REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
June 23, 2026
FROM
NOEL CASTILLO, Director, Department of Public Works - Transportation
SUBJECT
Title
Amendment to Job Order Contracts for Pavement Maintenance in the San Bernardino County Valley Area
End
RECOMMENDATION(S)
Recommendation
Approve Amendment No. 1 to Job Order Contracts, increasing each contract amount by $4,750,000, from $1,500,000 to a total not-to-exceed amount of $6,250,000 each, with no change to the contract term of February 10, 2026 through February 9, 2027, to meet a higher than anticipated demand for pavement maintenance throughout the Valley region, for the following contractors:
1. Pavement Coatings Co., Contract No. 26-78
2. SJD&B, Inc., Contract No. 26-79
3. PUB Construction, Inc., Contract No. 26-80
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Ensure Development of a Well-Planned, Balanced, and Sustainable County.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost). The Department of Public Works (Department) is funded by Gas Tax revenue, fee revenue, and other local, state, and federal funding. Approval of Amendment No. 1 will increase the not-to-exceed amount of Contract Nos. 26-78, 26-79, and 26-80 by $4,750,000, from $1,500,000 to $6,250,000 each. Costs for work performed under these contracts will be paid from the applicable project or program budgets identified for each job order. Sufficient appropriation and revenue are included in the Department’s 2025-26 Road Operations budget (6650002000) and will be included in future recommended budgets.
BACKGROUND INFORMATION
The Department uses job order contracts (JOCs) to efficiently deliver pavement maintenance work throughout the County. Job order contracting allows the Department to issue individual job orders for approved pavement maintenance tasks using competitively bid unit prices and adjustment factors, rather than conducting a separate procurement for each individual repair or maintenance project. The JOCs were established as competitively bid, firm fixed-price, indefinite-quantity contracts authorized under Public Contract Code section 20128.5. Each contract allows the County to issue individual job orders for pavement maintenance work based on the contract’s Unit Price List, Standard Specifications, Standard Plans, Special Provisions, and applicable adjustment factors. Each contract does not require the County to issue a minimum amount of work.
On February 10, 2026 (Item No. 33), the Board of Supervisors approved JOCs for pavement maintenance in the San Bernardino County Valley area, awarding Contract Nos. 26-78, 26-79, and 26-80 to Pavement Coatings Co., SJD&B, Inc., and PUB Construction, Inc., respectively. Each JOC was approved in an amount not-to-exceed $1,500,000, for the contract term of February 10, 2026 through February 9, 2027.
Public Contract Code section 20128.5 establishes the JOC award threshold at $3 million in 1998 dollars and provides for an annual adjustment factor based on the California Consumer Price Index (CPI). Pursuant to the State of California Department of Industrial Relations, the January 1998 CPI index value is 161 and the January 2026 index value is 347.69, representing a 116% increase to the threshold, or approximately $6.48 million. The proposed JOC maximum value of $6.25 million is within this allowable range.
Since the award of the JOCs, the Department has experienced higher than anticipated demand for pavement maintenance and rehabilitation work throughout the Valley region. Increased deterioration resulting from storm events, aging infrastructure, and emergent maintenance needs have accelerated the pace at which individual job orders are being issued, with cumulative job order values approaching the current maximum contract amounts sooner than projected.
To ensure continuity of essential roadway maintenance activities and to avoid delays in responding to safety-critical pavement conditions, the Department recommends approval of Amendment No. 1 to Contract Nos. 26-78, 26-79 and 26-80. Amendment No. 1 will increase the not-to-exceed amount of each contract by $4,750,000, from $1,500,000 to $6,250,000 per contract. For the five contracts, this amendment represents a cumulative increase of $23,750,000 and will increase the aggregate not-to-exceed contract amount from $7,500,000 to $31,250,000.The additional capacity will allow the County to continue issuing job orders necessary to meet ongoing pavement maintenance needs within the boundaries of the original contract term and in accordance with the competitively bid unit price structure established under the JOC program.
Approval of Amendment No. 1 will not change the contract term or the contractor’s obligation to perform work in accordance with the contract documents. All other terms and conditions of the contracts will remain in full force and effect. Without an increase to the maximum contract value, the Department will be unable to issue additional job orders necessary to maintain safe roadway conditions during the remainder of the contract term. This amendment does not modify any other terms or conditions of the original agreement.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Aaron Gest, Deputy County Counsel, 387-5455) on June 11, 2026; Purchasing (Dylan Newton, Buyer III, 387-3377) on May 20, 2026; and County Finance and Administration (Eduardo Mora, Administrative Analyst, 387-4376) on June 3, 2026.