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Home My WebLink About13. Authorize agreement with MWH Constructors, Inc. for constructability review and related pre-bid services for Solids Handling Facility Improvements, DP 7348 Page 1 of 11 Item 13. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: DECEMBER 19, 2019 SUBJECT: 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 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 Roger S. Bailey General Manager 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 bidding, staff will provide a project update and request approval to advertise by the Board at a future Board Meeting. The project design is being done by Black and Veatch Corporation (B&V) and includes major renovation of the following solids handling processes: • Sludge Blending and Storage • Sludge Dewatering • Multiple Hearth Furnaces (MHFs) December 19, 2019 Regular Board Meeting Agenda Packet- Page 213 of 260 Page 2 of 11 • 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 (CM) is required. The CM scope of work is divided into two parts: 1. Pre-bid services that include review services for constructability, construction cost estimate, bid documents, and assistance with pre-qualifications of contractors and specialized trades. 2. Construction management, including inspection services, specialty inspection, start- up/commissioning services, project documentation, and other related services during construction. Staff issued a formal Request for Proposal on September 9, 2019 to provide third-party CM 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, Inc., K&B Construction Inspection Services, Inc., Kennedy Jenks, and MWH Constructors, I nc. 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 ranking firms (Carollo Engineers, CDM Smith, HDR, Inc., and MWH Constructors, Inc.), staff selected MWH Constructors, Inc. (MWH)for this project. MWH is a national construction and global firm. With their involvement as CM, they will be not be able to bid on the construction contract. 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 agreement now 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 software model that can simulate the construction as projected by the designer. MWH can integrate B&V's design model and construction schedule to analyze the sequence of construction to find building conflicts and identify potential 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 drawings and 1,700 pages of technical specifications, staff needs additional support that MW H can provide. Staff will request an increase in the MWH agreement for additional construction management services for the duration of the project at the time of award of the construction contract. ALTERNATIVES/CONSIDERATIONS The Board could consider the following alternatives or provide other direction: 1. The Board may 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 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, MW H, being a contractor, has specialized construction knowledge and experience that is particularly applicable for the Solids Project with the software model and schedule analysis. Therefore, this alternative is not recommended. December 19, 2019 Regular Board Meeting Agenda Packet- Page 214 of 260 Page 3 of 11 FINANCIAL IMPACTS The MW H agreement 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 MW H and the final cost ceiling will 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 approval of the subject. RECOMMENDED BOARD ACTION Authorize the General Manager to execute a professional engineering services agreement with MW H Constructors, I nc. 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. Strategic Plan re-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 19, 2019 Regular Board Meeting Agenda Packet- Page 215 of 260 SOLIDS HANDLING FACILITY IMPROVEMENTS DISTRICT PROJECT 7348 UPDATE AND CONSTRUCTION MANAGEMENT - - Board Meeting December 19, 2019 Jean-Marc Petit Director of Engineering and Technical Services Edgar J. Lopez Capital Projects Division Manager RECOMMENDED SOLIDS HANDLING FACILITY PROJECT 1 2 7 4 5 8 3 6 f ®r" lit 'e _ r J —J iiQ SLUDGE BLENDING/5-GE LIME.IDDITIOX MULE HEARTH AIRPOLLUTION SCBSEISMH A-- EMERGENCY URGE SYSTEM NANACES CONTADL AEFAOFIT LDW -DUT Z CENTRAL SAN 1 LARGE AND COMPLEX PROJECT • Safety oversight I • Construction coordination and r A sequence • Shear walls and seismic modifications(building and incinerators) J • New wet scrubbers • Commissioning new systems and operating existing facilities Solids Conditioning Building (SCB)contains critical " equipment not scheduled for +. replacement(cogeneration system, boilers,scum thickener,and others) :e 3 CENTRAL SAN PROJECT STATUS • Key equipment pre- selected at 12/20/18 KEY EQUIPMENT PRE-SELECTED Board meeting • Received 90% Design Cenhfuge9(4) Submittal on 11/25/19, homAnd"u separation includes 700 drawings Technologies. c. and 1,700 pages of Cake Pumps(4) T' hom Schwing technical specifications BiosPL Alr Pollution • Completed Request for Consent Proposal (RFP)for third- v'o le"°m party contract documents "lemationpt.Inc review and construction management(CM) u cemoe.ao,aoiseoamn+rr:• Q`. services 1. 4 CENTRAL SAN 2 PROJECT SCHEDULE • State Revolving Fund(SRF)Loan -�•*' Application update before 12/31/2019 - - • Complete contract documents review by MWH Constructors, Inc. I 1 ly (MWH)by March 2020 • Schedule contractor's informational workshops for early January 2020 • Pre-qualify general contractors, electrical subcontractors,and possibly others by February 2020 -- • Complete final contract documents to be ready for bidding by April 2020 Update Board and request authorization to advertise project a s SOLIDS PROJECT SITE AND STAGING AREAS 0. NyPpwer � s j r ser area *: �} •' Sludge Blending Tanks(SBT) CENTRAL SAN 3 ANTICIPATED DESIGN AND CONSTRUCTION SCHEDULE Equipment Pre-Selection �J Final Design Constructability Review by CM and Contractor Ili Pre-Selection Bid and Award Phase . Construction I...�....' CM Services V Equipment 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 and Construction Phase:April 2020—December 2023 Construction will require careful coordination with Operations and Maintenance Fiscal Year(FY) ` J CENTRAL SAN ANTICIPATED CASH FLOW FOR PROJECT FORECASTED OVER THE NEXT FIVE YEARS AS OF DECEMBER 20, 2018 $30 M FY 2019-20 Budget $25 M for DP 7348: $93.4 Million (M)* $20 M ■rngineering Preliminary E m1plPiNg Tes5ng Central San Manage.ent $15 M ■ranwlteat Dm1gnlranstrutllm Mwegemem ■ranua,�uan $10 M _ _ ■tgd"a Mrrt $5 M 0 0 6 0 }Y IOIY I W019 FT]11i9 J0 FY POM li FY 102111 FYIa]11:5 * Revised Total Project Cost Estimate is approximately$130 million(update to be provided at a future Board workshop),of which SRF Loan is expected to fund up to$99 million. a CENTRAL SAN 4 ice~ r is� 6z IM L� II ■ -ilk ` 1 -� —, II II II • Manage construction project while Central San staff focuses 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. • Provide daily input related to contractor's schedule and changes. • Track SRF loan required documentation. 9 PROJECT CONSTRUCTION ORGANIZATIONAL CHART CENTRAL SAN PROJECT MANAGEMENT TEAM • 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 OPERATIONS& (MWH Constructors,Inc.) Services During Construction MAINTENANCE Construction management (Black&Veatch Corporation) (O&M)STAFF Safety oversight CONTRACTOR --- Daily inspection Review submittals • Review and -- Answer requests for implement Document tracking information • Point of contact with Start u ort shutdowns contractor P support • Operating and Design clarifications of Conduct progress meetings Review final O&M manuals uilding Review paymentsand asset information es Manage and review Produce electronic record A�Mai,ntenance sioning contractor's schedule drawings • Claims or dispute services • Coordinate shutdowns • Specialty inspection (electrical or others) • Start up and commissioning _ • Manage project closeout documentation `•10 • SRF records compliance �� 5 CM SELECTION PROCESS • Staff issued a formal RFP on September 9, 2019 to provide third-party CM 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 (CDM), Consolidated CM, HDR, Inc., 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 CM on their own design. • After reviewing the proposals and conducting interviews of the top-ranking firms (Carollo Engineers, CDM, HDR, and MWH), staff selected MWH for the project. MWH is a national and global construction firm and with their involvement as CM, they will not be able to bid on the construction contract. rCENTRAL SAN I I i k � WHY MWH CONSTRUCTORS? With over 700 drawings and over 1,700 pages of technical specifications,staff needs additional review support and MWH has the experienced II I staff to help. • One specific tool that MWH employs in their constructability review is a time lapse software model that can simulate the construction as projected by the designer.MWH can integrate �6+ B&V's design model and construction schedule IP to analyze the sequence of construction to find building conflicts and identify potential sequence issues. MWH will also review the engineer's estimate - - and provide a second opinion from a contractor's point of view. iz 6 Introducing MWH Constructors MWH TODAY CM:., by the Numbers I • 20%1 Owned by Senior Leadership • In excess of$1 B Bonding (exclusive of SFPUC has.. $ B fn Wet lnfrasuuaure Capital $1 B project) rraprovement pr pd5 • Staff of 2,200+ 74 years deliserirg complex construction Ower managemeMe%penenre • Stand-Alone Global Construction and CM 10 wa[erlwasterrater Services Company [aliform CAA Team Treatment Plans New. ma^ate Expanslon contracts m wast ra etor rroatmvnt Planes the past Syears Sawcraga a Solrtl Waste l Partnered wa /Ztas[ rer DCONSTRUCTORS G)Water Treatment a Dosalina[inn Plains x rh-we thin cbe ns In Lallf"la ®water Transmission pinus Building a Better World mwatnr sulll, 60 -- or roused Professiwsals �`•' based in[alifomia 13 DIGITAL DELIVERY TO SUPPORTCOST AND CONSTRUCTABILITY REVIEWS Construction BIM Project Review ■ 4� f Critical to Succes 17... 4 L--- -- INPUT FROM DESIGN BIM MANAGE AND AS-BUILT INTEGRATION AND SCHEDULE TEAMS COORDINATE [Enhanced with Mobile and Reality Capture] 14 7 STAFF RECOMMENDATION Staff recommends that the Board 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 Solids Handling Facility Improvements, District Project 7348. QUESTIONS? ri L % H.. ` 16 8