Title
Deer Valley Water Treatment Plant Rehabilitation 2019 - Construction Manager at Risk Preconstruction and Construction Services - Rescind and Award - WS85260030 (Ordinance S-47974)
Description
Request to authorize the City Manager, or his designee, to rescind Agreement 150257 with Kiewit Infrastructure West Co., and to award and enter into agreement with McCarthy Building Companies, Inc. to provide Construction Manager at Risk Preconstruction and Construction Services for the Deer Valley Water Treatment Plant Rehabilitation 2019 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 $37.5 million.
Report
Summary
The purpose of this project is to rehabilitate the Deer Valley Water Treatment Plant (WTP). The plant is a conventional filtration water treatment facility located on the south side of the Arizona Canal. City staff have completed a preliminary condition assessment of Deer Valley WTP's treatment systems, which indicated various systems are deteriorating and need rehabilitation due to age and usage. The City has hired an engineering consultant to perform a more comprehensive assessment and provide recommendations for repairs, which may include mechanical, electrical, and structural assets. The City anticipates addressing the following areas: raw water pump station, solids handling facility, solids area drain pump station, facility-wide valve and gate actuators, 84-inch raw water pipe to east basins, facility-wide fire alarm system, and new electrical buildings and gear.
The initial procurement for the Deer Valley WTP Rehabilitation 2019 project was awarded to Kiewit Infrastructure West Co.on June 19, 2019 (Ordinance S-45803) but was terminated for convenience on April 27, 2021. A new procurement process was conducted and McCarthy Building Companies, Inc. (McCarthy) was determined to be the most qualified contractor.
McCarthy will begin in an agency support role for Construction Manager at Risk Preconstruction Services. McCarthy will assume the risk of delivering the project through a Guaranteed Maximum Price (GMP) agreement.
McCarthy's Preconstruction Services include, but are not limited to: detailed cost estimating; project planning and scheduling; providing alternate systems evaluation and constructability studies; advising the City on ways to gain efficiencies in project delivery; providing long-lead procurement studies and initiating procurement of long-lead items; assisting with the permitting process; and preparation of a GMP proposal for the Construction Services provided under the agreement. A Small Business Enterprise (SBE) goal will be established for this project upon substantial completion of Preconstruction Services and prior to the start of construction.
McCarthy's construction services will include: bid, award, and manage all construction related contracts; be responsible for the construction means and methods related to the project; deal with owner issues and maintain a safe work site for all project participants; and fulfilling the SBE program requirements. McCarthy will be required to solicit bids from pre-qualified subcontractors and to perform the work using the City’s subcontractor selection process. McCarthy may also compete to self-perform limited amounts of work.
This Agreement is essential to the health, safety, and welfare of the public and critical operations for the City.
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. Three firms submitted proposals and are listed below.
Selected Firm
Rank 1: McCarthy Building Companies, Inc.
Additional Proposers
Rank 2: PCL Construction, Inc.
Rank 3: Archer Western Construction, LLC
Contract Term
The term of the agreement is three 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 McCarthy will not exceed $37.5 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.
Concurrence/Previous Council Action
The City Council approved Preconstruction Services Agreement 150257 (S-45803) on June 19, 2019 with Kiewit Infrastructure West Co.
Location
Deer Valley WTP
Council District: 1
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department, and the City Engineer.