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HomeMy WebLinkAbout03.a. Review draft Position Paper to authorize the General Manager to execute a professional engineering services agreement with MWH Constructors, Inc. in an amount not to exceed $400,000 for constructability review and related pre-bid services for the S Page 1 of 11 Item 3.a. CENTRAL SAN BOARD OF DIRECTORS vie POSITION PAPER Hill Tim DRAFT MEETING DATE: DECEMBER 10, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TOAUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH MWH CONSTRUCTORS, INC. INANAMOUNT NOTTO EXCEED $400,000 FOR CONSTRUCTABILITY REVIEW AND RELATED PRE-BID SERVICES FOR THE SOLIDS HANDLING FACILITY IMPROVEMENTS, DISTRICT PROJECT 7348 SUBMITTED BY: INITIATING DEPARTMENT: NATE HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE Board of Directors' (Board) authorization is required for the General Manager to execute a professional engineering services agreement in an amount greater than $100,000. BACKGROUND The Solids Handling Facility Improvements, District Project 7348 (solids project), is currently under design and expected to be ready for bid in early 2020. Prior to the bid advertisement, staff will provide a project update at a future Board Meeting. The design of the project is being done by Black and Veatch (B&V) and includes renovation of the following major solids handling processes: • Sludge Blending and Storage • Sludge Dewatering • Multiple Hearth Furnaces (MHFs) • Building and MHFs Seismic Improvements • Air Pollution Control (Wet Scrubbers) • Ash Handling Improvements Due to the size and complexity of this project, staff has determined that third-party construction management and inspection (CM) is required. The scope of work for CM is divided into two parts: December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 3 of 18 Page 2 of 11 1. Pre-bid services that include constructability review, confirmation of construction cost estimate, review of bid documents, and assistance with upcoming general contractor and electrical subcontractor pre-qualifications. 2. Construction management, including inspection services, specialty inspection services, start- up/commissioning services, project documentation, and other related services. Staff issued a formal Request for Proposal on September 9, 2019, to provide third-party construction management that would include pre-bid services, construction management, inspection, special inspection, and other related services. Central San received proposals from eight CM firms: 4Leaf, Inc, Carollo Engineers, CDM Smith, Consolidated CM, HDR, K&B Construction Inspection Services, Inc, Kennedy Jenks, and MWH Constructors. B&V was not allowed to submit as it would be a conflict of interest to perform construction management on their own design.After reviewing the proposals and conducting interviews with the top four ranking firms (Carollo Engineers, CDM Smith, HDR, and MWH Constructors), staff selected MW H Constructors (MW H)for this project. MW H is a national construction firm. With their involvement as CM, they will be not be able to bid on the construction project. Staff received the solids project 90-percent design submittal on November 25, 2019. A construction management review of the submittal is needed at this time in order for B&V to incorporate such input into the final design. Staff is requesting this initial agreement with MWH in order to begin part 1 identified above to complete the pre-bid services. One specific tool that MWH employs in their constructability review is a time lapse Three Dimensional (3D) computer drafting model for the construction progression. Using B&V's 3D design model and construction schedule, MWH will analyze the sequence of construction to detect conflicts and identify potential construction sequence issues. MW H will also review the engineer's estimate and provide a second opinion from a contractor's point of view. With over 700 sheets of drawings and over 1700 pages of technical specifications, staff needs additional support that MWH will provide. Staff will request an increase in the MWH agreement for additional construction support services for the duration of the project upon award of the construction contract. ALT ERNAT IVES/CONSIDERAT IONS The Board could consider the following alternatives or provide other direction: 1. Choose not to authorize the agreement with the selected CM firm at this time and wait until bids are opened for the project construction next Spring; however, this is not recommended as these services are needed now to validate the constructability of the design and confirm the engineer's cost estimate for the State Revolving Fund (SRF) loan application. 2. The Board may direct staff to perform these activities in-house or differently. Staff is currently performing review and oversight of the project. However, MWH, being a contractor, has specialized construction knowledge and experience that is particularly applicable for the Solids Project with the 3D model and schedule analysis. Therefore, this alternative is not recommended. FINANCIAL IMPACTS The agreement with MWH for pre-bid services is estimated to cost up to $400,000. These costs were budgeted under the Solids Handling Facility Improvements on page 182 of the Fiscal Year 2019-20 Capital Improvement Budget. The final CM scope of work and fee is currently being negotiated with MWH and the final cost ceiling will December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 4 of 18 Page 3 of 11 be presented for Board authorization when staff awards the construction contract, which is expected in late Summer 2020. Depending on the services recommended by staff, the total agreement may reach over $6.5 million. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at its meeting on December 10, 2019, and recommended RECOMMENDED BOARD ACTION Authorize the General Manager to execute a professional engineering services agreement with MW H Constructors, I nc. in amount not to exceed $400,000 for constructability review and related pre-bid services for the Solids Handling Facility Improvements, District Project 7348. Strategic Plan Tie-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle, Strategy 2- Facilitate long-term capital renewal and replacement ATTACHMENTS: 1. Presentation December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 5 of 18 Page 4 of 11 I� SOLIDS HANDLING FACILITY IMPROVEMENTS DISTRICT PROJECT 7348 UPDATE AND CONSTRUCTION MANAGEMENT - Engineering & Operations Committee December 10, 2019 Jean-Marc Petit Director of Engineering and Technical Services Edgar J. Lopez Capital Projects Division Manager _ I RECOMMENDED SOLIDS HANDLING FACILITY PROJECT 1 2 7 4 5 8 3 6 I � _ l I _ SLIIOOE BLENOINL/STOAAOE LIMEAOOITION CENTAIf116EOEWATEAINO NIILTICLE HEAQTH AIQE0111RION SLSSEISNVL ASHHANNLINCAND EMEAOENOYS E SYSTEM NANALES E9NT0.0L ALTAOFIT LOADOOT .-UT 2 CENTRAL SAN 1 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 6 of 18 Page 5 of 11 PROJECT STATUS • Key equipment pre-selected KEY EQUIPMENT PRE-SELECTED at 12-20-18 Board meeting. • Received 90%Design r Submittal on 11/25/19, ca„ftfhgesial —Wc!4 = includes 700 drawings and �alio�u pages of technical T- 1,700 "°'°��' from schwing specifications. cakeNnnps(4) Air P* - • Completed Request for • irfkpuYon Proposal(RFP)for third- cwwi — party contract documents L om review and construction Inc. management(CM)services. Vlde,mm pv,nmtnr X..:D,n N.,rn 3 PROJECT SCHEDULE • Send a State Revolving Fund Application update to the State before 12/31/2019. • Complete a third-party contract �• documents review by MWH Constructors(MWH)for CM services by March 2020. Schedule general• and electrical subcontractor informational workshops for r early January 2020. • Pre-qualify general contractors and electrical subcontractors by February 2020. • Complete final contract L ments to be ready foring by end of March 2020. ate Board and requestorization to advertise— 2020. -- -- — a 2 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 7 of 18 Page 6 of 11 SOLIDS PROJECT SITE AND STAGING AREAS R ?�'•'�� Fume •�i H'"Zr Ash L0.3tl61I1 P:� y B0.4jir:n CENTRALSAN ANTICIPATED DESIGN AND CONSTRUCTION SCHEDULE Equipment Pre-Selection Final Design Constructability Review by CM and Contractor IIS Pre-Selection Bid and Award Phase Construction CM Services IJ luipment Pre-Selection:January 2018—September 2018 Final Design Phase:May 2018—March 2020 Constructability Review by CM and Pre-Selection of Contractor:December 2019—March 2020 Bid&Construction Phase:April 2020—December 2023 Construction will require careful coordination with Operations and Maintenance .CENTRALSAN 3 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 8 of 18 Page 7 of 11 ANTICIPATED CASH FLOW FOR PROJECT FORECASTED OVER THE NEXT FIVE YEARS AS OF DECEMBER 20, 2018 $30 M FY 19-20 Budget $25M — for DP 7348: $93.4M* $20 M - - ■rngin—Wr Pmliml—y oespnlOEx Testirg •Cenvd San Manage.en[ $15 M ■[o�:vi�<ne:ioN��svua�+M�,owmeM ■[ennrueden $10 M ■[vuw�•M ra�,c,�wt $5 M 0 0 o FYfi]718 FY20FB•19 FT1019.]U FY?onF71 FY]�]F•]7 FYtOQl•79 * Revised Total Project Cost Estimate is$120-130M** **SRF Loan is estimated up to$99M to fund part of the project `J, CENTRALSAN RUil _ II • CM will manage construction project while Central San stafffocuses on project impact to daily operations and maintenance. • Identify cost efficiencies throughout the project from a constructor's point of view. • Help identify and mitigate project risks. • Provides daily input related to contractor's schedule and view as well as changed management. • Tracks SRF loan required documentation. a 4 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 9 of 18 Page 8 of 11 PROJECT CONSTRUCTION ORGANIZATIONAL CHART CENTRAL SAN PROJECT MANAGEMENTTEAM • Coordinate with Central San staff and all parties • Manage project budgets • Approve progress payments, invoices,change orders(COs),etc. • Major decision maker CENTRAL SAN CONSTRUCTION MANAGEMENT DESIGN ENGINEERS O&M STAFF (MWH Constructors) Services During • Construction Construction Management • Review and Daily Inspection (B&V) implement CONTRACTOR --- Document tracking __ Revshutdowns (submittals,Request for Answer submittals IFI • Operating and Information(RFI),COs,DIRs) AnsweStartup support Maintenance of Safety oversight • Design clarifications Solids Bldg. Point of contact with Review Final O&M Processes Contractor manuals and asset • Commissioning Progress meetings information • Review payments Produce electronic • Manage and review project's record drawings schedule • Coordinate shutdowns • Specialty inspection (Electrical or others) _ • Commissioning �l • Manage project closeout CM SELECTION PROCESS • Staff issued a formal RFP on September 9, 2019 to provide third-party construction management that would include pre-bid services, construction management, inspection, special inspection, and other related services. • Central San received proposals from eight CM firms: 41-eaf, Inc., Carollo Engineers, CDM Smith (CDM), Consolidated CM, HDR, Inc. (HDR), K&B Construction Inspection Services, Inc., Kennedy Jenks, and MWH. Black &Veatch Corporation (B&V) was not allowed to submit, as it would be a conflict of interest to perform construction management on their own design. • After reviewing the proposals and conducting interviews of the top four ranking firms (Carollo Engineers, CDM, HDR, and MWH), staff selected MWH for this project. MWH is a national construction firm and with their involvement as CM, they will be not be able to bid on the construction project. ` io CENTRAL SAN 5 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 10 of 18 Page 9 of 11 WHY MWH tME CONSTRUCTORS? .IIF ui� l n � • With over 700 sheets of drawings and over 1,700 ■, pages of technical specifications,staff needs additional support and MWH has the experienced staff to help. One specific tool that MWH employs in their constructability review is to build a time lapse 3- dimensional(31D)computer drafting model for the construction progression.Using B&V's 3D design model and construction schedule,MWH will analyze the sequence of construction to detect clashes and - identify potential construction sequence issues. +� MWH will also review the engineer's estimate and provide a second opinion from a contractor's point of view. fi- i ry�* 11 Introducing Constructors MWH TODAY CMc by the Numbers • 20%'Owned by Senior Leadership lM%.up • In excess of$1 B Bonding (exclusive of SFPUC a,nt°^0W$2 B in Wet tore Cape al $1B project) mp o.emen[p ajeds • Staff of 2,200+ years delirenng co.0m construcnan fJver management elfPerlM1[e • Stand-Alone Global Construction and CM 10 water/wasaerrater Services Company aI rnta CM Team Treatment Plant New ENR an. Expanslan contracts rn QWastewater T-1-1 Plants /// the Past SVears �� MWH W Sewerage&So[�tl Waste Partnere ���d� n[Wa[er(Was[ewater OCONSTRUCTORS®Water Te Inn nt&De I.nati-Ptante with mo re than cheaa In Laldornla ®Water Transmission Lines N Building a Better World 0 Water sopPiy 60 CMSwater Focused Profass,onals based in LaVarnia 12 6 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 11 of 18 Page 10 of 11 DIGITAL DELIVERY TO SUPPORT SCHEDULE, COST AND CONSTRUCTABILITY REVIEWS Construction BIM Project Review Critical LSuLce q ............... L----- INPUT INPUT FROM DESIGN BIM MANAGE AND AS-BUILT INTEGRATION AND SCHEDULE TEAMS COORDINATE [Enhanced with Mobile and Reality Capture] 13 STAFF RECOMMENDATION Staff recommends that the Board authorize the General Manager to execute a professional engineering services agreement with MWH Constructors in an amount not to exceed $400,000 for constructability review and related pre-bid services for the Solids Handling Facility Improvements, District Project 7348. 14 7 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 12 of 18 Page 11 of 11 QUESTIONS? 15 CENTRALSAN 8 December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 13 of 18