Recommendation Concerning Utilization of Owner Direct Purchases - Amy Lovoy, Assistant County Administrator
That the Board authorize staff and the chosen design-build entity to utilize Owner Direct Purchases (ODP) for all purchases where utilization of same is to the cost-benefit of the County.
BACKGROUND:
Current policies allow the County to utilize Owner Direct Purchases (ODP) when it is cost beneficial to the County. This is a method whereby the County acts as the pass-through agency for a contractor on subcontracts or other agreements to purchase material . This allows the County to purchase these goods tax-free with the savings passed on to the project. Additional savings may be realized if the County negotiates a cost reduction for the associated reduced premium cost for the project price guarantee.
BUDGETARY IMPACT:
The current estimated savings are about $2,000,000.
LEGAL CONSIDERATIONS/SIGN-OFF:
N/A
PERSONNEL:
N/A
POLICY/REQUIREMENT FOR BOARD ACTION:
N/A
IMPLEMENTATION/COORDINATION:
This process is often accomplished through a series of purchase orders to the supplier with a simultaneous change order to the primary contractor.