Title
Citywide General Construction Job Order Contract Services - Amendment - 4108JOC178 (Ordinance S-49389)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 149740 with DL Norton General Contracting, Inc. to provide $1 million in additional General Construction Job Order Contracting Services, and to authorize execution of a Job Order Agreement in an amount up to $9.9 million for the Replace Phoenix City Hall Sanitary Sewer Lines and Repair Roof Drain System project. Further request to authorize execution of amendments to Master Agreement 149740 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 additional fee for services included in this amendment will not exceed $1 million.
Report
Summary
The purpose of this project is to replace the sanitary waste and vent piping and provide re-sloping of storm drain piping at Phoenix City Hall (City Hall).
In 2018, a consultant was hired to perform an assessment at City Hall which resulted in recommendation of a full system replacement to avoid a potential widespread system failure. In 2019, the same consultant was hired to complete design through its Engineering On-Call contract. In August 2020, staff pursued the specialized design and construction expertise of DL Norton General Contracting, Inc. under an existing Job Order Contract (JOC), to provide pre-construction services which included working with the design consultant to prepare final construction drawings, prepare a construction schedule which projected a timeline of 12 months for completion, and a cost estimate for construction.
Due to the complexity of the project, impact and coordination required to work with multiple departments residing in City Hall, as well as the security and logistical requirements of working within City Hall, it is imperative that the City use a contractor that can meet these requirements. DL Norton General Contracting, Inc. has assembled a specialized team of subcontractors, all of which have a vast knowledge and familiarity with the existing conditions.
Use of a JOC construction services contract allows the City to address the timeline requirements and specialized aspects of the project. To ensure DL Norton General Contracting, Inc.'s contract has sufficient capacity for replacement of the sanitary sewer line and roof drain repair project, staff recommends increasing the JOC contract capacity and spending authority of DL Norton General Contracting, Inc.’s current JOC by an additional $1 million to complete this project. This amendment will allow for issuance of a job order agreement to DL Norton General Contracting, Inc. for an amount not to exceed $9.9 million for the City Hall replacement of sanitary sewer lines and repair of the roof drain system.
This amendment is necessary because funding for this project was phased between Fiscal Years 2021, 2022, and 2023. Due to the phased funding approach, work remains to be completed and the cost of construction industry-wide has increased at an unprecedented rate. Cost increases in commercial construction have averaged between 20 percent to 35 percent for materials and five percent to 15 percent for labor. Currently $8.9 million in contracts have been executed to lock in pricing and control further escalation. Remaining competitive bids have been received that will be used to execute the remaining $1 million of the project and avoid further cost increases.
Contract Term
The term of the agreement will not change. 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 initial master agreement for Job Order Contracting Services was approved for an amount not to exceed $10 million, including all subcontractor and reimbursable costs.
- Amendments increased the master agreement by an additional $6.9 million, for a new total amount not to exceed $16.9 million, including all subcontractor and reimbursable costs.
- This amendment will increase the master agreement by an additional $1 million, for a new total amount not to exceed $17.9 million, including all subcontractor and reimbursable costs.
Funding for this amendment is available in the Public Works Department's Capital Improvement Program budget. The Budget and Research Department will separately review and approve funding availability prior to execution of any job order agreements. 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:
- Master Agreement 149740 (Ordinance S-45604) on May 1, 2019;
- Master Agreement 149740 Amendment (Ordinance S-47546) on May 19, 2021; and
- Master Agreement 149740 Amendment (Ordinance S-48616) on May 25, 2022.
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Public Works Department, and the City Engineer.