Title
Aquifer Storage and Recovery Wells and Water Production Wells - Well Drilling and Installation/Testing of Infrastructure - Construction Manager at Risk Construction Services - WS85010054-2 (Ordinance S-43968)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Felix Construction Company to provide Construction Manager at Risk (CMAR) construction phase services for the Aquifer Storage and Recovery (ASR) Wells and Water Production Wells project, and to amend the agreement as necessary to provide construction services within the Council-authorized funding authority. Felix Construction Company's fee for CMAR construction services will not exceed $24 million, including all subcontractor and reimbursable costs. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City plans to install three production wells and seven ASR wells. The firm is assigned five wells (numbers 304, 305, 306, 309, 312). Water pumped from the wells will be used to augment Phoenix’s potable water resources during times of long-term water shortages and emergency outages, and to meet potable system demand balancing.
The initial construction contract services will be for preparation of a guaranteed maximum price (GMP) proposal for the construction services provided under the contract, and Felix Construction Company will assume the risk of delivering the project through GMP construction contract amendments.
The CMAR will be responsible for construction means and methods related to the project, participating with the City in a process to set a local and Small Business Enterprise (SBE) goals for the project, and implementing the SBE process. A Small Business Enterprise goal will be established before the start of construction and will be incorporated into the contract by amendment. Felix Construction Company will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. Felix Construction Company may also compete to self-perform limited amounts of work.
Procurement Information
Felix Construction Company was chosen for this project using a qualifications-based selection process according to Section 34-604 of the Arizona Revised Statutes. Scoring and selection were made in conjunction with the CMAR Design Phase Services.
Contract Term
The term of the initial GMP preparation services under the CMAR Construction Phase Services contract is expected to be six months from issuance of a notice to proceed. The GMP Construction Services will be implemented under contract amendment and is expected to take an additional 30 months. Contract work scope identified and incorporated into the contract prior to the end of the contract may be agreed to by the parties, and work may extend past the termination of the contract. No additional contract work scope changes may be executed after the end of the contract term.
Financial Impact
Felix Construction Company's fee for CMAR construction services will not exceed $24 million, including all subcontractor and reimbursable costs.
Staff will immediately execute a $125,000 contract for GMP preparation services, and GMP construction contract amendments totaling an amount not-to-exceed $23,875,000 will be reviewed and approved separately by the Budget and Research Department.
Funding is available in the Water Services Department’s Capital Improvement Program budget. Contract payments may be made up to the contract limits for all rendered contract services, which may extend past the contract termination.
Concurrence/Previous Council Action
The CMAR Design Phase Services Contract 145609 was approved by City Council on July 6, 2017.
Location
Wells 304, 305, 306, 309 and 312 are located in Council Districts 1, 2 and 3.
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department, and the City Engineer.