Pioneering Alternative Project Delivery in Ohio

Transcription

1 Pioneering Alternative Project Delivery in Ohio Ali Bahar, PE Principal Engineer Metropolitan Sewer District of Greater Cincinnati Tim Koch, PE, Vice President, Brown and Caldwell 1

2 Agenda Construction reform in Ohio now allows AD MSD s response to construction reform Project prototype: Oakley Station Questions/ audience discussion 2

3 MSDGC Regional service since 1968 Oversight by Hamilton Co. Board of Commissioners 50 yr. contract with City of Cincinnati Service population 850, ,000 service connections, 3,000+ miles of sewers 7 major treatment plants, 120 pumping stations, 185 mgd 3

4 MSD s First DB Project Engineering Building Completed before construction reform by special City legislation 59,000 sq. ft. office building Design completed in six months Construction completed in 12 months Cost: $1,000,000 under budget Schedule: 3 mos. early 4

5 Oakley Station Separation Sewer First MSDGC project after HB to 72 inch Storm Sewer Tunnel Eliminate two CS0 s AD to fast track schedule to meet new development Construction completed in 12 months $3.8 Million in savings over developers original estimate Potential $400k more in scope reductions On Budget and schedule for December 2013 Completion 5

6 Ohio Construction Reform 6

7 Ohio Construction Reform Implementation First change in public construction contracting in 134+ years HB 153 signed by Governor Kasich on 6/30/11 Administrative rules and contract documents finalized State Architect s Office posts documents and guidance: see 7

8 Ohio Construction Reform: From 40,000 Ft Provides broad latitude for project delivery alternatives Qualifications can now be an important selection consideration for contractors Law is prescriptive, must follow regulations: Best Value Selection procedures Criteria for contracts and subcontracts. 8

9 Ohio Construction Reform: From Treetop Retains multiple prime DBB as default method New tools added to the Project Delivery Toolbox: Single prime (GC) may be used on any project (no $ limit) Construction Management at Risk Construction (CMAR) Design Build (DB) project delivery Open book, negotiated construction pricing Criteria engineer/architect required to assist owner (In-house or consultant selected by QBS) 9

10 New Procurement Options Available in Ohio Multiple Prime General Contracting Construction Management at Risk Design-Build Single Prime General Contracting Owner Owner Owner Owner Designer Plumbing Contractor General Contractor HVAC Contractor Electrical Contractor Designer CM Design/ Builder Designer General Contractor Traditional Approach Alternative Delivery Approaches New approaches available with passage of HB 153 in

11 Procurement Significantly Different for DB PRELIMINARY STEPS 1. Select the criteria engineer 2. Develop qualifications criteria 3. Develop scoring method 4. Select the evaluation committee QUALIFICATION PHASE Quals evaluation Shortlist PROPOSAL PHASE Technical evaluation Pricing evaluation Selection and negotiation 5. Create/make public announcement Two Step Procurement (Described in the Summary of Statutory Requirements) 11

12 Evaluation Team Responsibilities Establish Selection Requirements Identify any minimum or mandatory technical requirements by owner Required performance criteria for: Schedule Approach to work (including self perform) Work sequencing Performance history Approaches to performance specifications Determine technical and pricing proposal evaluation criteria 12

13 Evaluation Team Responsibilities Establish Commercial Requirements Form of contract (state developed or others listed) Payment terms/how price will be set Pricing proposal and project estimate Establish pricing criteria: Design services fee (if DB) Preconstruction fee DB or CMAR services fee General conditions Contingency Guaranteed Maximum Price (GMP) Amount of stipend (if any) 13

14 MSDGC Organizational Response to Reforms 14

15 MSDGC Alternative Delivery Considerations Save Money Shorter project schedules (time value of money) Competition = market innovation (design ideas and construction methods) Improve alignment of design engineer and contractor to reduce change orders and claims $ 15

16 MSDGC Using Reform Law to Achieve Business Efficiency Objectives Reorganized project delivery team Department-wide training Helping OEPA understanding approval process Revising business processes 16

17 CIP Review Process To Consider Design Build Capital Improvement Plan Screening Criteria Chosen Delivery Method Project Charter Business Case Evaluation Risk Profile Schedule Drivers Budget Constraints Innovation Special Requirements DBB DB CMAR 17

18 MSDGC Considerations for DB Projects DB Works Well When: Time is critical Existing conditions and desired outcomes are well defined Project uses well understood technology MSDGC staff willing to relinquish some control Early contractor input will save time and money

19 MSDGC Procurement Manual Revisions to Support DB Process updates: RFQ RFP Evaluation process Selection process Negotiation process Contract documents

20 MSD Prototyping DB: Oakley Station Separation Sewer Project 20

21 Oakley Station Prototype Construction reform provides MSD tools to reduce the cost of capital projects. Prove it. Oakley Station is DB prototype project: (lessons learned will guide future projects) Expedited project completion needed to facilitate development Preliminary/concept design prepared by developer (least cost to MSD) Eliminate two CSO s 15 Months after NTP 21

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23 Urban Renewal is Supported by Expedited Infrastructure Construction Brown and Caldwell 23

24 Contractor Procurement Completed in Eight Months MARCH 14, 2012 MAY 1 JUNE 7 June 22 Authorize Statement of Qualifications Issuance Develop statutorilyrequired internal processes* Issue RFQ Legal Notice Receive, review, and rank RFQs Select short-list; issue RFP for technical details and GMP AUGUST 22 AUGUST 29 NOVEMBER 15 March 15, 2013 DECEMBER 31, 2013 Legislative approvals necessity and funding Receive Proposals Negotiate contract & Issue NTP Design Complete Construction Complete *Criteria Engineer appointment; evaluation committee appointment; SOQ RFQ development; RFQ scoring methodology 24

25 Procurement Structured to Promote Fair Competition & Expedite a Good Decision Draft RFP issued for review and comment by respondents Pre-proposal meeting before final RFP Interviews very helpful to Selection Committee Best value selection considering approach, cost, and other factors 25

26 Oakley Station RFQ Evaluation Criteria Technical Qualifications Project team Experience with project type Local Experience Experience with DB or CMAR delivery Financial Qualifications Project size Bonds Line of credit Balance sheet Safety Record 26

27 Proposal Evaluation Criteria Set to Manage Risk Approach to Design & Construction (35%) Permitting, Design Concepts & Methods Coordination, Logistics, Geotechnical Guaranteed Maximum Price (40%) Project Management Plan (25%) Personnel & Team Structure Controls: Cost, Schedule, Safety, Quality 27

28 Competition Saved MSD Big Money Proposal Cost Element Jay Dee Constructors Respondent Quote Layne Heavy Civil Ulliman Schutte Design Services Fee (L.S.) $ 1,000,000 $ 781,895 $ 666,000 Pre-Construction Services Fee (L.S.) $ 500,000 $ 288,606 $ 133,000 General Conditions Cost (L.S.) $ 2,000,000 $ 865,485 $ 777,000 Cost of Work $ 6,300,000 $ 8,010,555 $ 6,116,000 Subtotal: $ 9,800,000 $ 9,946,541 $ 7,692,000 Design Build Services Fee (L.S.) $ 900,000 $ 1,180,294 $ 889,000 Subtotal: $ 10,700,000 $ 11,126,835 $ 8,581,000 Contingency (L.S.) $ 500,000 $ 421,608 $ 306,000 GMP $ 11,200,000 $ 11,548,443 $ 8,887,000 28

29 Experienced Client Advocate Helped Drive The Procurement Process Excellent Teamwork Among Agency Stakeholders Expedited Procurement Worked the Market for Fair & Open Competition Stipend (Suggest 0.2 to 0.6%) Clear Requirements Promoted Interest Procedural Include Contract in RFQ Request Comments Include private proprietary meetings with short listed firms 29

30 Final Comments Issue with Ohio DB law Can t select subcontractors until Contract is signed Subcontractors are often important part Oakley tunnel sub Minimum 3 bids - Contractor must submit a sealed Bid if desires to self preform HB 153 allows Single Prime DBB vs. Multi-prime DBB Research shows AD can cut project costs 5 to 10% Oakley saved 20% Brown and Caldwell 30

31 Final Comments Hard for Owners to give up control of DBB. Cultural change embrace AD Level of detail to put into bridging documents more detail less innovation and less potential savings Need to find out the quality level the owner wants must haves! Keys to Good AD Project Pick the right team Value Based Selection Give them flexibility and opportunity to succeed - reduce the must haves Brown and Caldwell 31

32 Questions? Audience Discussion Ali Bahar, PE Principal Engineer, Metropolitan Sewer District of Greater Cincinnati Tim Koch, PE Vice President, Brown and Caldwell (513) (513)