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File #: 25-0408   
Type: Ordinance-S Status: Adopted
Meeting Body: City Council Formal Meeting
On agenda: 5/7/2025 Final action: 5/7/2025
Title: Well 6A-W319, Booster Pump Station 8A-B3 and Pressure Reducing Valve Station 6A-R2 - Construction Manager at Risk Services - WS85010045 and WS85010054 (Ordinance S-51870) - District 2
District: District 2

Title

Well 6A-W319, Booster Pump Station 8A-B3 and Pressure Reducing Valve Station 6A-R2 - Construction Manager at Risk Services - WS85010045 and WS85010054 (Ordinance S-51870) - District 2

 

Description

Request to authorize the City Manager, or his designee, to enter into an agreement with MGC Contractors, Inc. to provide Construction Manager at Risk Preconstruction and Construction Services for the Well 6A-W319, Booster Pump Station 8A-B3 and Pressure Reducing Valve Station 6A-R2 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 $20.2 million.

 

Report

Summary

The purpose of this project is to redevelop an existing potable groundwater production well site to bring the inactive well back into service.

 

MGC Contractors, Inc. will begin in an agency support role for Construction Manager at Risk Preconstruction Services. MGC Contractors, Inc. will assume the risk of delivering the project through a Guaranteed Maximum Price agreement.

 

MGC Contractors, Inc.’s Preconstruction Services include, but are not limited to: providing detailed cost estimating and knowledge of marketplace conditions; project planning and scheduling; construction phasing and scheduling that will minimize interruption to City operations; alternate systems evaluation and constructability studies; advise City on ways to gain efficiencies in project delivery; long-lead procurement studies and initiate procurement of long-lead items; assist in the permitting processes; protect the City's sensitivity to quality, safety, and environmental factors; and participating with the City in a process to establish a Small Business Enterprise (SBE) goal for the project.

 

MGC Contractors, Inc.’s initial Construction Services will include preparation of a Guaranteed Maximum Price proposal provided under the agreement. MGC Contractors, Inc. will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements. MGC Contractors, Inc. will be required to solicit bids from pre-qualified subcontractors and to perform the work using the City’s subcontractor selection process. MGC Contractors, Inc. may also compete to self-perform limited amounts of work.

 

MGC Contractors, Inc.'s additional Construction Services include: equip the existing well with all new well equipment; construct the boost pump station, pressure reducing valve station, and all associated infrastructure; select subcontractors and suppliers for this project; prepare a Guaranteed Maximum Price proposal that meets the approval of the City; coordinate with various City of Phoenix departments, other agencies, and utility companies; arrange for procurement of materials and equipment; schedule and manage site operations; bid, award, and manage all construction related contracts while meeting City bid requirements including the local and SBE participation goal, provide quality controls, and bond and insure the construction.

 

Procurement Information

The selection was made using a qualifications-based selection process set forth in Section 34-603 of the Arizona Revised Statutes (A.R.S.). In accordance with A.R.S. Section 34-603(H), the City may not publicly release information on proposals received or the scoring results until an agreement is awarded. Six firms submitted proposals and are listed below:

 

Selected Firm

Rank 1: MGC Contractors, Inc.

 

Additional Proposers

Rank 2: Felix Construction Company

Rank 3: Hunter Contracting Co.

Rank 4: Filanc

Rank 5: KEAR Civil Corporation

Rank 6: Hensel Phelps Construction Co.

 

Contract Term

The term of the agreement is five 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 for MGC Contractors, Inc. will not exceed $20.2 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.

 

Location

General Location: N. 56th Street and E. Pinnacle Peak Road

Council District: 2

 

Department

Responsible Department

This item is submitted by Assistant City Manager Inger Erickson, Deputy City Manager Ginger Spencer, the City Engineer and the Water Services Department.