HomeMy WebLinkAboutAgenda Item - 2002-04-16 - Number 9.1.2 - 9. 1 .2
04/16/02
CITY OF LAKE OSWEGO
AGENDA REPORT SUMMARY
MEETING DATE: April 16, 2002
SUBJECT: Award a Construction Manager/General Contractor (CM/GC) construction
phase contract to Natt McDougall Company in the amount of$1,288,978 for
the Clackamas River Intake Fish Screen Modifications project (Work Order
1144).
RECOMMENDED MOTION: Award a Construction Manager/General Contractor (CM/GC)
construction phase contract to Natt McDougall Company in the amount of$1,288,978 for the
Clackamas River Intake Fish Screen Modifications project (Work Order 1144).
EST. FISCAL ATTACHMENTS: NOTICED (Date):
IMPACT: $1,288,978
• Komarek Council Report
dated 4/05/02.
STAFF COST:
Ordinance no.:
Resolution no.:
BUDGETED:
Y X N
Previous Council
FUNDING SOURCE: consideration: August 7, 2001
Water Fund
IT ENGINE R CO . DEV. DIRECTOR CITY M AGER
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Date Date Date
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H\JOEL_K\wo\Wo_1144IntakeScreen\agnda_chk_CM-GC_GMP_constructlonphase doc
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W Ilk CITY OF LAKE OSWEGO
COUNCIL REPORT
OREGOH
TO: Douglas J. Schmitz,City Manager
FROM: Joel B. Komarek,P.E., City Engineeve---
SUBJECT: Award of Construction Manager/General Contractor(CM/GC) Construction
Phase Contract to Natt McDougall Company in the amount of$1,288,978 for
Clackamas River Intake Fish Screen Modifications.
DATE: April 5, 2002
Action
The Council is requested to award a Construction Manager/General Contractor(CM/GC) construction
phase contract to Natt McDougall Company in the amount of$1,288,978 for Clackamas River Intake
Fish Screen Modifications project.
Introduction
The City's public contracting procedures and Oregon State contracting and purchasing statutes allow
public agencies to use alternative contract procurement processes when such alternative processes can be
shown to provide substantial public benefit in terms of cost and quality of the constructed work. One of
these alternative processes is the CM/GC type contract for construction of public improvements.
On August 7, 2001 the City Council awarded a CM/GC contract to the Natt McDougall Company
(NMC)related to the construction of improvements to the City's water supply intake facility. The
language of the motion the Council approved reads as follows:
"Move to Award a Construction Manager/General Contractor(CM/GC) contract for the Clackamas
River Intake Fish Screen Modifications project to Natt McDougall Company in the amount of$24,860
(preconstruction phase) and authorization of the Public Contracting Officer to negotiate a guaranteed
maximum price (GMP) and execute a contract for construction phase services.
Discussion
Since the August 7 Council award, the City, its engineering consultant and the NMC have been
partnering in the permitting and design phases of this project. The permit application was submitted to
the Corps of Engineers/Division of State Lands and National Marine Fisheries Service in early February
and recent correspondence with the agencies indicates the City's project will be approved late this
month. With permit in hand, the construction phase of the project can proceed.
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Council Report
Page 2 of 3
A final task of the preconstruction phase contract is negotiation of a Guaranteed Maximum Price (GMP)
for construction of the improvements based upon 95%complete plans and specifications. The
preconstruction phase contract established strict procedures for the CM/GC contractor to follow to
ensure competition among sub-bidders for any work not self-performed and for the GMP development
process itself. The NMC has complied with these procedures and on March 21, 2002 submitted its
preliminary GMP. Pursuant to the preconstruction phase contract,both City engineering staff and its
design consultant reviewed and commented on the preliminary GMP. On April 2,the NMC submitted a
revised GMP for review. In response to the City's comments, the NMC reduced the overall GMP by
$138,137. Presented below is a breakdown of this amount for the preliminary and final GMP:
Preliminary GMP Final GMP
Direct Costs (DC) $1,134,461 $1,053,850
Indirect Costs: (IDC)
Project Overhead $117,538 $86,140
Contingency @ 3% of DC $45,378 $31,808
Sub-total IDC's $162,916 $117,948
March 21 GMP April 2 GMP
Sum DC's+IDC's $1,297,377 $1,171,798
CM/GC Fee @ 10% $129,738 $117,180
Total GMP $1,427,115 $1,288,978
Budget Impacts
Engineering staff originally set a budget of$1.6 million-dollars for this project. With the above GMP
amount and including consultant and staff costs, the estimated budget need is $1,713,478. The original
budget amount would have been sufficient for the project scope as originally envisioned but early in the
pre-design phase, a detailed geotechnical reconnaissance,revealed that the intake structure was founded
on highly weathered soils and that the structure would likely suffer irreparable damage during an
earthquake. It was decided that seismic strengthening of the structure during the fish screen work, was
the last, best opportunity to complete this work and therefore, it was incorporated into the project scope.
The additional work added about$150,000 to the original project cost. However, due to the excellent
bidding climate the City has enjoyed over the last several years, the water fund capital budget can absorb
this additional cost and the proposed FY 02/03 water fund capital budget reflects this.
Alternatives
The alternatives are to: 1)award a CM/GC construction phase contract to the Natt McDougall Company
for a guaranteed maximum price(GMP)of$1,288,978 for construction of Clackamas River Intake Fish
Screen Modifications project, or 2)remove from the consent agenda and discuss prior to award.
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Council Report
Page 3 of 3
Conclusion
The CM/GC partnership with the Natt McDougall Company has provided significant value to the City on
this regulatory driven project. Project costs for the original scope of work are well within original budget
estimates and sufficient additional funds are being budgeted for FY 02/03 to cover the additional costs of
providing seismic upgrades for this irreplaceable component of the City's water supply system. All
provisions of the preconstruction phase contract concerning competitive bidding for subcontracted work
have been complied with and the GMP has been negotiated to the satisfaction of the City. Based upon
the above, staff recommends award of a CM/GC contract to Natt McDougall Company for a GMP of
$1,288,978 for construction phase services.
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