HomeMy WebLinkAbout03.a. Execute Contracts with Procore and Protiviti Construction Management Software and Authorize Transfer of $950,000 from CIP Contingency FundPage 1 of 13
Item 3.a.
�G CDrrEN1 RAL, BOARD OF •'
CENTRAL CONTRA COSTA SANITARY DISTRICT POSITION PAPER
DRAFT i
MEETING DATE: FEBRUARY5, 2025
SUBJECT: REVIEW DRAFT POSITION PAPER TO ADOPT RESOLUTION NO. 2025-
XXX, MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER
TO EXECUTE CONTRACTS WITH PROCORE AND PROTIVITI FOR THE
IMPLEMENTATION OF CONSTRUCTION AND CONTRACT MANAGEMENT
SOFTWARE FOR CAPITAL PROJECTS; AND AUTHORIZE THE
TRANSFER OF $950,000 FROM THE CAPITAL IMPROVEMENT BUDGET
CONTINGENCYTO FUND THE PROJECT
SUBMITTED BY:
INITIATING DEPARTMENT:
EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES -
DIVISION MANAGER CAPITAL PROJECTS
REVIEWED BY: GREG NORBY, DEPUTY GM - ENGINEERING AND OPERATIONS
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
Board of Directors' (Board) authorization is required to transfer funds above $500,000 in the Capital
Improvement Program. Staff believes that Procore will meet Central San's needs based on previous
competitive bids, experience with several similar software systems, and the software is commonly used
and preferred by many of Central San's contractors and consultants. Therefore, a resolution by the Board
is required as an exemption to Central San's procurement policies.
BACKGROUND
The Capital Improvement Program and Budget Improvements, District Project (DP) 8251 is listed on
page 292 of the Fiscal Year (FY) 2024-25 Budget. This project funds improvements to the Capital
Program and project reporting tools, including standardizing procedures, specifications, and project
management software systems.
Central San's current FY 2024-25 Capital Improvement Budget (CI B) has over 80 projects, with several
large projects that exceed $30 million in construction value. The 10-year Capital Plan has an estimated
total spending of approximately $1 billion. Implementation of a construction and contract management
system is necessary for efficient, standardized construction project management, to provide visibility into
contract status, and to streamline project management functions and processes.
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Several years ago, Central San initiated a project with e-Builder to create a software system that could be
used for planning, project management, and construction management. e-Builder was selected based on a
formal request for proposals by several software implementors. It was piloted and used for several years
until 2020, when staff decided to end the service for several reasons, including the Oracle transition and
less -than -desired results in construction management. Since then, Oracle has been implemented for
project budgeting and reporting and Procore has been used for several large-scale projects successfully.
Procore is widely used by most of the mid- to large -size contractors and engineering firms that Central San
relies on for large capital projects delivery. Central San has been piloting the software through licenses
from the design consultant firms working on District projects and has used it for successfully completed
projects such as the Pump Station Upgrades, Phase 1, DP 8436 and others. At the time e-Builder was
selected, Procore was considered and rejected as it did not provide services other than construction
management. However, it was ranked as a top construction management tool and has been used
successfully by Central San.
Central San uses Oracle products for project and program budgets, creating task -level accounts,
estimating spending projections, financial reporting, and other critical processes or reporting. Construction
management has been performed using Microsoft products and Procore. The costs for Procore have
been paid through the consultant services and construction management fees for each project.
The need for a standardized construction management tool for the Capital Program still exists today, and
staff is recommending Procore based on previous experience, and the fact that it is preferred by many of
the contractors and vendors with whom Central San conducts business. The benefits of purchasing
Procore include a single source and document standardization, direct access to the data and control
functions, archiving, and more. Staff has used many different software systems throughout the years under
consultant contracts and believes Procore is the one system that can best meet the Capital Program
needs for construction management.
Currently, Central San does not have software for contract management or for billing purposes. Oracle has
the ability to perform vendor billing; however, it is not recommended for Capital Projects due to the nature
of the payment process and detailed reviews. Since Procore is construction -based, the software provides
the ideal review and invoice processing required for Central San projects, and can perform contract
management for project billing and monitoring with no additional software costs.
Procore is a tool that can interactively organize and report contract information within projects, enabling
Central San's management and project managers to track real-time status, view contract performance on a
continual basis, process invoices so that vendors are paid on time, and report on the Capital Program with
better accuracy.
The IT Division has been assisting with and reviewing the implementation of Procore with the Capital
Projects staff. Overall, IT is in agreement that the software is a good choice for Central San based on the
needs of Capital Projects and the following reasons:
• Procore is a leading provider of fully integrated, cloud -based construction management software;
• The software is used by similar public agencies locally and nationally;
• Procore meets Central San's software requirements;
• The proposed team has experience implementing the software with public agencies and experience
integrating with Oracle;
• The implementation approach includes meeting with staff and ensuring that workflows and approval
processes are adopted in the software; and
• Procore provides training and support to ensure stakeholder and user full buy -in.
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ALTERNATIVES/CONSIDERATIONS
(1) Continue the practice of paying for construction management software through individual projects; (2)
re-evaluate implementation with other software systems; or (3) have staff implement the software internally
without the use of a Procore consultant. Staff does not recommend any of these alternatives. Entering into
an agreement with Procore is the most cost-effective and practical solution for construction and contract
management for Central San projects.
FINANCIAL IMPACTS
Central San has negotiated a scope and budget not to exceed $800,000 for the implementation services,
which includes Procore for configuration and integration services with Protiviti. In addition, Procore
requires an annual licensing fee of approximately $150,000. The agreement proposed includes two years
of licensing fees totaling $300,000, which will be budgeted through the Operating Budget since it is a
maintenance cost. Staff time is estimated at $150,000 for implementation. Overall, the financial impact of
the agreement is $1,250,000.
To fund the implementation, $950,000 is needed for the Project. There is $1,450,000 available in the CI
contingency account; therefore, a transfer is needed, resulting in a contingency account balance of
$500,000. The C I B contingency account aims to cover the expenses of new projects not adopted at the
time of the Budget or project overruns due to new scope or other justifications. I n this case, the
implementation of Procore was not budgeted, and staff is recommending doing so now while several
major projects are in progress that can migrate to Central San's Procore account and other benefits.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at its meeting on February 5, 2025 and
recommended
RECOMMENDED BOARD ACTION
Staff recommends the following:
1. Adopt Resolution No. 2025-XXX making findings and authorizing the General Manager to execute
contracts with Procore and Protiviti for the implementation of construction and contract management
software used for Capital Projects; and
2. Authorize the transfer of $950,000 from the Capital Improvement Budget contingency to fund the
project.
Strategic Plan Tie -In
GOAL ONE: Customer and Community
Strategy 1— Deliver high -quality customer service
GOAL TWO: Environmental Stewardship
Strategy 1 - Achieve compliance in all regulations
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
GOAL SIX: Infrastructure Reliability
Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program
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GOAL SEVEN: Innovation and Agility
Strategy 2 - Implement organization -wide optimization
ATTACHMENTS:
1. Proposed Resolution
2. Presentation
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Attachment 1
RESOLUTION NO. 2025-
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
AUTHORIZING THE CAPITAL IMPROVEMENT PROGRAM TO IMPLEMENT
PROCORE SOFTWARE FOR CONSTRUCTION AND CONTRACT MANAGEMENT
FOR A THREE-YEAR TERM
WHEREAS, Central San's capital program has many significant projects that require
and can benefit from a standardized construction management software system; and
WHEREAS, Central San has the Capital Improvement Program and Budget
Improvements, District Project (DP) 8251 aimed to standardize, upgrade, and improve
management systems for the Capital Improvement Program; and
WHEREAS, Central San has undergone several software changes and implementations
to improve financial and project -based budgeting and reporting, including Oracle
Enterprise Resource Planning and Enterprise Performance Management; and
WHEREAS, e-Builder has been decommissioned, and project budgeting or
performance management is currently accomplished through Oracle products; and
WHEREAS, Central San has determined not to continue the use of e-Builder for
construction management as the software did not meet the standards or expectations of
the Central San construction managers through years of experience and projects and its
use is diminishing amongst the contracting community; and
WHEREAS, Oracle does not currently meet the requirements or have a standard
construction management software system suitable to implement at Central San; and
WHEREAS, Procore is widely used in the construction industry and Central San has
extensive experience with the software under several past and current projects; and
WHEREAS, it is in the best interest of Central San to standardize construction
management by implementing Procore based on its extensive use throughout the
contracting community and staff's extensive experience with past competitive bids, testing
of various software systems, and in-house practices; and
WHEREAS, it is more cost effective to implement Procore on a District -wide basis than
to pay incremental consultant services to manage the software on individual projects; and
WHEREAS, there are several major construction projects ongoing, including the Solids
Handling Facility Improvements, Phase 1A, DP 7348, that are currently using Procore;
and
«=101.0-PI&IMMI
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Central Contra Costa Sanitary District
Resolution No. 2025-
Page 2 of 3
WHEREAS, it is appropriate to implement Procore on a District -wide basis as soon as
possible in order to consolidate the project(s) data within Central San's ownership and
standardize such data for historical archiving purposes; and
WHEREAS, staff has completed several competitive solicitations for software within the
past decade and Procore ranks as the top construction management tool for Central
San construction managers and is extensively used by contractors and consultant firms.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra
Costa Sanitary District (Board) as follows:
THAT the Board authorizes staff to proceed with the procurement, implementation and
standardization of Procore for capital project construction and contract management for
Central San projects without giving further notice for formal bids; and
THAT the General Manager is authorized to execute a three-year agreement with
Procore using funds from the Capital Improvement Program and Budget Improvements,
DP 8251 to procure the software and the Operating Budget for licensing fees for use for
any Central San capital project; and
THAT the General Manager is authorized to execute an agreement with Protiviti, a
licensed Procore implementor and integration service to Oracle; and
THAT the Board will review the status of the procurement and implementation of Procore
and receive notice when future extensions or agreements are conducted for these
services.
PASSED AND ADOPTED this 22nd day of February 2025, by the Board of Directors of
the Central Contra Costa Sanitary District by the following vote (4/5 vote required for
passage):
AYES:
Members:
NOES:
Members:
ABSTAIN:
Members:
Mike McGill
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
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Central Contra Costa Sanitary District
Resolution No. 2025-
Page 3 of 3
COUNTERSIGNED:
Katie Young, CPMC, CIVIC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
J. Leah Castella, Esq.
Counsel for the District
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Attachment 2
February 5, 2025
Implement Procore
for Construction and
Contract Management
of Capital Projects
Engineering & Operations
Committee Meeting
Edgar I Lopez, P.E.
Capital Projects Division Manager
Background
I r-
Capital Program ramp up started in 2017:
Completed a Comprehensive Wastewater Master Plan for all
aspects of Central San's business and infrastructure needs.
Embarked on a Program Management Informational System
(PMIS) using e-Builder.
r,inro than -
Implemented Oracle for Enterprise Resource Planning (ERP)
and Enterprise Performance Management (EPM) for Capital
Projects.
Stopped using e-Builder roughly in 2021.
Currently using Procore for construction management.
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WHY IN 2017?
CAPITAL IMPROVEMENT PLAN
The Comprehensive Wastewater Master Plan encompasses a $1.8 billion QM6 dollars) 20-year capital improvement program
(C1P) for the collection system and treatment plant, with $873 million of capital improvements within the first ten years. These
short-term and longterm investments in our systems align with our mission to always protect public health and the environment
and maintain the excellent service levels our customers expect from Central San_
$120.000.000
$100.000.000
$80.000.000
$60.000.000
$40.000.000
$20.000.000 -
$0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20M 2031 2032 2033 2034 2035 2036 2037
■ Treatment Plant ■ Collection System Recycled Water ■ General Improvements
31
FOUR PROPOSALS RECEIVED
e-Builder
Integration of three software
programs
Oracle
PMWeb
4I
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ASSET LIFECYCLE
o
City works°
EmpowenngGlS"
v Maintain
Buildera
• Computerized Dispose
Maintenance - Program
Management Management
System (CMMS) Information
System PMIS,
Operate bkhhh.,)
Supervisory Control and
Data Acquisition (SCADA)
system
scada
5
e-Builder Intent to Today's Systems - Projects
Software Needs
System In Use or
Planned
Construction Management
Procore
Capital Plan Budgeting (10-Year Plan)
Oracle EPM
Program and Project Performance
Oracle EPM
Program and Project Budgeting and Reporting (CIB)
Oracle ERP - Projects
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Today's Systems - Projects Continued
Software Needs
System In Use or Planned
Project Scheduling
Procore / Microsoft Projects
Planning or Design Documents and Processes
Microsoft Products
Records / Asset Handover and Processes
Laserfiche / GIS / TBD
Resource Management
Oracle ERP - Projects
Today's Systems - Projects Continued
Software Needs
System In Use or Planned
Approvals
Oracle ERP and Docusign
Document Management
Procore / Ebix / Oracle /
Microsoft Products
Bidding
PlanetBids
Permit Data Base
Oracle Permits / GIS
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Procore Implementation is in the
Best Interest of Central San
Based on the following:
Staff's previous experience with the competitive bid process
and use of many similar software systems available in the
market.
Procore is widely used in the construction industry and with
many of Central San's contractors, consultants, and vendors.
Central San has several major projects ongoing that utilize
Procore and implementation is best suited now.
Cost-effective compared to paying construction management
consultants for the services, including additional benefits such
as standardization and contract management.
PROCORE'
Procore Implementation Requires
Integrator Services- Protiviti ►�
Procore estimated costs of $190,000.
Protiviti estimated costs of $510,000.
Contract contingency at $100,000.
IL
Procore annual fees start next year at roughly $150,000 as
Operating expense. 0 W
Integration with Oracle for contract management:
Invoicing and review progress payments.
Managing contracts in Procore with Oracle providing data. -°-
Provide improved reporting with accurate information
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Recommended Board Action:
Staff recommends the following:
1. Adopt Resolution No. 2025-XXX making findings
and authorizing the General Manager to execute
contracts with Procore and Protiviti for the
implementation of construction and contract
management for Capital Projects; and
2. Authorize the transfer of $950,000 from the
Capital Improvement Budget contingency to fund
the project.
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