Title
100 W. Washington Renovation - Construction Manager at Risk Services - CP10500007 (Ordinance S-49014)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Okland Construction Company, Inc. to provide Construction Manager at Risk Preconstruction and Construction Services for the 100 W. Washington Renovation 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 $121 million.
Report
Summary
The purpose of this project is to provide a replacement facility for the current police headquarters, which is obsolete and insufficient at 156,000 square feet. The current headquarters was built when Phoenix had one-third its current population. A Needs Assessment was completed in 2019 and the study was updated in 2022. The study has a 20-year horizon and anticipates approximately 470,000 square feet of space to accommodate the long-term needs of the City's police headquarters functions. The renovated 100 West facility will provide functional, efficient space that caters to the unique needs of the dedicated staff who provide 911 and other police services to the community.
Okland Construction Company, Inc. will begin in an agency support role for Construction Manager at Risk Preconstruction Services. Okland Construction Company, Inc. will assume the risk of delivering the project through a Guaranteed Maximum Price agreement.
Okland Construction Company, Inc.’s Preconstruction Services include, but are not limited to: project planning, construction phasing and scheduling; alternate systems evaluation and constructability studies; detailed cost estimating; long-lead procurement studies and initiate procurement of long-lead items; advise City on choosing green building materials; assist in the permitting processes; and other services as needed for the 27-story, approximately 500,000 square foot office tower and parking structures; and participate with the City in a process to establish a Small Business Enterprise (SBE) goal for the project.
Okland Construction Company, Inc.’s initial Construction Services will include preparation of one or more Guaranteed Maximum Price proposals provided under the agreement. Okland Construction Company, Inc. will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements. Okland Construction Company, Inc. will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. Okland Construction Company, Inc. may also compete to self-perform limited amounts of work.
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. Five firms submitted proposals and are listed below.
Selected Firm
Rank 1: Okland Construction Company, Inc.
Additional Proposers
Rank 2: Core Construction, Inc.
Rank 3: Gilbane Building Company, Inc.
Rank 4: Layton Construction Company, LLC
Rank 5: MA Mortenson Company
Contract Term
The term of the agreement will not exceed five years from the 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 Okland Construction Company, Inc. will not exceed $121 million, including all subcontractor and reimbursable costs.
Funding is available in the Phoenix Convention Center 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
100 W. Washington St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Managers Inger Erickson and Mario Paniagua, the Phoenix Convention Center Department, and the City Engineer.