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Item 1.F.
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| City Council Regular | |
| Date: | 12/12/2022 |
| Title: | W.O. 19-12: West End Reservoir Project, GC/CM Preconstruction Services Contract |
| Presented by: | Debi Meling |
| Department: | Public Works |
| Presentation: | No |
| Legal Review | Yes |
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. 19-12: West End Reservoir Project in the not-to-exceed amount of $278,400.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Identifying and securing an alternate source of treated water for the City of Billings is a priority to the Public Works Department. Through FY23, the City has $119 million in budgeted funding remaining to design and build the projects needed for the new water system on Billings’ west end. Over the next two years, completing design and starting construction is planned for a new water intake, treatment plant, reservoir, and the connecting pipelines.
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 reservoir 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 (HDR Engineering) 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.
The GC/CM will begin the preconstruction phase of the reservoir project by joining the Team to review HDR’s preliminary design. The GC/CM will deliver a project management plan, review major project risks, provide construction feedback that may streamline the design, and develop a project cost model and schedule. The GC/CM will develop progressively more detailed and accurate cost estimates as the design advances. All pricing information, including subcontractor bids, is used by the GC/CM to produce “open book” cost estimates that are evaluated by the Team. The Team will identify opportunities to secure project equipment and materials early to bring greater certainty to the overall project cost and avoid potential price escalation. At the end of the preconstruction phase, the GC/CM will present a Guaranteed Maximum Price (GMP) for construction of the project, which City Council may or may not approve at that time.
Recommending DAC as the GC/CM involved a selection committee evaluating interested contractors using the Request for Qualifications and Request for Proposals process. Statements of Qualifications (SOQs) for this project were also submitted by Big Sky Civil Constructors & Montana Civil Contractors (Joint Venture), Knife River – Billings, and Ames Construction, Inc. After evaluating and scoring the SOQs, the selection committee advanced all four firms and requested proposals from each firm. Final proposal submissions were evaluated on both technical and pricing components. The technical component consisted of an evaluation and scoring of project team and capacity, strategic project approach, and approach to the GC/CM delivery process.
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 reservoir 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 (HDR Engineering) 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.
The GC/CM will begin the preconstruction phase of the reservoir project by joining the Team to review HDR’s preliminary design. The GC/CM will deliver a project management plan, review major project risks, provide construction feedback that may streamline the design, and develop a project cost model and schedule. The GC/CM will develop progressively more detailed and accurate cost estimates as the design advances. All pricing information, including subcontractor bids, is used by the GC/CM to produce “open book” cost estimates that are evaluated by the Team. The Team will identify opportunities to secure project equipment and materials early to bring greater certainty to the overall project cost and avoid potential price escalation. At the end of the preconstruction phase, the GC/CM will present a Guaranteed Maximum Price (GMP) for construction of the project, which City Council may or may not approve at that time.
Recommending DAC as the GC/CM involved a selection committee evaluating interested contractors using the Request for Qualifications and Request for Proposals process. Statements of Qualifications (SOQs) for this project were also submitted by Big Sky Civil Constructors & Montana Civil Contractors (Joint Venture), Knife River – Billings, and Ames Construction, Inc. After evaluating and scoring the SOQs, the selection committee advanced all four firms and requested proposals from each firm. Final proposal submissions were evaluated on both technical and pricing components. The technical component consisted of an evaluation and scoring of project team and capacity, strategic project approach, and approach to the GC/CM delivery process.
ALTERNATIVES
City 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.
FISCAL EFFECTS
The W.O. 19-12: West End Reservoir Project was budgeted in FY23 using water funds. The amount budgeted was $35 million that includes this preconstruction contract amount of $278,400 and the future construction contract. There is sufficient budget to award this contract.