Title
Aquifer Storage and Recovery Wells and Water Production Wells - Well Drilling and Installation/Testing of Infrastructure - Construction Manager at Risk Construction Services (Ordinance S-43977)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with MGC Contractors, Inc. (MGC Contractors), to provide Construction Manager at Risk (CMAR) construction services for five wells in 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. MGC Contractors' fee for the CMAR construction services will not exceed $21.6 million, including all subcontractor and reimbursable costs. Further request authorization for the City Controller to disburse all funds related to this item.
Summary
The City plans to install three production wells and seven ASR wells. The contractor is assigned five wells (numbers 307, 308, 310, 311, and 313). Water pumped from the wells will be used to supplement potable water supplies throughout Phoenix during times of long-term water shortages, emergency outages, and to meet potable system demands.
The initial construction contract services will be for the preparation of a Guaranteed Maximum Price (GMP) proposal for the construction services provided under the contract, and MGC Contractors will assume the risk of delivering the project through a GMP contract amendment.
The CMAR will be responsible for construction means and methods related to the project, participating with the City in a process to set a Small Business Enterprise (SBE) goal 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. MGC Contractors will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. MGC Contractors may also compete to self-perform limited amounts of work.
MGC Contractors' construction services include, but are not limited to: construct infrastructure for the wells, schedule, manage site operations, field verification of site conditions, arrange for procurement of materials and equipment, and provide quality controls.
Procurement Results
MGC Contractors 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 construction contract is expected to expire June 30, 2021. 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
MGC Contractors' fee for the CMAR construction services will not exceed $21.6 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 $21,475,000 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 145610 was approved by City Council on July 6, 2017.
Location
Wells 307, 308, 310, 311, and 313 are all located in Council District 2.
.. Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department, and the City Engineer.