STATEMENT OF ISSUE
Early Work Packages (EWP) are a critical component of the Construction Management at Risk (CMAR) process that the City is utilizing to meet the aggressive compliance schedules in the permits issued by the Florida Department of Environmental Protection (DEP). This EWP, detailed under the Facts & Issues section, involves demolition and construction that can be started while the design plans are still being completed. This item is requesting City Commission approval for a Task Order in the amount of $28,339,000 to MWH Constructors (MWHC) to implement EWP 1A for the Advanced Wastewater Treatment (AWT) Improvements at the Thomas P. Smith Water Reclamation Facility (TPS). This item is also to request authorization for the City Manager to approve non-scope change orders to the task order in an amount not to exceed $2,833,900 (10%).
Upon Commission approval, MWHC will start the procurement process, and construction should start in the first quarter of 2009. Per the Commission approval of the MWHC contract on April 23, 2008, MWHC will competitively bid all work in conformance with City Purchasing Policies, including Local Preference consideration and MBE participation. When the design plans are further developed for other construction at TPS, a second Early Work Package 1B will be presented for Commission approval later in 2009.
RECOMMENDED ACTION
Option No. 1: Approve the Task Order for $28,339,000 to MWH Constructors to implement Early Work Package 1A for the AWT Improvements at TPS. In addition, authorize the City Manager to approve non-scope change orders to the task order in an amount not to exceed $2,833,900 (10%). This option is recommended because the City selected MWHC through an RFP process to provide the Construction Management Services for the AWT Improvements Program and MWHC will subcontract the work via a competitive bidding process that meets City Purchasing Policies.
FISCAL IMPACT
The funding for both the $28,339,000 task order and the $2,833,900 for contingency (total $31,172,900) will be from Project No. 08154 (TPS Phase I Improvements), which has an available balance of $54,818,774 as of December 29, 2008. The actual total costs will be determined after MWCH competitively bids the various work packages with oversight and final approval by the City AWT Program Management Team.
Mike Tadros, General Manager, Underground Utilities
Anita Favors Thompson, City Manager
For information, please contact: Jim Oskowis, P.E., Assistant General Manager – Underground Utilities, at 891-1090.
SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES
1. The major work in EWP 1A includes: extensive demolition; site grading; new storage pond construction; acquisition and installation of large yard piping and valves (up to 48” in size); installation of extensive pilings for new structure support; relocation of existing utility and process lines, and aeration system improvements in Train 3.
2. The early work package is essential to meeting the construction compliance schedule in the FDEP Administrative Order for the completion of Phase I of the TPS AWT Improvements by January 28, 2011. On January 29, 2008, the Florida Department of Environmental Protection (DEP) issued the wastewater facility permits for the Thomas P. Smith Water Reclamation Facility (TPS) and the Lake Bradford Wastewater Treatment Plant (LBR). The permits included specific conditions in conformance with the Settlement Agreement executed on December 6, 2006, between the DEP, the City, and the Petitioners (Wakulla Co., Florida Wildlife Federation, and Joseph Glisson) who had challenged the original proposed permits. The State Attorney had later intervened on behalf of the Petitioners and also signed the Agreement.
3. The major permit conditions required construction of advanced wastewater treatment (AWT) improvements at both TPS and LBR and also included compliance schedules for phased construction of the various improvements and for phased reduction of total nitrogen (TN) in the combined treated effluent from the plants.
4. Faced with the fast-track construction schedules stipulated in the permits, Underground Utilities (UG) chose to utilize the project delivery approach known as Construction Management at Risk (CMAR) for implementation of the AWT Program improvements. The CMAR method entails a team or partnership comprised of the Designer, Contractor, and City Staff. The Program Team works together through design to identify and capitalize on opportunities to accelerate the construction schedule and to control the budget. The Contractor’s involvement in the design phase is the main advantage of the CMAR process. The Contractor coordinates with the Designers and City Staff to provide constructability reviews, cost estimates at successive design levels, and identifies and assists in the development of Early Work Packages, such as demolition and purchase of long-lead time equipment, to commence construction before the completion of design.
5. During the past year, UG retained the engineering design services, contracting with Hazen and Sawyer for design of TPS improvements and with Carollo for the LBR design. Additionally, due to the large project scope and associated compliance schedules, UG also retained the environmental engineering consultant CH2MHill to provide program management services with assistance from UG engineering staff. The main task of the CH2MHill Program Manager is to coordinate the efforts of the Program Team.
6. Subsequently, with both designs in the early stage, UG selected MWH Constructors (MWHC) to provide the construction management services, and the Commission approved the Task Order to MWHC for pre-construction services on April 23, 2008. The Commission approval placed emphasis on the contractual requirement that MWHC competitively bid all work in conformance with City Purchasing Policies, including Local Preference consideration and MBE participation.
7. Presently, 30% level designs for both the TPS and LBR improvements have been completed, and the respective designers to the Program Team have submitted 60% level plans for both projects. MWHC has developed an Early Work Package for certain construction at TPS on the basis of the 30% plans. The MWHC cost estimate is $31,172,900 for EWP 1A, and the early work includes extensive demolition; site grading; new storage pond construction; acquisition and installation of large yard piping and valves (up to 48” in size); installation of extensive pilings for new structure support; relocation of existing utility and process lines, and aeration system improvements in Train 3. Program Manager (CH2Mhill) and City staff have reviewed and approved the EWP 1A for the TPS construction. The Program Manager (CH2MHill) and City staff have reviewed and approved the EWP 1A for the TPS construction.
8. Procurement Services and the Office of Budget and Policy have reviewed this agenda item and concur that it meets purchasing and budget guidelines.
CHARITABLE CONTRIBUTIONS
MWHC was awarded the contract by the City Commission on April 23 2008, under Florida Statute 287.055 (Consultants Competitive Negotiation Act) that is exempted from the Charitable Contribution Ordinance.
OPTIONS
Option No. 1: Approve the Task Order for $28,339,000 to MWH Constructors to implement Early Work Package 1A for the AWT Improvements at TPS. In addition, authorize the City Manager to approve non-scope change orders to the task order in an amount not to exceed $2,833,900 (10%). This option is recommended because the City selected MWHC through an RFP process to provide the Construction Management Services for the AWT Improvements Program and MWHC will subcontract the work via a competitive bidding process that meets City Purchasing Policies.
Option No. 2: Do not approve the Task Order to MWHC, but direct staff to bid the entire Early Work Package 1A. Bidding the work will require the development of complete 100% plans that will delay the construction and most likely result in violation of the construction compliance schedule in the FDEP Administrative Order.
ATTACHMENTS/REFERENCES
None.