TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Tony Olmos, Public Works Director
Joe Parco, City Engineer
SUBJECT:Title
Award of Professional Service Agreements for On-Call Construction Management and Inspection Services (RFP #1032-15) to Psomas, Civil Source, Inc. and AndersonPenna Partners, Inc. in the Amount of $400,000 for a Three Year Term for Each Firm and Direct Staff to Incorporate Past City Council Restrictions from Previously Approved On-Call Engineering Services Agreements (Public Works Director Olmos).
APPROVE
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Recommended Action
RECOMMENDATION:
It is recommended that the City Council:
1. Award Professional Service Agreements for On-Call Construction Management and Inspection Consultant Services to Psomas, Civil Source Incorporated and AndersonPenna Partners Incorporated in the amount of $400,000 for a three year term for each firm,
2. Authorize the City Manager to execute agreements,
3. Direct staff to not issue individual task orders beyond $100,000 without City Council approval,
4. Direct staff to not issue cumulative task orders exceeding half the contract amount without City Council approval, and
5. Direct staff to place an ongoing item on the City Council agenda (Receive and File) to report on the ongoing issuance of task orders.
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FISCAL IMPLICATIONS:
Payment for work associated with all three agreements will be funded by previously approved projects in the Capital Improvement Program (CIP).
BACKGROUND:
From fiscal years 2006/07 to 2011/12, City Council approved an average of $6 Million per year in CIP funding. From fiscal years 2012/13 to 2014/15, City Council approved a total of $59 million in new CIP funding, averaging $19.7 million per year. The major reason for this increase was the addition of significant water, wastewater, and street projects including Sepulveda Widening at $19 million. Without including Sepulveda Widening, the City currently has a carryover amount of approximately $22 million with approximately $10 million in proposed funding for FY15/16.
The Public Works Engineering Division does not currently have sufficient in-house resources to manage the construction of the carryover and proposed CIP projects. In assessing workload and available resources, staff has determined that in order to make significant progress towards completion of the carryover and proposed CIP projects, it is necessary to move into a full Project Management Model. Staff will be in charge of managing and directing a team of design and inspection consultants, who are on-call and ready to provide construction management and inspection services. The City's current Public Works Director and City Engineer have extensively used on-call contracts at their prior places of employment, including County of Orange, Huntington Beach, Brea, Santa Ana, Carlsbad, and Rancho Santa Margarita and recommend the use of this model in Manhattan Beach.
DISCUSSION:
Throughout the years, Public Works Engineering would typically design a number of projects in house and utilize project specific consultants for the balance of the work. In addition, Engineering staff would also manage the construction contracts. This model worked fine when the workload was not as large, but this has put a strain on project delivery as the project workload has grown. Within the past couple of years, staff has cut back on the number of projects that are designed and inspected in house, and has increased the use of project specific consultants for design, construction management and inspection services.
To procure a project specific consultant agreement, the entire process from issuance of the initial RFP to Council approval and execution of the contract typically takes between 12 to 16 weeks (Attachment 4). Aside from the time it takes to develop an RFP, execution of all the contract agreement requirements including insurance also takes considerable time. To streamline the process, many local agencies have turned to the use of on-call consultants.
On-call consultants are essentially contracts with qualified engineering firms that provide engineering services within a defined general scope of services; in this case the services consist of construction management and inspection services. Once staff is ready to initiate the inspection and construction management of a CIP project, one or more of the on call firms would be provided a project specific scope of work and will be asked to submit a fee proposal for the task(s). The firm that demonstrates that they can immediately meet the project needs and has all of the necessary resources available will be assigned the project. Prior to approval of each task order, staff would ensure that the project fee schedule is within project budget and meets industry's best practices. Staff has identified the potential CIP projects that the selected consultants could be assigned should City Council approve the agreements (Attachment 5). Although the cumulative amount of all three contracts seems high, it should be noted that the City already spends significant funds on project specific design and inspection services as a matter of regular practice. Having on-call consultants simply expedites initiation of the projects.
The scope of work for this agreement will consist of construction management and inspection services for selected CIP projects on an as needed basis. Some specific work items includes: observation of work in progress for conformance with plans and specifications and reporting of defects and deficiencies as well as monitoring performance as to cost, quality and schedule; maintaining a complete and current record of Project contracts, drawings and specifications, progress photos, testing and inspection reports, submittal logs, etc.; perform material and field testing as required on behalf of City; recommending and overseeing corrective and recovery measures, as required; and develop a detailed schedule of close-out activities, including punch lists, equipment testing, start-up procedures and occupancy.
With the approval of the construction management and inspection consultant agreements, staff can expeditiously execute a scope of work task order and concurrently execute a large number of projects with the aid of the selected consultants. Engineering staff, serving as overall Project Managers, will oversee the consultant's construction management for each project, and ensure that all projects meet the required construction schedule and all applicable Engineering and City standards. In addition, City Engineering staff will continue their professional development by staying abreast of the latest project management best practices.
All on-call consultants will be held to high project delivery standards. Aside from demanding competitive fee proposals for the individual task orders, staff will discontinue utilizing services from any firm that has not performed to City staff expectations on prior assignments. The on-call consultant agreements do not require the City to utilize the full amount of the contracts, so subsequent project assignments will be tied to past performance.
On May 19, 2015 City Council approved agreements for on-call Design and Utility Engineering Services with the following modifications:
1. Staff to not issue individual task orders beyond $100,000 without City Council approval,
2. Staff to not issue cumulative task orders exceeding half the contract amount without City Council approval, and
3. Staff to place an ongoing item on the City Council agenda (Receive and File) to report on the ongoing issuance of task orders.
For consistency, staff recommends that these same conditions apply to these on-call construction management and inspection contracts.
RFP #1032-15 for On-Call Construction Management and Inspection Consultant services was issued on February 26, 2015. It is anticipated that the firms selected as a result of this RFP will be used on a variety of projects identified in the CIP. Twenty-four firms submitted responses to the RFP. Three groups of eight staff members reviewed the proposals submitted.
The top three firms as a result of the evaluation are being recommended for a contract award (The complete ratings can be seen in Attachment 4). The selection criteria included:
· Understanding of the work to be done
· Experience with similar kinds of work
· Quality of staff for work to be done
· Capability of developing innovative or advanced techniques
· Familiarity with state and federal procedures
· Financial responsibility
· Demonstrated technical ability
ALTERNATIVES CONSIDERED:
ALTERNATIVE #1:
Staff augmentation through a temporary services agency could be used to augment and assist staff with the delivery of CIP Projects.
PROS:
Staff augmentation could help eliminate or reduce tasks previously performed by engineering staff, freeing up staff time to devote to the delivery of CIP Projects.
CONS:
Staff augmentation would require a search and interview of possible candidates, and turnover of temporary staff is a possibility further delaying the delivery of CIP projects until a replacement can be found.
CONCLUSION:
It is respectfully recommended that the City Council award Professional Service Agreements for On-Call Construction Management and Inspection Consultant Services to Psomas, Civil Source, Inc. and AndersonPenna Partners, Inc. in the amount of $400,000 for a three year term for each firm.
ATTACHMENTS:
1. Professional Services Agreement - Psomas of Culver City, CA
2. Professional Services Agreement - AndersonPenna Partners, Inc. of Newport Beach, CA
3. Professional Services Agreement - Civil Source, Inc. of Irvine, CA
4. Typical Engineering Consultant RFP Process and RFP #1032-15 Consultant Ratings
5. List of Potential Projects for Construction Management and Inspection