REPORT TO COUNCIL
SUBJECT
Title
Award of Six On-call Contracts for the Departments of Environmental Services and Public Works for Engineering and Related Services (F14-21)
Report
REPORT IN BRIEF
Approval is requested to award three contracts to provide on-call construction management services for the Department of Public Works (DPW) and three contracts to provide on-call engineering and technical support services for the Department of Environmental Services (ESD). These on-call contracts are recommended due to the scope of public works construction and maintenance activity currently underway or planned over the next several years, as more fully explained throughout this report.
The contracts are recommended for an initial three-year period, with extension period(s) of up to four additional years depending on need, pricing, service and available funding. The initial three-year contracts for DPW will be established at $375,000 each ($125,000 annually), while the initial three-year contracts for ESD will be established at $300,000 each ($100,000 annually). Any subsequent renewal period will not exceed the annualized limits set forth in this report without prior Council approval.
The on-call services for DPW are specifically related to construction management support by which consulting firms will provide staff augmentation to the City. The on-call services for ESD are specifically related to the provision of technical expertise to maintain and optimize existing infrastructure while the new Water Pollution Control Plant (WPCP or Plant) reconstruction program gets underway.
The consulting firms recommended for contract award are: CSG Consultants, Ghirardelli Associates and Swinerton Management & Consulting for DPW; and Black & Veatch, Carollo Engineers and HDR Engineering Inc. for ESD. Individual contracts will be based on and in substantially the same form as the template agreement provided in Attachment 1. Minor modifications will be made to individual agreements based on the specific circumstances and array of services for each on-call firm.
ENVIRONMENTAL REVIEW
N/A.
BACKGROUND AND DISCUSSION
The Purchasing Division issued a Request for Qualifications (RFQ F14-21) in November 2013 to establish on-call contracts for DPW and ESD in a number of service areas, including Engineering Design Coordination; Construction Management; Land Development and Map Improvement Plan Review; Quality Assurance (QA), Materials Sampling and Testing Services; and Wastewater Engineering/Technical Support Services. The six contracts now being considered are the first to be brought forward for Council approval. Several contracts in the Quality Assurance/Materials Sampling and Land Development categories have been or are being established under the City Manager's contract award authority. Contracts for Engineering Design Coordination will be established at a later date.
Construction Management Support
The Department of Public Works has augmented its construction management activities with consultant support for the past several years. This was mainly attributable to the Sunnyvale Works! local economic stimulus program, which significantly increased the pace of public works construction activity (for both engineering design and actual construction). Currently there are 17 capital projects in the construction phase, with several more planned over the next year. The amount of construction currently underway cannot be managed by in-house staff alone, which consists of one senior engineer, an engineering assistant and four inspectors.
Wastewater Engineering and Technical Support Services
While the new Plant is being reconstructed, the existing infrastructure needs to be maintained and efficiently operated/optimized during all phases of construction. Interim work includes but is not limited to designs related to repairs to the primary, secondary and tertiary treatment processes, as well as the Power Generation Facility (PGF). Technical and engineering services for ongoing operational support is also required for computerized control/instrumentation systems, high voltage power distribution, treatment process and systems design/optimization, regulatory compliance, and hazardous materials handling, among others.
Attachment 3 provides detailed descriptions of the services that will be provided under the on-call contracts.
RFQ Consultant Selection Process
The City received 47 Statements of Qualifications (SOQs) in conjunction with the RFQ process; of these, 15 were in the construction management (CM) category and six were received for WPCP Technical Support. City staff evaluated the written proposals, then conducted selection interviews, strictly on the basis of qualifications. Of the 15 submitting CM firms, the five which received the highest written evaluation were interviewed (other firms may be interviewed at a later date if the need arises). Four of the six WPCP technical support firms receiving the highest written evaluation scores were interviewed. Following the interview processes, three firms were shortlisted in each category, and hourly rates were obtained and negotiated.
The RFQ included a requirement that if any prospective proposers were under contract with the City as a prime or sub-consultant associated with the Plant reconstruction program, the proposing firms would have to demonstrate to the City's satisfaction that no conflicts of interest existed under state or local law. This requirement was added to the RFQ due to the relatively small pool of qualified wastewater engineering firms in the Bay Area and the likelihood that the City would receive submittals from firms currently under contract for the larger reconstruction program. Among the firms selected for ESD consulting, the City is currently under contract with Carollo Engineers (with HDR as a partnering firm) for master planning and the new primary treatment facility design (RTC No. 13-108). Additionally, the recently-awarded contract to CDM Smith for overall Program Management for the new Plant includes Black & Veatch as a partnering firm (RTC No. 14-0264).
Each of the three wastewater engineering firms recommended for award has provided reasonable assurances to ESD and Purchasing staff that no conflicts exist. Additionally, the focus of the work for the on-call contracts will be to maintain and optimize existing infrastructure and processes rather than providing technical assistance on new construction. Finally, the consultants will be contractually obligated to notify the City of any conflicts of interest or appearance of conflicts (see Section 21 of Attachment 1).
It should be noted that Carollo, HDR and Black & Veatch have all agreed to the same hourly rates that were previously negotiated under the larger contracts. Staff also negotiated favorable rates with the Construction Management firms. The rate sheets for all six firms are contained in Attachment 2.
FISCAL IMPACT
Budgeted funds are available in various capital projects and in operating programs 365 (Wastewater Management) and 366 (Regulatory Programs).
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Award three (3) three-year on-call contracts for construction management services, each in the amount of $375,000 and in substantially the same form as the template in Attachment 1 to CSG Consultants Inc., Ghirardelli Associates, and Swinerton Management & Consulting; 2) award three (3) three-year on-call contracts for wastewater engineering/technical support services, each in the amount of $300,000 and in substantially the same form as the template in Attachment 1 to Black & Veatch Corporation, Carollo Engineers, and HDR Engineering Inc.; and 3) delegate authority to the City Manager to extend the contracts for up to four additional years based upon available funding, need, pricing and service. Contract extension period(s) shall not exceed the annualized amounts of $125,000 for construction management services and $100,000 for wastewater engineering/technical support services without prior Council approval.
Staff
Prepared by: Pete Gonda, Purchasing Officer
Reviewed by: Grace Leung, Director of Finance
Reviewed by: John Stufflebean, Director of Environmental Services
Reviewed by: Kent Steffens, Director of Public Works
Approved by: Robert A. Walker, Interim City Manager
Attachments
ATTACHMENTS
1. Draft On-call Services Agreement Template
2. Consultant Rate Schedules
3. RFQ Service Category Descriptions