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HomeMy WebLinkAbout04.a. Review draft Position Paper to authorize the General Manager to execute a three-year professional engineering services agreement with Ewing Construction services in an amount not to exceed $390,000 for as-needed bid specification and construction cPage 1 of 3 Item 4.a. DCENTRALSAN MEETINGDATE: JANUARY19,2022 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A THREE-YEAR PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH EWING CONSTRUCTION SERVICES IN AN AMOUNT NOT TO EXCEED $390,000 FOR AS -NEEDED BID SPECIFICATION AND CONSTRUCTION CONTRACT SUPPORT OF CAPITAL IMPROVEMENT PROJECTS SUBMITTED BY: INITIATING DEPARTMENT: MIKE ZUBRZYCKI, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES - CAPITAL PROJECTS REVIEWED BY: NATHAN HODGES, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board of Directors' (Board) authorization is required for the General Manager to execute a professional consulting agreement in an amount greater than $200,000. BACKGROUND Central San's Ten -Year Capital Improvement Program is estimated at $940 million and includes several multiyear and large construction projects. To better manage large and complicated projects, the Capital Projects Division has updated and modernized Central San's front-end bid documents for construction contracts greater than $10 million. Staff has also created equipment contracts that could be reassigned to contractors under the new bid documents or be used directly with Central San for critical or large equipment procurement. These efforts have helped to keep the bid documents up to date and streamline the procurement of equipment for District Projects. Today's bid market continues to grow in complexity for contractors, vendors, and owners. Bids costs have increased due to substantial cost escalations and inflation, especially for construction projects that extend for more than two years. Shortages in materials, delivery issues, and fabrication delays have impacted schedules or project timelines. Central San needs to continue updating its contracts and bid documents to reflect the current bid market environment and reduce risks or costs that can result from delayed January 19, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 4 of 28 Page 2 of 3 construction projects. Therefore, staff issued a formal Request for Proposal (RFP) for a professional contract consultant to assist Capital Projects for bid document and contract review on an as -needed basis. Staff is recommending a minimum three-year term for the consulting services and based on the upcoming workload, the agreement may reach up to $390,000. Several consultants responded to the RFP, and staff selected Ewing Construction Services (ECS) as the top -ranked proposer and best fit for Central San. ECS has worked with staff in the past to assemble construction bid documents to meet the special challenges for projects. This has included: • A guaranteed maximum price contract documents and contracting negotiations for the Pump and Blower Building Seismic Upgrades, District Project (DP) 7291; • General contractor and subcontractor pre -qualification for the Pump Station Upgrades, Phase 1, DP 8436; • Equipment procurement, general contractor and electrical subcontractor pre -qualification, and project review for the Solids Handling Facility Improvements, DP 7348; and • Equipment procurement and new contract bid documents for the Electric Blower I mprovements, DP 100015. The scope of work for ECS will include: • Review and to continue updating Central San's standard bid and procurement documents; • Assist staff in developing standard templates to be used for all District Projects; • Provide project bid document assistance; • Review and update COVI D-19 specifications; • Assist in change order review and documentation; and • Contractor schedule review or other contract administration support for the Capital Program. I n addition, ECS provides third -party review of project durations, construction sequencing, constructability, and estimated construction costs. ECS' experience providing similar support to clients in California and nation-wide make ECS an ideal resource to support Central San. Staff intends to use ECS for all the scope identified above, especially for construction cost estimating and assisting in reducing costs associated with the construction market risks as seen throughout the San Francisco Bay Area. ALTERNATIVES/CONSIDERATIONS Alternative 1 — Do not approve an agreement with ECS and assign these tasks to project designers or with staff. While most engineering consultants have the capabilities to provide these types of services, staff does not recommend taking this approach for the entire Capital Program. Designers will continue to provide engineering estimates and similar services. However, staff recommends an independent party to provide review of the design consultants work for larger projects and could use these services on an as - needed basis for other smaller projects. Alternative 2 — Hire these services on a per project basis, which is not recommended. Program wide as - needed agreements have proven to be efficient in costs and responding to the needs of the Capital Program. I n the past, staff has taken a per project approach and determined that certain services like these are best suited for Central San. January 19, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 5 of 28 Page 3 of 3 FINANCIAL IMPACTS The total cost for the services is expected to reach up to $390,000 over a three-year period, if fully utilized. However, project durations and schedules may change over time and require that the agreement be extended beyond three years in order to complete a project or more. This agreement will be funded by District Projects budgets authorized in the annual Capital Improvement Budget; no additional funds are being requested. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at its January 19, 2022 meeting and recommended RECOMMENDED BOARD ACTION Authorize the General Manager to execute a three-year professional engineering services agreement with Ewing Construction Services in an amount not to exceed $390,000 for as -needed bid specification and construction contract support of Capital Improvement Projects. Strategic Plan Tie -In GOAL THREE: Fiscal Responsibility Strategy 1— Maintain financial stability and sustainability GOAL FIVE: Infrastructure Reliability Strategy 1— Manage assets optimally to prolong their useful life, Strategy 2 — Execute long-term capital renewal and replacement program GOAL SEVEN: Agility andAdaptability Strategy 1— Maintain a safe working environment for employees and the public during the COVID-19 pandemic January 19, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 6 of 28