Title
Zone 3D and 4A Improvements Program: Water Transmission Main - Construction Manager at Risk Construction Services with Sundt Construction, Inc. and Kiewit Infrastructure West Co. - WS85500442 (Ordinance S-46723)
Description
Request to authorize the City Manager, or his designee, to enter into separate agreements with Kiewit Infrastructure West Co. (Kiewit) and Sundt Construction, Inc. (Sundt) to provide Construction Manager at Risk (CMAR) services for the Zone 3D and 4A Improvements Program: Water Transmission Main project. Further request to authorize execution of amendments to the agreement as necessary within the Council-approved expenditure authority as provided below, and for the City Controller to disburse all funds related to this item. The fee for services will not exceed $15 million for Kiewit and $15 million for Sundt, for a total value of $30 million.
Report
Summary
The purpose of this project is for the City of Phoenix to supply water in north Phoenix in the event there are restrictions placed on Colorado River water delivered through the Central Arizona Project. The City of Phoenix treats Colorado River water at the Union Hills and Lake Pleasant Water Treatment Plants (WTPs), which supply water to north Phoenix. Construction of a new 66-inch pipeline from the 24th Street WTP to 32nd Street and Bell Road is intended to allow for the delivery of Salt and Verde River water into north Phoenix.
This agreement is for the procurement of long-lead materials that will be required to begin construction. There will be additional amendments for planned construction activities, which will be submitted through separate requests to Council.
The Contractors' services will include preparation of a Guaranteed Maximum Price proposal for the Construction Services provided under the agreement and participating with the City in a process to establish a Small Business Enterprise (SBE) goal for the project. Each firm will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements. Each firm will be required to solicit bids from pre-qualified subcontractors to perform the work using the City’s subcontractor selection process and address all federal state and local permitting requirements, deal with owner issues and maintain a safe work site for all project participants. Each firm may also compete to self-perform limited amounts of work.
The Contractors' services include, but are not limited to: constructing the selected final plans and specifications; soliciting of bids for major portions of the work; scheduling and managing site operations; acquisition and maintenance of required permits and licenses; and coordinating with various City of Phoenix departments, utility companies, and other agencies, as required.
These Agreements are essential to the health, safety, and welfare of the public and critical operations for the City.
Procurement Information
The selection was made using a qualifications-based selection process set forth in Section 34-604 of the Arizona Revised Statutes. Scoring and selection were made in conjunction with the CMAR Preconstruction Services selection process.
Contract Term
The term of each agreement is three years from issuance of the Notice to Proceed. Work scope identified and incorporated into the agreement prior to the end of the term may be agreed to by the parties, and work may extend past the termination of the agreement. No additional changes may be executed after the end of the term.
Financial Impact
The agreement value will not exceed $15 million for Kiewit and $15 million for Sundt for a total value of $30 million, including all subcontractor and reimbursable costs.
Funding is available in the Water Services Department's Capital Improvement Program budget. The Budget and Research Department will separately review and approve funding availability prior to execution of any amendments. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.
Concurrence/Previous Council Action
The City Council approved:
- CMAR Preconstruction Service Agreements 148949 (Ordinance S-45170) and 148952 (Ordinances S-45171) on Dec. 5, 2018.
Location
24th Street WTP to 32nd Street and Shea Boulevard
Council Districts: 3 and 6
32nd Street and Shea Boulevard to 32nd Street and Bell Road
Council Districts: 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.