Abstract. Creative Contracting Strategy Delivers Utah's Newest Biosolids Cogen Facility Using Progressive Design-Build

Transcription

1 Conference: Design-Build for Water/Wastewater Conference 2016 Paper/Presentation Title: Creative Contracting Strategy Delivers Utah's Newest Biosolids Cogen Facility Using Progressive Design-Build Authors: Kevin Cowan, North Davis Sewer District; Brandon Heidelberger, Brown and Caldwell; Ben McGeachy, MWH Constructors Contact: Brandon Heidelberger - bheidelberger@brwncald.com Abstract Creative Contracting Strategy Delivers Utah's Newest Biosolids Cogen Facility Using Progressive Design-Build North Davis Sewer District (NDSD) used the progressive design-build delivery method to implement an ambitious biosolids and cogeneration expansion project. This presentation will discuss how the use of progressive design-build has enhanced the development of what will become a flagship wastewater facility for energy efficiency. Thanks to an effective procurement plan, strong collaboration and a clear understanding of client priorities, this project is currently on track to be delivered more than $2M under the Guaranteed Max Price and three months ahead of schedule. Learning Objectives: Procurement Best Practices for Design-Builder Best Value Selection: The District wanted to secure the most qualified team members and select the equipment it wanted to maintain and operate for years to come. A quals-based approach that enabled owner involvement was best achieved through the progressive design-build delivery model. The District also aimed to support the local economy (and keep the community s money in the community) and have an early understanding of cost to secure adequate financing. Means for Successful Progressive Design-Build Project Procurement and Project Completion: With BC providing solid analysis of delivery methods, the District chose Progressive Design Build to ensure client priorities were achieved and realize the benefits as fast as possible by retaining control to select proven team, equipment, and other design features, flexibility to make design changes without needing to go back to the board for approval, supporting the local economy by maximizing local subcontractor involvement, early understanding of cost and an agreed upon Guaranteed Max Price, efficiency with a single-point of contact for delivery, innovative ideas to meet energy efficiency goal, managing multiple task orders to maintain cash flow. Project Planning and Execution Methods to Create Best Value Assets Using Design-Build: The New Cogeneration Facility Project replaces two, older technology engine-generators with high efficiency advanced reciprocating engine system (ARES) lean-burn engine-generators. This will allow the plant to fully realize current and future biogas production and expand capacity. The Primary Sludge Thickening Building Project includes the construction of a new 15,000 square foot building. It will add primary sludge and scum thickening to the existing biosolids treatment process to remove excess water, reduce the hydraulic and heating load on the digestion process, and increase capacity. How to Maximize Project Innovation Using Design-Build Project Delivery: The BC team helped save the District $30M. $22M Saved - The District avoided having to build two new digesters by constructing a new thickening facility. $8M Saved By conducting structural analysis and a condition assessment, BC was able to reuse existing tanks and covers. Installation of new engines will allow them to use 100% of their digester gas.

2 A Presentation by North Davis Sewer District Creative Contracting Strategy Delivers Utah s Newest Biosolids Cogeneration Facility Using Progressive Design Build

3 Today s Agenda Project Overview and Background Best Practices for Design- Builder Selection Progressive Design-Build Planning, Procurement and Completion Innovation Using Progressive Design-Build

4 Project Overview and Background

5 District service area and facilities 7 cities in 2 counties 80 square miles Population served 215, miles of sewer mains and over 1,840 manholes 34 MGD treatment plant Offsite biosolids storage Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 4

6 District Goals Cost effective solutions Proven team and performance World class plant High quality workmanship Single point of responsibility for design and construction Maximize involvement of local subcontractors Procurement of preferred equipment Owner involvement throughout We want it our way Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 5

7 Project overview When the plant s expansion is complete, North Davis Sewer District will have one of the most energy efficient facilities in the US with the ability to generate up to 90 percent of its energy needs. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 6

8 Why now? With Utah s population increasing and several of the biosolids treatment facilities at or over capacity, the District needed to expand and improve its service capacity. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 7

9 Recent primary digester loading Averaging Period Volatile Solids Loading (2008) (lbs /1000 cu ft/d) Volatile Solids Loading (2009) (lbs /1000 cu ft/d) Solids Retention Time (2008) (days) Solids Retention Time (2009) (days) 503 Requirement <120 <120 >15 > day avg Max. 30-day avg Max. 14-day avg Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater

10 Our team s innovative approach increased capacity to handle future growth The recommended biosolids process improvements were broken into three projects over a five-year period to maintain cash flow and maximize local involvement. Primary Sludge Thickening Building New Cogeneration Facility Secondary Digester Mixing and Heating Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 9

11 A closer look at the three projects Secondary Digester Mixing and Heating This project increases the digestion process capacity and brings the plant into compliance with State and Federal regulations. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 10

12 A closer look at the three projects New Cogeneration Facility Replaces two, older technology engine-generators with high efficiency advanced reciprocating engine system (ARES) lean-burn engine-generators. Will allow the plant to fully realize current and future biogas production and expand capacity. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 11

13 A closer look at the three projects Primary Sludge Thickening Building This project includes the construction of a new 15,000 square foot building. It will add primary sludge and scum thickening to the existing biosolids treatment process to remove excess water, reduce the hydraulic and heating load on the digestion process, and increase capacity. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 12

14 Evolution of the project The District expanded and improved the liquid treatment portion of its Wastewater Treatment Facility to handle projected future flows and pollutant loadings in the mid 2000s. In 2010, it shifted its focus to the biosolids portion of the facility in order to bring it up to the capacity and technology level of the liquid treatment facilities. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 13

15 Ultimately, the District wanted to ensure capacity to: reliably and safely treat future solids loads, provide a robust biosolids process using proven technology, reduce odors, improve air quality, increase overall efficiency, and meet current and future regulatory requirements. and we want all of it! Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 14

16 Simply stated Our goals will have been met if the project results in a high quality facility that we are genuinely happy with and not something that we just tolerate for the next 30 years, all the while regularly blaming engineers and contractors. In the end, we should all be proud to have been a part of the project. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 15

17 Best Practices for Design- Builder Selection

18 Understand and manage different business interests OWNER ENGINEER CONTRACTOR Cost control (project) Meet intent (it works) Workload management Schedule Sustained operations Cost control (contract) Positive Owner reference Business performance Liability control (risk management) Meaningful Owner s input Cost control (contract) Business performance Subcontractor relationship Risk equity Positive Owner reference Schedule Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 17

19 Conventional (DBB) project interaction Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 18

20 Design-Build (DB) project interaction Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 19

21 Progressive design-build project interaction Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 20

22 Choosing progressive design-build Having completed a highly successful liquids treatment expansion, the District wanted to secure proven team members and select the equipment it wanted to maintain and operate for years to come. The District also aimed to support the local economy and have an early understanding of cost to secure adequate financing. A quals-based approach that enabled owner involvement was best achieved through Progressive Design-Build. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 21

23 Benefits of Progressive Design-Build Approach Advantage Design- Build Design-Bid-Build Proven team and performance Yes No. Bidder s are not pre-qualified. Single point of responsibility Yes No. Owner between Engineer and Contractor. All work packages competitively bid Yes Yes Maximize local subcontractor involvement Open book contracting with savings returned to Owner Yes Yes No requirement for award to local subcontractors. No. All savings stay with Contractor. Construction involvement during design Yes No. Construction involvement begins after design and bid. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 22

24 Progressive design-build at North Davis Owner maintains control/input. Qualification selection of contractor Final cost and schedule known earlier Flexibility to make changes/select equip. Better project Operations input Innovative ideas to meet goals Team vs. adversarial relationship Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 23

25 Progressive Design-Build Planning, Procurement and Completion

26 Planning the project Owner defined criteria Operations and maintenance buy-in 3D visualization Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 25

27 Procuring the team Design-builder No selfperform Maximize local participation Bid packages tailored to local contracting community Prequalification Owner involvement Top 3 22 subcontractor bid packages ranging from $31,793 to $7,040, equipment bid packages ranging from $1,490 to $4,037,791 All work performed by contractors located within an hour of the plant Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 26

28 Continual improvement during construction Team members encouraged to bring ideas forward Weekly progress meetings served as framework for brainstorm sessions C&SU doesn t stop until we get it right Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 27

29 Operations & Maintenance buy-in Owner staff Routine job walks during construction Adherence to plant standards Active participants in C&SU process No long-term maintenance contracts Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 28

30 Open book financials Full disclosure guaranteed maximum price (GMP) GMP included project contingency and District s General Manager authorized to utilize without additional board authorization Monthly financial updates Unspent contingency returned to owner Project Progress and Payment Summary This section presents important data concerning payments authorized, change orders, progress status, and percent of work completed. A Progress curve is used as a graphical representation of the general progress of work and its relationship to the amount of contract time elapsed. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 29

31 Innovation Using Progressive Design-Build

32 New equipment maximized sustainability investment The District is capable of producing up to 100 percent of its process heating needs. The facility s new Cogeneration engines are nearly 40 percent more efficient than the former engines, which allows the District to use 100 percent of its biogas. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 31

33 Maximize cost savings through design and delivery Avoiding construction of two primary digesters $22M Saved. Existing secondary digester tanks and covers were able to be reused $8M Saved. Sufficient capacity until 2035 and beyond. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 32

34 Overcoming challenging site conditions Construction adjacent to existing structures. High ground-water. Deep excavation and unstable soils. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 33

35 Being a good neighbor Environmentally sensitive design decreased NOx emissions by 61%. Angled stacks direct sound away from nearby communities. Odor mitigation and removal of solids storage. Environmentally sensitive lighting. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 34

36 Progressive Design-Build helped the District achieve its priorities: Retaining control to select proven team, equipment, and other design features Flexibility to make design changes without needing to go back to the board for approval Supporting the local economy by maximizing local subcontractor involvement Early understanding of cost and an agreed upon Guaranteed Max Price Delivering efficiently through a single-point of contact Encouraging innovative ideas to meet energy efficiency goal And realize the benefits as quickly as possible. Brown and Caldwell MWH Constructors NDSD 2016 Design-Build for Water/Wastewater 35

37 Thank you. Questions?