Title
Resolution Approving the Selection of Garney Companies as the Construction Manager for the T.Z. Osborne Water Reclamation Facility 56 MGD Upgrade - Package 3 Project and Authorizing the City Manager to Negotiate and Execute a Preconstruction Phase Services Contract Not To Exceed $444,506 with the Selected Construction Manager
Body
Department: Water Resources
Council District: 2
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Steven Drew, 373-7893
Contact 2 and Phone: Mike Borchers, 373-2494
PURPOSE:
In order to utilize the Construction Manager at Risk (CMAR) project delivery method for the T.Z. Osborne Water Reclamation Facility (WRF) 56 MGD Upgrade - Package 3 Project, City Council approval of the selected Construction Manager is requested. Authorization for the City Manager to negotiate and execute a preconstruction phase services contract with the Construction Manager for the purpose of developing a Guaranteed Maximum Price (GMP) is requested as well.
BACKGROUND:
The T.Z. Osborne Water Reclamation Facility 56 MGD Upgrade - Package 3 Project provides for gravity filter improvements, scum system improvements, addition of a new chlorine contact chamber and effluent discharge improvements at the T.Z. Osborne Water Reclamation Facility.
On June 30, 2014, the Water Resources Department issued a Request for Qualification (RFQ) for Construction Manager at Risk Services for the T.Z. Osborne Water Reclamation Facility (WRF) 56 MGD Upgrade - Package 3 Project. The benefits of utilizing the CMAR project delivery method are detailed in the attached memo. This best value contracting program element provides the opportunity to engage the construction contractor during the design phase, who in turn, can provide value engineering and construction insight on complex portions of the proposed work. It also provides for a much more collaborative and open project delivery process with GMP development earlier in the project schedule as compared to Design-Bid-Build. This added benefit allows the opportunity if necessary to adjust the project scope prior to completion of design to meet budget constraints.
Four firms submitted a Statement of Qualification (SOQ) by the August 12, 2014 submission deadline. The firms who submitted a SOQ were CDM Smith, Crowder, Garney, and HDR. A selection committee comprised of internal and external representatives was chosen in order to evaluate and score the SOQ submitted by each firm. The committee evaluated the submissions based on experience, qualifications, project approach, project team members, proposed M/WBE utilization plan, and safety record. The SOQ submitted by Garney received the highest score followed by CDM Smith, HDR and Crowder.
With the selection and approval of a Construction Manager, negotiations to finalize a preconstruction services contract can proceed. Preconstruction services to be provided by Garney include design phase constructability reviews and value analysis, operations focused reviews, plant start-up and commissioning planning during design, collaborative workshops during preconstruction, project execution planning, and procurement (buy-out) planning. Pre-purchase approval of significant process equipment will be requested.
The current schedule calls for the completion of the design phase and development of a GMP by May of 2015. Development of the GMP proposal for construction of the work will be performed in an open-book environment allowing the City to review all pricing information used to establish the GMP. As the Construction Manager, Garney has proposed a lump sum fee of $444,506 to provide Phase 1 - Preconstruction Services and Guaranteed Maximum Price development services. These services will be invoiced monthly based on percent completion.
BUDGET IMPACT:
Funding in the amount of $444,506 is budgeted in the Water Resources Capital Improvements Fund account 515-7056-02.5410. A budget adjustment is needed to use this account.
RECOMMENDATION / ACTION REQUESTED:
The Water Resources Department recommends approval of the selection of Garney Companies as the Construction Manager for the T.Z. Osborne Water Reclamation Facility (WRF) 56 MGD Upgrade - Package 3 Project, authorizing the City Manager to negotiate and execute a preconstruction phase services contract in the amount not to exceed $444,506 with Garney Companies, and approval of the associated budget adjustment.