STATEMENT OF ISSUE
The Underground Utilities Asset Management Program (AMP) was formulated as a multi-year Capital Improvement initiative to identify, plan for, and systematically track infrastructure assets. The first two years of the AMP will focus on a baseline implementation of an asset and work management system for wastewater treatment plants and lift stations. This initial deployment will be used as a building block by which the AMP could be implemented in other Underground Utility divisions in succeeding years. This project will design and implement state-of-the-art business practices and software to provide information to the City Commission on the basis and priority for maintaining capital assets during the budget cycle. Initial implementation services will involve Wastewater Plants and Lift Stations. Major project milestones and deliverables will include: design of software requirements, evaluation of current software functionality; purchase of configured software, if required; inventory of critical assets; practices-based training; and implementation of the AMP for wastewater plants and lift stations. This request is for City Commission approval of the selection committee’s ranking and selection of EMA, Inc. as the AMP consultant. The City Commission is also being requested to authorize the City Manager or her designee to negotiate and enter into a contract with EMA.
RECOMMENDED ACTION
Option 1: Approve the award of RFP No. 0140-08-VA-RC to EMA, Inc. and authorize the City Manager/designee to negotiate and enter into a contract not to exceed $600,000 for the design and initial implementation of the Underground Utilities AMP, as delineated in the RFP; and, if an agreement cannot be reached on a satisfactory contract with EMA, Inc., then the Commission authorizes the City Manager/designee to attempt contract negotiations with the second-ranked consulting firm.
FISCAL IMPACT
Design and initial implementation of the AMP not-to-exceed cost estimate is $600,000 and will be funded from Project No. 08151 that has a current unencumbered balance as of February 2, 2009 of $605,836. Cost would be less, if current software is found to meet current and future Asset Management requirements.
Mike Tadros, General Manager, Underground Utilities
Anita Favors Thompson, City Manager
For information, please contact: Dennis McGee, Electrical/Instrumentation Control Engineer–Wastewater Treatment, Underground Utilities at extension 1010.
SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES
1. The Asset Management Program (AMP) for Water and Wastewater was first conceived as a Capital Improvement Project during the FY 08 budgeting process, with focus on quality improvement and asset sustainability. A multi-year program, the AMP’s objective is to identify, assess and track infrastructure components. In evaluating conditions, state of operability, and risk management for water and wastewater facilities, City staff aims to take a more proactive approach to maintenance management, CIP budgeting, engineering, operations, and other aspects of the Utility.
2. The development and implementation of the AMP is anticipated to follow a similar structured development that was realized by the Environmental Management System (EMS) program and certification, which was recently achieved.
3. The timeframes for development and implementation of the AMP have been planned such that full development schedules will coincide with completion milestones of the City’s Advanced Wastewater Treatment (AWT) upgrades. With the estimated $200 million costs of the AWT projects, the City will be better positioned to protect, maintain and extend the life of its infrastructure assets.
4. On May 30, 2008, the City issued RFP No. 0140-08-VA-RC Consulting Engineering Services - Asset Management Program. The scope of this project includes design and implementation of new business practices and a new computer system to manage the cost of ownership and extend the useful life of the City’s infrastructure. Initial implementation services will involve Wastewater Plants and Lift Stations. Major project milestones and deliverables will include: completion of software requirements and evaluation; configured software; inventory of critical assets; practices-based training; and implementation of the AMP software for wastewater plants and lift stations.
5. On July 1, 2008, proposals were received from eight (8) firms. The Selection Committee’s preliminary evaluation and ranking of the technical proposals took place on July 22, 2008. The Selection Committee short-listed the top four (4) firms and invited these firms to a structured interview and presentation session. These interviews were conducted on September 5, 2008. On September 10, 2008, the Selection Committee determined its final ranking as follows: (1) EMA, Inc.; (2) Malcolm Pirnie; (3) CH2M Hill; and (4) CDM. This evaluation and ranking considered the technical experience, qualifications, and applicable strategic management and time implementations as submitted by the firms.
6. Subsequent to the final ranking and selection, EMA has provided an engineering estimate of $600,000 for their services for Initial Program Design and Implementation of New Software and Practices. Included with this cost estimate were time schedule and manpower allocation estimates.
7. The AMP design will consider the asset and work management needs of the entire department and the City as a whole, but the initial implementation will focus on the Wastewater Treatment Plants and Lift Stations. Initial system users will include supervisors, managers, and operations and maintenance staff for wastewater treatment plants and lift stations. Underground Utilities anticipates that it will expand the AMP after initial implementation is complete. Future program expansion activities are likely to include full integration of the AMP with the City’s financial systems and the addition of field infrastructure and other utility assets to the program.
8. During the fulfillment of design, and prior to implementation, decisions will be reached concerning the software platform that will be utilized for implementation of the AMP. EMA and City staff will examine existing business process software that is currently utilized, such as computerized maintenance management (“Champs”), financial/purchasing (“PeopleSoft”), geographic information systems (“ESRI/ArcGIS”), and other work software packages. The software decision will consider the capabilities to expand these existing packages to meet AMP objectives, or otherwise consider separate software that is compatible with the existing software.
9. With approval of this agenda item, and subsequent contract negotiation and execution, EMA and the City will proceed with initial design and implementation. Beyond this present scope-of-work, the City will seek additional task orders with EMA to fulfill its objectives and complete the AMP for Wastewater Treatment and Lift Stations. In fiscal year 2010 (FY10), once specific task orders are identified and evaluated, and pending approval of the FY10 Budget (in accordance with previous budget allocations for FY08 and FY09), the City will seek Commission approval to negotiate scope and execute a contract for these remaining task order items. With this anticipated second Commission approval, the City expects to complete its objectives for the AMP, on time and within the approved budget. Recognized at completion, Wastewater Treatment and Lift Stations will then have a functional, operable system for its staff, operations and management.
10. Benefits of the Asset Management Program include more efficient management of assets, systems and components; consolidation and cross-functional interaction between many individual business processes and software; improved operational, business, administrative and people processes; and a more proactive approach to the budgeting, financial planning, and capital improvement processes.
11. City Procurement and the Office of Budget and Policy have reviewed this agenda item and concur that it meets the City guidelines.
CHARITABLE CONTRIBUTIONS
The Request for Proposals was received from eight engineering firms. The award is not based on Charitable Contributions, as solicitation was issued under FL Statute 287.055 (Consultants Competitive Negotiation Act), which is exempted by Charitable Contribution Ordinance.
OPTIONS
Option 1: Approve the award of RFP No. 0140-08-VA-RC to EMA, Inc. and authorize the City Manager/designee to negotiate and enter into a contract not to exceed $600,000 for the design and initial implementation of the Underground Utilities AMP, as delineated in the RFP; and, if an agreement cannot be reached on a satisfactory contract with EMA, Inc., then the Commission authorizes the City Manager/designee to attempt contract negotiations with the second-ranked consulting firm.
Option 2: Do not approve the selection committee’s ranking and selection of EMA, and direct staff to re-advertise the project. This option is not recommended as it will result in delays to implementing the Asset Management Program, which would place the program behind key capital improvement programs such as the Wastewater Division’s Advanced Wastewater Treatment (AWT) projects currently underway at the TP Smith and Lake Bradford Road facilities.
Option 3: Do not approve the selection committee’s ranking, and approve an alternative ranking for the provision of services for the AMP, and authorize the City Manager/designee to negotiate and execute with the top-ranked firm. This option is not recommended as EMA, Inc. received the highest ranking based on the established criteria.
ATTACHMENTS/REFERENCES