|
Item 1.F.
|
| City Council Regular | |
| Date: | 08/28/2023 |
| Title: | W.O. 19-42: West End Water Treatment Plant Project, GC/CM Preconstruction Services Contract |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review: | Yes |
| Project Number: | N/A |
RECOMMENDATION
Staff recommends that City Council approve a General Contractor / Construction Manager (GC/CM) preconstruction services contract with Dick Anderson Construction, Inc. (DAC) for W.O. 19-42: West End Water Treatment Plant in the amount of $157,500.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
W.O. 19-42, West End Water Treatment Plant, is in the final design stage of the project. In February 2021, Council approved Resolution 21-10925 allowing the use of alternative project delivery methods as authorized by MCA 18-2-502 for construction of water system projects on Billings’ west end, including the water treatment plant under consideration. The City has elected to move forward with the General Contractor / Construction Manager (GC/CM) contract format since its structure is conducive to ensuring integral City staff involvement in a Project Team arrangement consisting of the City, Engineer (Burns & McDonnell (BMcD)) and GC/CM. Some major benefits of GC/CM contracts are that they bring the contractor, procured through an open public process, on to the Team early to take advantage of their expert contributions to project design and construction means, methods and sequencing. These contributions include identifying opportunities to improve design accuracy and completeness, provide a level of cost certainty to inform budgets, and reduce construction costs and schedule.
In September 2021, City Council approved a water treatment plant preconstruction services contract with Garney Companies, Inc. City staff and Garney worked through predesign to develop a water plant design but were unable to come to an agreement on the final cost of the work to execute a construction contract. Subsequently, staff solicited proposals using the Request for Qualifications and Request for Proposals process. The RFQ and RFP was advertised in the Yellowstone County News on June 16, 23, 30 and July 7, 14, 21, 2023. After 6 weeks of public advertising, the City received one Statement of Qualifications and Proposal from Dick Anderson Construction (DAC). A selection committee evaluated the proposal and recommended DAC as the GC/CM. DAC brings experience with local site conditions and market, vertical construction similar to the water plant structure, and previous experience working with the City of Billings. They are also the contractor that was selected for the reservoir project so they have personnel that are familiar with the site and the selection of DAC will increase coordination between the two projects.
DAC would begin the preconstruction phase of the water treatment plant project by joining the project team to advance BMcD’s 60% design. DAC would work with the team to review major project risks and develop project schedule. Toward the end of 2023, after the design has been advanced to 90% completion by the project team, DAC will present a Guaranteed Maximum Price (GMP) for construction of the project, which City Council may or may not approve at that time. Project construction is anticipated to commence in the spring of 2024.
In September 2021, City Council approved a water treatment plant preconstruction services contract with Garney Companies, Inc. City staff and Garney worked through predesign to develop a water plant design but were unable to come to an agreement on the final cost of the work to execute a construction contract. Subsequently, staff solicited proposals using the Request for Qualifications and Request for Proposals process. The RFQ and RFP was advertised in the Yellowstone County News on June 16, 23, 30 and July 7, 14, 21, 2023. After 6 weeks of public advertising, the City received one Statement of Qualifications and Proposal from Dick Anderson Construction (DAC). A selection committee evaluated the proposal and recommended DAC as the GC/CM. DAC brings experience with local site conditions and market, vertical construction similar to the water plant structure, and previous experience working with the City of Billings. They are also the contractor that was selected for the reservoir project so they have personnel that are familiar with the site and the selection of DAC will increase coordination between the two projects.
DAC would begin the preconstruction phase of the water treatment plant project by joining the project team to advance BMcD’s 60% design. DAC would work with the team to review major project risks and develop project schedule. Toward the end of 2023, after the design has been advanced to 90% completion by the project team, DAC will present a Guaranteed Maximum Price (GMP) for construction of the project, which City Council may or may not approve at that time. Project construction is anticipated to commence in the spring of 2024.
ALTERNATIVES
The Council may:
· Approve a General Contractor / Construction Manager (GC/CM) preconstruction services contract with Dick Anderson Construction, Inc.; or
· Not approve a GC/CM contract. If this project is not completed, the City will be unable to proceed with the plans needed to provide for the present and future drinking water redundancy and capacity needs of City of Billings residents
· Approve a General Contractor / Construction Manager (GC/CM) preconstruction services contract with Dick Anderson Construction, Inc.; or
· Not approve a GC/CM contract. If this project is not completed, the City will be unable to proceed with the plans needed to provide for the present and future drinking water redundancy and capacity needs of City of Billings residents
FISCAL EFFECTS
The W.O. 19-42: West End Water Treatment Plant Project was budgeted in FY24 using water funds. The amount budgeted was $65 million which includes the current preconstruction contract amount of $157,500 and the future construction contract. Adequate funds are available to award this contract.