Chapter Three

Processes and Procedures

Property Manager Selection Process

As mentioned in Chapter II, the Department of Public Works has shifted toward using mostly private contractors to manage the various buildings and grounds under its care and control. The department currently has personal service agreements with six companies to provide property management services. The private contractors manage 92 percent of the gross square footage for buildings under DPW's direction, according to DPW data.

Contract awards. The process used by DPW to select private management companies is outlined in Figure III-1. Contractors are selected using an open competitive bidding process based on proposals they submit to DPW. Personal service agreements are developed for each contractor.

Figure III-1. Property Management Contractor Selection Process.

As Figure III-1 outlines, DPW must first receive approval from the Office of Policy and Management (OPM) before entering into any personal service agreements for property management services. Upon OPM approval, DPW solicits proposals from private contractors for management services.

Before the close of the bid submission stage, prospective contractors attend a bidders' conference held at the site where the services will be performed. The bidders are given a walk-through of the site giving them a firsthand look of the property before submitting their proposal to DPW.

Once the bids are received, they are reviewed by an internal DPW screening team. The team consists of financial management and facilities management staff. The proposals are reviewed based on weighted criteria, with each proposal scored by the team. Bidders may be asked to attend an oral interview with the screening team, if necessary. (See Appendix B for scoring criteria.)

After the bids are scored, they are ranked in accordance with their scores. The final rankings are then submitted to a DPW deputy commissioner for review. Following this step, the commissioner receives the top three scores and has final approval to enter into a personal service agreement with a contractor.

DPW also invites representatives from the agencies occupying the buildings where management contract is being rebid to participate in the vendor selection process. Tenant representatives become part of the in-house screening team and help score the written bids and participate in the oral interview process. A presence by the tenant representatives on the screening team helps ensure selection of the contractor who best meets the needs of the building tenants.

Use of subcontractors. The contractors named in personal service agreements with DPW are permitted to use subcontractors to carry out various property management services. DPW guidelines require the primary contractor to provide the department with copies of any proposed contracts entered into with a subcontractor to provide services. The contractor must also inform DPW of any relationship between the contractor and the subcontractor. The department must provide written consent to the contractor before any work with a subcontractor can begin. DPW guidelines further stipulate all service contracts with subcontractors must:

• be on a fixed-rate basis;
• be in the name of the contractor;
• follow a competitive bidding process outlined by DPW;
• be for a specified term and include a cancellation provision of not less than 30 days notice for cause;
• require all service vendors to provide evidence of sufficient insurance; and
• be within the guidelines set forth in the contractor's approved operating budget.

Contract length. The standard contract length for each of the six private management companies currently used by DPW is five years. The department informed the committee personal service agreements are set at five years to allow the contractor time to become accustomed to the particular building being managed. Five-year agreements are said to help lessen contractor turnover and keep DPW from having to frequently re-bid contracts. The property management contractor at the Capitol noted it is common for such contracts to be between three and five years.

Work Order Process

Although DPW uses six different contractors to provide property management services plus its own internal staff, the process used to generate and complete work orders is generally the same. Figure III-2 illustrates the process.

As the figure shows, tenants within a building first make a service request to the tenant representative or agency liaison. The tenant representative makes an initial determination whether the problem warrants a formal request to the property manager or if the problem can be rectified in another manner. Once a work order number is assigned, the order is sent to the assigned person responsible for ensuring the problem is corrected. This can be an on-site property manager, a site mechanic, or an outsourced subcontractor. The work is then done to correct the problem.

Following completion of the work, relevant information about the job is sent back to the company's main office. The information is recorded and the work order is then closed. If there is a problem with the work completed, remediation efforts are made between the property management company and the agency employee who made the original request.

The process outlined in Figure III-2 is somewhat different for the State Office Building because of lead/asbestos containing materials within the building. The building, managed by DPW, has undergone comprehensive testing for lead and asbestos. (A more detailed description of this process is provided below.) As such, prior to the initiation of any work within the building, all service requests must be reviewed by the environmental contractor within the building. This person has knowledge of the areas containing lead or asbestos throughout the building and acts as the initial clearinghouse for all repair/maintenance requests. Work orders can only proceed after the specialist has given his approval and any lead/asbestos matters have been resolved.

Billing. DPW informed the committee that contractors must submit their maintenance fee as part of their operating budget on an annual basis. DPW reimburses a company's expenses on a monthly basis, and it is up to the company to stay within its operating budget at the end of a given year.

The agencies occupying properties under DPW control are not accountable for maintenance or repair expenses. An exception to this is if the agency receives federal funding for the building operations, such as the state labor department.

DPW requires each contractor to submit a monthly billing package for reimbursement purposes. The billing package includes all the invoices incurred by the contractor for the month. DPW reviews the invoices to ensure they fall within the parameters of the contractor's yearly operating budget. Contractor's may be questioned by DPW if there are discrepancies with invoices, or if overall expenes for a particular line item exceed the amount in the operating budget. All monthly billing packages are reviewed by the financial management and facilities management units before being paid by the department.

Contractor expenses within certain thresholds must follow specific DPW guidelines. For example, contractors making purchases in excess of $1,000 must follow a specific process before the service is approved by DPW. Contractors are required to solicit at least three competitive bids for any purchase exceeding the $1,000 threshold and show DPW this was done. Further, if a contractor does not select the lowest bid, written justification must be made to DPW. Additional requirements exist for expenses over $10,000.

Monthly invoices are reviewed by DPW prior to payment. The contractor submits the bill with any necessary supporting documentation to DPW's financial management section. The request is reviewed by that unit and then sent to the Facilities Management unit for further review. If approved, the request goes back to the financial management unit for final processing.

Tenant Relations

Tenant manual/handbook. One way DPW helps ensure consistency among the various properties under its care and control is by requiring each property manager to develop and distribute a tenant manual for each building managed. The manuals describe the various policies and procedures used within the building, from reporting a service request to health, safety, and personal protection matters. The manuals are distributed to each agency's building representative. It is up to the individual agencies as to which employees within the agency receive the handbook.

Tenant meetings. DPW encourages each property management contractor to meet with the tenant representatives from each building the contractor manages. The meetings provide a forum for exchanging information between the property manager and the building representatives. Issues regarding property management are discussed at these meetings.

Committee staff attended several tenant meetings. The meetings seemed to be productive and a lot of information was passed between the building representatives and the property manager. It should be noted, however, no such meetings are held by DPW for buildings it directly manages. The department told the committee staff that although it does not hold formal meetings with its tenant representatives due to staffing constraints on part of the department, it is in contact with building representatives on a frequent basis.

Operations and Maintenance Program

As mentioned above, the work order process for the State Office Building is somewhat different than what is described in Figure III-1. This is due to lead and asbestos containing materials identified within the building.

The State Office Building underwent a testing program for lead and asbestos in late 1998. The testing was conducted in response to concerns raised by various unions representing maintenance and service employees within the building. An agreement was reached with the unions, and the final result was the development of the Operations and Maintenance (O/M) program.

The intended purpose of the O/M program is to provide an organized set of procedures and work practices to ensure the health and safety of building maintenance personnel, tenants, and outside vendors from hazards associated with asbestos and lead. Prior to the program, there was concern no one knew what areas within the building contained lead/asbestos. The program provides for worker training and specific work practices aimed at minimizing the disturbance of the lead and asbestos containing materials. The program outlines specific training and emergency practices to be followed and requires testing be made of the building.

DPW decided one person should be responsible for administering and coordinating the program and the O/M plan developed for State Office Building. A private environmental specialist was hired to manage the program because no one employed by the state had the necessary training and experience. The contractor is on-site 40 hours a week. The program began in April 1999, and the contractor has been present since then.

All matters pertaining to opening or disturbing any areas in the building possibly containing asbestos or lead must first be approved by the on-site contractor. The contractor reviews the building's O/M plan and test results and decides whether the work can be done by DPW staff or if abatement must be made. If abatement is necessary, the state contracts with several private licensed contractors for asbestos removal and air sampling.

The O/M plan provides for training for facilities trades employees within the State Office Building in accordance with state and federal regulations. According to the on-site contractor, the state employees have received the 16-hour asbestos awareness training as required. Although the training prepares the employees for working with low-level asbestos materials, only a licensed contractor performs repair/abatement activities within the building. Once the abatement contractor is finished with the necessary abatement, the DPW trades personnel can complete their work.

Other sites with O/M plans. There are four other sites in addition to the State Office Building currently developing O/M plans. The sites are all owned by the public works department and located in Hartford and Wethersfield. Inspections for lead and asbestos within these buildings have been conducted. The full O/M plans for the sites are being developed.

Performance Monitoring

Although performance monitoring of property management services does not initially seem to receive a lot of emphasis by DPW, several methods are used to monitor performance of facilities management. The committee was told the Facilities Management unit uses standards developed by the Buildings and Office Management Association (BOMA) -- a national association for facilities management -- regarding maintenance and property management costs for various types of activities. The operating budgets and expenses of the various private management companies used by DPW are compared against the BOMA standards for cost-per-square-foot. If the department finds discrepancies with the contractors' costs, inquiries are made by the department.

The committee was also informed that "customer feedback" is used to help evaluate the performance of property management contractors. Although no formal mechanism is in place to receive such feedback, DPW meets with tenant representatives. Further, when a property manager's contract is about to expire agency representatives are encouraged to join DPW in evaluating the overall performance of the present contractor - if the contractor is rebidding for the job - as well as other contractors submitting proposals for the new contract.

The department noted to the facilities management function overseeing both the outsourced and in-house property management programs is presently done with two managers. The Facilities Management unit would like to see frequent inspections, increased monitoring/standardization/benchmark measures, and a fully implemented database. According to the department, however, more staff resources are necessary to fulfill these responsibilities.

Monthly reports. Monthly financial reports are required from each property management contractor. The reports are used for billing and reimbursement purposes. The private contractors also send work order information to DPW. The committee was informed, however, the department does not analyze the work order data because of a lack of staff.

DPW also receives monthly work order summaries for the several buildings it manages. Service requests for the buildings are not handled by DPW rather a private dispatcher acts as a clearinghouse for the department. Service requests are sent to the private dispatcher who is responsible for sending the request to the department's Facility Management unit's building and trades section. The building and trades section then assigns a worker to the request. Once the work is completed, relevant work order information is sent back to the dispatcher. As a general practice, the contractor submits monthly reports to DPW regarding work order activity.

Preventative maintenance program. The public works department does not have a formal, extensive preventative maintenance program in place for the buildings it manages. The department told the committee it tries to ensure the routine maintenance of general mechanical equipment and the health and safety issues -- such as emergency evacuation drills - within the buildings it manages. The personal service agreements the department has with its private management companies, however, require each company to develop a preventative maintenance program for the buildings they oversee.

Return to Year 2000 Studies

Return to Table of Contents