage requirements). The total amount of this professional services agreement shall not exceed $400,000.
Local Business Enterprise (LBE): An LBE waiver for the 5% participation requirement was obtained prior to advertising the RFP, per City policy. The 5% preference was in effect; however, only DCM Group qualified for the preference.
Background The Department of Industrial Relations (DIR), Department of Labor (DOL), and State of California Department of Transportation (Caltrans) policies and procedures and State of California Labor Code Section 1771.5 and City Code 3.60.180 require specific labor compliance monitoring and administrative services for City construction projects and professional services subject to State or Federal prevailing wage laws and apprenticeship standards. Activities include but are not limited to:
field interviews with employees at the project job site, review of certified payroll and apprenticeship documents, investigation of prevailing wage violation complaints, processing and reconciliation of contractor pay request applications, facilitating the project closeout process, and providing technical assistance and administrative support to staff and contractors related to labor compliance.
To facilitate the City’s effort in meeting regulatory mandates, the Department of Public Works advertised a Request for Proposals (RFP) for labor compliance services. Six firms responded and were determined to be fully responsive to RFP requirements.
A panel of qualified City staff reviewed and evaluated the consultant teams’ written proposals based upon experience, qualifications, labor compliance understanding, and work plan among other factors.
All consultant teams were deemed qualified responders to the proposal solicitation process. The panel opted to short-list four (4) firms for Citywide use for labor compliance. The pre-qualified list is established for five years with no extension.
The agreement with Contractor Compliance & Monitoring, Inc. is a three-year agreement with the option to extend for two additional years.