Title
Phoenix Convention Center General Construction Job Order Contracting Services - Amendment 1 - 4108JOC122 (Ordinance S-45659)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 138905 with DNG Construction, LLC to provide $18 million in additional General Construction Job Order Contracting Services, and to authorize the execution of a Job Order Agreement in an amount up to $25 million. Further request to authorize execution of amendments to Agreement 138905 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 $18 million.
Report
Summary
The purpose of this project is to replace a temporary shoring wall built in 2006 with a permanent shoring wall solution. In December 2008, the $600 million expansion of the Phoenix Convention Center (PCC) was completed and opened to the public. The expansion project tripled the size of the existing facilities. Since that time, the PCC has hosted 550 national conventions and trade shows representing more than 2.2 million convention attendees and 5.9 million hotel room nights with a direct economic impact of approximately $2.2 billion. In addition, the PCC expansion project has generated approximately $186 million in total revenues to the State General Fund from 2009 to 2017.
The PCC expansion project was constructed in two phases. The adopted PCC Master Plan included a future third phase to be developed as a contiguous extension of the North Building beneath Washington Street. Accordingly, the lower level exhibit hall of the North Building was constructed with a temporary shoring wall to facilitate a future expansion project to the south.
The temporary shoring wall structure holds back soil 45 feet below street level and is approximately 700 feet in length. The wall is constructed of steel beams and wood planks and was not intended to remain indefinitely or as a permanent structure. The shoring wall was built in 2006 and is subject to annual inspections and maintenance. While going through the required annual inspection process in 2018, the structural engineer noted the condition of the temporary wall as needing to be replaced with a permanent structure to ensure the ongoing safety and integrity of the facilty. PCC staff implemented interim measures to extend its use with the understanding that a permanent resolution would be put into place. There is serious concern that additional delays would not only impact PCC business delivery but could also cause issues with subsequent annual required inspections.
Due to the urgent and complex nature of the shoring wall replacement project, staff from the PCC and Street Transportation Department have been working since April 2018 to develop a plan to replace the temporary shoring wall with a permanent structure. Further, based on the uniqueness and specialized nature of this type of project, staff sought specialized design and construction expertise and engaged DNG Construction, LLC (DNG) under an existing Job Order Contract (JOC). DNG has assembled a specialized team of subcontractors, all of which were involved in the original expansion project and have a vast amount of knowledge and familiarity with the existing conditions. The design and construction of the permanent structure is anticipated to have a projected timeline of 16 months for completion. The timeline for the completion of the project is critical in order to provide a permanent shoring wall solution as soon as possible and to avoid conflict with major downtown events and convention center activities.
The use of a JOC construction services contract allows the City to address the timeline requirements and specialized aspects of the project. DNG currently has $7 million in remaining contract capacity on its JOC Agreement 138905. To ensure the contract has sufficient capacity for the shoring wall project, staff recommends increasing the contract capacity and spending authority of DNG's current JOC by an additional $18 million to complete this project. This amendment is necessary to maintain stability of the PCC shoring wall and ensure safety to the visitors attending events at the PCC. This amendment will allow for the issuance of a job order agreement to DNG for an amount not to exceed $25 million for the PCC shoring wall project.
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
- Agreement 138905 for Job Order Contracting Services was executed for a fee not-to-exceed $20 million, including all subcontractor and reimbursable costs.
- Amendment 1 will increase Agreement 138905 by an additional $18 million, for a new total not-to-exceed agreement value of $38 million, including all subcontractor and reimbursable costs.
Funding for this amendment is available in the Phoenix Convention Center's Capital Improvement Program budget. The Budget and Research Department will separately review and approve funding availability prior to the 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:
- Job Order Contracting Services Agreement 138905 (Ordinance S-41091) on July 2, 2014.
- The issuance of excise tax-funded obligations to cover the cost of the shoring wall project on May 1, 2019 (Ordinance S-45548).
Location
100 N. 3rd St.
Council Districts: 7 and 8
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr., Deputy City Manager Mario Paniagua, the Phoenix Convention Center Department, and the City Engineer.