Title
Union Hills Water Treatment Plant - Finished Water Improvements - Construction Manager at Risk Services - WS85050052 (Ordinance S-53189) - District 2
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Hunter Contracting Co. to provide Construction Manager at Risk Preconstruction and Construction Services for the Union Hills Water Treatment Plant - Finished Water Improvements project. Further request to authorize the 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 $88,495,000.
Report
Summary
The purpose of this project is to improve the long-term operational and drought resiliency of finished water operations at the Union Hills Water Treatment Plant. The existing 40 million gallon finished water reservoir requires rehabilitation but cannot be taken out of service without bringing the plant offline for an extensive period, limiting the City's ability to produce clean drinking water. A new 20 million gallon on-site concrete reservoir will be designed and constructed to provide redundancy for the plant's finished water storage, allowing the existing reservoir to remain offline longer for rehabilitation and future maintenance. The improvements will also facilitate greater operational flexibility in the event of significant reductions in available Colorado River water resources.
Hunter Contracting Co. will begin in an agency support role for Construction Manager at Risk Preconstruction Services. Hunter Contracting Co. will assume the risk of delivering the project through a Guaranteed Maximum Price agreement.
Hunter Contracting Co.’s Preconstruction Services include, but are not limited to: providing detailed cost estimating and knowledge of marketplace conditions; providing project planning and scheduling; providing for construction phasing and scheduling that will minimize interruption to City operations; providing alternate systems evaluation and constructability studies; advising the City on ways to gain efficiencies in project delivery; providing long-lead procurement studies and initiate procurement of long-lead items; assisting in permitting processes; protecting the owner’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.
Hunter Contracting Co.’s initial Construction Services will include preparation of a Guaranteed Maximum Price proposal provided under the agreement. Hunter Contracting Co. will be responsible for construction means and methods related to the project and fulfilling the SBE program requirements. Hunter Contracting Co. will be required to solicit bids from prequalified subcontractors and to perform the work using the City’s subcontractor selection process. Hunter Contracting Co. may also compete to self-perform limited amounts of work.
Hunter Contracting Co.’s additional Construction Services include constructing the new reservoir, associated infrastructure and utilities, and necessary site improvements; selecting subcontractors/suppliers for this project; preparing at least one but potentially multiple Guaranteed Maximum Price proposals that meets the approval of the City; coordinating with various City of Phoenix departments, other agencies, utility companies; arranging for procurement of materials and equipment; scheduling and managing site operations; bidding, awarding, and managing all construction related contracts while meeting City bid requirements including the local and SBE participation goal; providing quality controls; bonding and insuring the construction; addressing all federal, state and local permitting requirements; dealing with owner issues; maintaining a safe work site for all project participants; attending or facilitating recurring progress meetings; and coordinating with the City’s selected construction administration and inspection consultant.
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. Nine firms submitted proposals and are listed below.
Selected Firm
Rank 1: Hunter Contracting Co.
Additional Proposers
Rank 2: PCL Construction, Inc.
Rank 3: McCarthy Building Companies, Inc.
Rank 4: Garney Companies, Inc.
Rank 5: Kiewit Infrastructure
Rank 6: MGC Contractors, Inc.
Rank 7: Sundt Construction, Inc.
Rank 8: Felix Construction Company
Rank 9: Kear Civil Corporation
Contract Term
The term of the agreement is 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 Hunter Contracting Co. will not exceed $88,495,000, 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. 20th Street and E. Deer Valley Road
Council District: 2
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer, Deputy City Manager Frank McCune, the Water Services Department and the City Engineer.