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HomeMy WebLinkAbout2010-05-24 10-201 ORDERCOUNCIL ACTION Item No. 10 J2 01 Date: 5/24/2010 Item/Subject: ORDER, Awarding Contract for Preconstruction Manager - Arena Responsible Department: Finance Commentary: In February 2010, the Council accepted the recommendations of the Special Committee on Arena Implementation. At that time staff was directed to seek qualifications for preconstruction manger services to assist in defining the overall potential scope and accurately estimate the cost associated of a potential Phase I project at the schematic design level. On April 23, 2010, the City received responses from the following firms: Barr & Barr, Cianbro, Consigli, Gilbane, and Hunt Group. A six member committee conducted in-depth interviews of the respondents. The following specific areas were deemed of greatest importance: qualifications and experience, anticipated process, pre -construction phase work, proposal quality and fee, as well as a number of other considerations. The final scoring indicated that two of the respondents were virtually equal, Cianbro and Hunt Group. Based on the City's familiarity and confidence in the qualifications of the proposed team members, our first-hand knowledge of Cianbro's team members, as well as their proven ability to satisfactorily resolve construction and financial challenges of extremely diverse projects, the panel's recommendation was to award the contract to Cianbro. Cianbro offered to waive the pre - construction manager fee of $175,000, if the City were to move forward with a construction project with Cianrbo as construction manager within a prescribed timeframe. „ DeMftment Head Manager's Comments: This was reviewed and recommended for approval by the Finance Committee on 5/17/2010. Staff will work with Cianbro to extend the timeframe under which the fee will b i ed b gond 24 months as originally proposed. Interim City Manager Associated Information: MemoIOrl Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral Finbnce Director ity Solicitor Page _ of _ (TITLE.) Order, vo 10 11201 Assigned to Councilor - Bronson May 24, 2010 CI`T'Y OF BANGOR Awarding Contract for Preconstruction Manager Services - Arena By the City Council ofe City of Bangor: ORDERED, THAT, Deborah Cyr, Finance Director, is hereby authorized, on behalf of the City of Bangor, to execute a contract with Cianbro Corporation for preconstruction manager services for the Bass Park arena consistent with the terms and conditions contained in the City of Bangor RFQ and Cianbro Corporation response to the RFQ and in a final form and as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL May 24, 2010 Motion Made and Seconded for Passage Resident Steve Sleeper of Silver Road expressed his concern about the new arena proposal. Chair Stone asked that he be invited to attend some upcoming informational meet' s. Passe CITY CLERK (TITLE,) "n Contract for Premn_truction Manager Services — Arena Assigned to Councilor G 10 201 To: Finance Committee From: Debbie Cyr Date: May 11, 2009 RE: Construction Manager at Risk Services — Preconstruction of Multi Purpose Arena Background On February 25, 2010, the City Council accepted the recommendations from the Special Committee on Arena Implementation. At that meeting staff was directed to issue a Request for Qualifications (RFQ) for Construction Manager (CM) at Risk Services. The proposal was to be for a pre -construction manager through schematic design phase only, with the provision to continue on through the remaining project phases, if both parties were mutually agreeable. On March 31, 2010, the City invited interested Construction Manager at Risk contractors to submit written qualifications to perform a full range of construction management service for the pre -construction phase. The CM is expected to provide the services necessary to manage, coordinate and monitor all aspects of the pre -construction phase such as: general administration, design review, scheduling, cost control, constructability analysis, and value engineering. On April 23, 2010, the City received responses from the following firms: Barr & Barr, Cianbro, Consigli, Gilbane, and Hunt Group. We were very pleased to have received so many quality responses to our RFQ. Review Process Due to the overall quality of the proposals received, the limited number of responses and the significance of this project to the City, all of the respondents were invited to participate in an in-depth interview. Interviews were conducted by a six member panel made up of Council Chair Stone, Councilor Hawes, myself, Mike Dyer, Jim Ring, and John Simpson, a member of the public with an extensive background and in-depth knowledge of the contracting business. In addition, to interviewee specific questions that arose from their proposals, staff determined that the following specific areas were of greatest importance: qualifications and experience, anticipated process, pre -construction phase work, proposal quality and fee, as well as a number of other considerations. Each proposer was independently scored by each member of the review team and the results were compiled. The final scoring indicated that two of the respondents were virtually equal, Cianbro and Hunt Group. It was evident to all that both firms had the personnel, background, experience, relationships, and desire to complete this project. A summary of Cianbro's and Hunt Group's proposals follows. 10 There were a number of similarities between both Cianbro and Hunt Group's proposals. Both firms highlighted the importance of all parties (CM, Architect and Owner) working together as a team and establishing clear parameters and levels of authority early on. All of the respondents cited a strong working relationship among parties as the key to successful projects. While each respondent identified programming, unique structural and finish issues, and input from food and beverage provider industry as critical to the overall project, the anticipated approach varied by proposer. Both firms indicated that during the pre-construction/value engineering process, the City would be presented options based not only on first cost but life cost, which includes operating costs. Direct LEED experienced varied by proposer, yet each cited similar opportunities to implement LEED building techniques including waste stream management, use of local materials and the impact of the mechanical/electrical and plumbing (MEP) choices. Through the interview process, it was clear that the proposed project delivery methodology of the CM and Architect each working for the City as members of the project team, was the typical model employed for a project such as this. In addition, all of the respondents were committed to using local sub- contractors should the project move forward, which is representative of current industry practice. As part of the responses, each firm was asked to provide a fixed fee for preconstruction manager services. The proposed fixed fee varied widely among the respondents ($41,000 - $175,000). This fluctuation is indicative of a respondent's business philosophy (i.e. a loss leader). Also, most firms indicating a willingness to deduct some or the entire proposed fee should the City move forward with a construction project and both parties are in agreement to continue the relationship. While Cianbro's proposed pre -construction team includes employees with limited direct arena/sports facility experience, they made provisions to augment this knowledge through the use of a Special Advisory Council. The Council would serve as a resource upon which to draw and includes a structural engineering firm, food and beverage provider, and a general contractor with more extensive arena type experience. Direct staff experience includes construction and oversight of long span steel projects, smaller scale sports facilities and officer-in- charge/program manager for the 1996 Olympics. As with most firms, CM's can serve/assist/fulfill other necessary roles for their clients. Cianbro emphasized their ability to provide assistance in engaging the business community as well as participate in fundraising if needed. The Hunt Group, by far, has the greatest overall direct experience with arenas. Several recent projects were very similar to the current proposal in Bangor (most of which Sink Combs and Dethlefs served as architect of record on). Their in- house team has substantially all of the specialized knowledge related to 10 201 programming, structural engineering and MEP. Hunt also noted the importance of including other third parties (food and beverage, private operator) as early on in the pre -construction process as possible. In addition, due to the large number of arena projects they perform, they have well established relationships with specialty vendors (i.e. seating systems, ice floor, security system, scoreboard/av packages) that would play an integral role in the outfitting of a facility should construction move forward. While the company is headquartered in Indianapolis, their workload routinely `takes them on the road". They have developed a methodology of reaching out to local subcontractors directly and through the various trade associations to introduce themselves and form relationships that foster success of the local workforce during a construction project. They do so through a variety of methods including; establishment of mentor/protege relationships or joint ventures where necessary. In addition, their vast experience includes numerous facilities in similar climates where snow loads and ice build-up issues have been addressed. Recommendation This process has proven that the City attracts a number of highly qualified vendors when bidding work. We have a great deal of comfort that any number of the firms that responded would do an outstanding job for the City. As the City shifts into different project delivery methodologies, we recognize the need to choose the right partner(s) to work with us. This point was underscored by all the respondents. As the panel scored the two respondents virtual equal, the focus shifted to what we do and don't need for services. We don't need a designer for this project, assuming we engage Sink Combs and Dethlefs. This project and the City needs a firm that will work harmoniously and closely with other team members, carefully assess constructability, identify potential challenges or issues with the proposed design, have the ability to develop effective alternative approaches/solutions to challenges, develop the most efficient construction approach and economical pricing for the project, and understand the importance of this project to the community and the region. Therefore, it is the interview panel's recommendation that the contract for Construction Manager at Risk — Preconstruction Services of a multi-purpose arena up to the schematic design phase be awarded to Cianbro. This recommendation is based on the City's familiarity and confidence in the qualifications of the proposed team members, our first-hand knowledge of Cianbro's team members, as well as their proven ability to satisfactorily resolve construction and financial challenges of extremely diverse projects. Cianbro's offer to the City is that the pre -construction manager fee of $175,000 will be turned back to the project, if the City were to move forward with a construction 10 '4:01 project within twenty four months. While not an integral part of the RFQ, the overall financial implications associated with construction services should a project move forward was also reviewed with each firm and Cianbro's fees were generally lower than Hunt's. Lastly, as we are all aware, this project has significant local and regional implications and has the potential to be the largest project the City may ever consider. Cianbro is most likely to understand the high profile nature of the project as well as the related implications. The end result of this process will inextricably link Cianbro with the outcome, thereby elevating the level of commitment they must have to ensure the overall success of the project.