POSTAL STATION B ENVELOPE REHABILITATION & BASE BUILDING UPGRADE CONSTRUCTION MANAGER FAIRNESS MONITOR FINAL REPORT
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1 POSTAL STATION B ENVELOPE REHABILITATION & BASE BUILDING UPGRADE CONSTRUCTION MANAGER FAIRNESS MONITOR FINAL REPORT Submission Date: September 23, 2015 Submitted To: Director, Fairness Monitoring Departmental Oversight Branch Public Works and Government Services Canada Submitted By: RFPSOLUTIONS INC Carling Ave., Suite 202 Kanata, Ontario, Canada K2K 2A4 Telephone: (613) Fax: (613) Website:
2 TABLE OF CONTENTS 1. Introduction Project Requirement Attestation of Assurance Methodology Fairness Monitor Activities and Observations ) Procurement Planning/Pre-Issue Stage ) LOI Posting ) LOI Close ) LOI Evaluation Instructions ) LOI Submission Evaluation ) RFP Period ) RFP Close ) Evaluation Instructions ) Administrative Review ) Technical Evaluation ) Price Evaluation and Bidder Selection ) Communications and Debriefing Reference Documents i -
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4 1. INTRODUCTION RFP Solutions Inc. was engaged as a Fairness Monitor to observe the competitive procurement process for a Construction Manager for the Postal Station B Envelope Rehabilitation and Base Building Upgrade Project, managed by Public Works and Government Services Canada (PWGSC). RFP Solutions Inc. was engaged on April 15, RFP Solutions Inc. is an independent third party with respect to this activity. The procurement process was conducted through a two phase solicitation process. A prequalification of interested construction management firms was conducted under a Letter of Interest (LOI) process, issued by PWGSC as Solicitation Number EP /A. This phase required firms to demonstrate their experience and capacity to carry out the work. The firms that met the prequalification requirements as defined in the LOI were then invited to submit competitive bids during the subsequent Request for Proposal (RFP) phase of the solicitation. This RFP was issued by PWGSC as Solicitation Number EP /B. The RFP phase covered the detailed approach to the work, and the pricing and terms offered, and constituted the bid to be evaluated. We hereby submit this Final Report, covering the activities of the Fairness Monitor, commencing with the draft LOI prior to posting on continuing through to the responses to enquiries from potential Bidders leading up to the LOI submission closing period and evaluation of the LOI submissions received. This report also covers the Fairness Monitor activities with respect to the development of the subsequent RFP, a Bidder site visit and response to enquiries from potential Bidders leading to the RFP submission closing period and finally the evaluation of bids leading to the identification of the successful Bidder. The report includes our attestation of assurance, a summary of the scope and objectives of our assignment, the methodologies applied and relevant observations from the activities undertaken
5 2. PROJECT REQUIREMENT Postal Station B (PSB) is a 'Classified' federal heritage building located at Sparks Street, Ottawa, Ontario that requires major rehabilitation. Currently it serves a dual purpose by continuing to function as a postal facility while also providing office accommodations to the Privy Council Office (PCO). PSB is a 75-year old building that has not undergone a comprehensive rehabilitation since its original construction. The project scope of work encompassed by the PSB Envelope Rehabilitation and Base Building Upgrade includes the following: envelope conservation, interior architectural work (including asbestos abatement), heating system replacement, plumbing system upgrade, HVAC upgrade, sprinkler upgrade, electrical system upgrade, control system upgrade, and seismic upgrade. PWGSC requires a Construction Manager to conduct services consisting of Pre-Construction Services, Construction Services, Building Components and Connectivity (BCC) and Postconstruction Services to deliver a complete project in a partially occupied building. Construction shall include major works to rehabilitate the building envelope and base building systems of the Postal Station B building. The Construction Manager is expected to deliver the following benefits to the project by providing, but not limited to the following services: Advisory and support services Project Administration Work Packaging Cost Management Time Management (Scheduling) Risk Management Scope Control and Management Quality Control & Quality Assurance General Contractor Services o Function as Constructor including coordinating and directing Subcontractors retained by the Construction Manager, ensuring the continuous safety management and protection of the Site and the general public near the Site, o Subcontract construction Work using competitive bidding processes, with prequalification when warranted. o Pre-purchase key materials as needed. Site logistics coordination Mechanical & electrical interference coordination drawings A Prime Consultant was procured through a separate process undertaken by PWGSC to support this project. The role of the Prime Consultant is to review related documentation, recommend - 4 -
6 further examination as required, prepare the design and construction tender documents, and provide construction and contract administration including resident site services, cost, scheduling and project control and commissioning services required for this project
7 3. ATTESTATION OF ASSURANCE The Fairness Monitor hereby provides the following unqualified assurance statement concerning the competitive procurement process for a Construction Manager for the Postal Station B Envelope Rehabilitation and Base Building Upgrade Project. It is our professional opinion that the competitive process for the Construction Manager for the Postal Station B Envelope Rehabilitation and Base Building Upgrade Project we observed, was carried out in a fair, open and transparent manner. Original signed by Original signed by Steve Johnston Managing Director, RFPSOLUTIONS INC. Fairness Monitor Specialist Stephen Fleming, P.Eng. Fairness Monitor Team Leader - 6 -
8 4. METHODOLOGY In accordance with the terms of our engagement, we familiarized ourselves with the relevant documents, reviewed the LOI and RFP documents prior to release, observed the LOI and RFP solicitation activities and the post-solicitation period, including the evaluation of bids, identifying fairness-related matters to the Contracting Authority and verified that responses and actions were reasonable and appropriate. Section 5 of this report identifies the specific activities and observations of the Fairness Monitor in respect of those activities
9 5. FAIRNESS MONITOR ACTIVITIES AND OBSERVATIONS 5.1) PROCUREMENT PLANNING/PRE-ISSUE STAGE RFP Solutions Inc. was engaged to commence Fairness Monitoring activities beginning with the development of the LOI. A review of the drafts and final LOI documentation was conducted. This included a review of the: General Information; General Procurement Approach; Description of Prequalification Submission Requirements and Evaluation; Phase Two Request for Proposal; General Instructions to Bidders; General Information and Instruction for Prequalification; Prequalification Requirements; Experience Certification. The Fairness Monitor provided assurance as to the neutrality of the requirements, the objectivity of evaluation criteria and process; and the clarity of the documentation to support understandability by Bidders in preparing their submissions, as well as to mitigate the potential for inconsistency or errors in the eventual application of evaluation criteria by the Evaluation Committee. Observations In reviewing the draft LOI documentation, no fairness issues were observed. 5.2) LOI POSTING The LOI was issued to potential Bidders via buyandsell.gc.ca on March 13, 2015 with the final closing date on April 9, 2015 at 2:00 pm Eastern Daylight Saving Time. A total of four questions were received. Responses to the questions were provided to all potential Bidders as amendments through one (1) Solicitation Amendment document posted to which also included three (3) amendments to the terms and conditions of the solicitation. The Solicitation Amendment document was reviewed by the Fairness Monitor prior to its release. Observations The Fairness Monitor reviewed all questions and answers and amendments prior to issuance. No fairness issues were observed
10 5.3) LOI CLOSE The Fairness Monitor discussed the manner in which the responses to the LOI were received and handled with the Contracting Authority. Observations Ten (10) submissions were received and handled in accordance with the submission requirements and deadline stated in the LOI. No fairness issues were observed. 5.4) LOI EVALUATION INSTRUCTIONS Prior to the evaluation of the LOI submission, the Fairness Monitor reviewed the evaluation guidelines, including evaluator responsibilities, code of conduct, security, confidentiality and conflict of interest requirements, and evaluation methodology. The Fairness Monitor also participated in a pre-evaluation workshop with the Evaluation Committee to address the principles of fairness in evaluating submissions. The Fairness Monitor provided assurance as to the impartiality of evaluation methodology. Observations The Fairness Monitor reviewed the evaluation methodology and related requirements and observed no fairness considerations. 5.5) LOI SUBMISSION EVALUATION Following LOI closing, a review of the prequalification mandatory requirements was undertaken by the Contracting Authority of the ten (10) submissions received. The evaluation of the LOI submissions was undertaken on April 22, Initially, four (4) submissions were deemed to be responsive to these prequalification requirements as stated in the LOI. The six (6) Bidders which did not qualify were notified on April 23, 2015 and provided with the opportunity to revise and resubmit their application as per the provisions of the LOI process. Three (3) of the six (6) firms resubmitted and these submissions were evaluated on May 11, As a result, two (2) additional firms were deemed qualified for a total of six (6). Both the successful and unsuccessful firms were notified on June 1, The subsequent RFP (Solicitation Number EP /B) was posted to buyandsell.gc.ca on July 13, 2015 with a final closing date of September 9, 2015 at 2:00 pm Eastern Daylight Saving Time. Qualified firms were notified of the posting of the RFP and its availability on - 9 -
11 buyandsell.gc.ca. Observation The Fairness Monitor reviewed the results of the evaluation and ratings and observed no fairness issues. 5.6) RFP PERIOD Following the release of the RFP, the Fairness Monitor attended the optional site visit at Sparks Street, Ottawa, Ontario on August 6, Two (2) Bidders attended. The Bidders attending the site visit were provided with a CD containing additional building drawings and background material. This information was also available to those firms not in attendance by request to the Contracting Authority. In accordance with the Project Brief, which formed part of the RFP, all potential Bidders had the option of obtaining the CD at the site visit or upon request to the Contracting Authority. Five (5) addenda with three (3) amendments to the terms and conditions of the solicitation were issued via buyandsell.gc.ca. The addenda also included responses to nine (9) questions from potential Bidders. Each addendum was reviewed by the Fairness Monitor. Observation No fairness considerations were identified with respect to the notifications to Bidders, the addenda or the conduct of the site visit. 5.7) RFP CLOSE At close of the RFP, two (2) bids were received. The Fairness Monitor discussed the manner in which the bid responses to the RFP were received and handled with the Contracting Authority. Observations Two (2) bids were received for the RFP and handled in accordance with the deadline and requirements stated in the RFP. No fairness issues were observed. 5.8) EVALUATION INSTRUCTIONS Prior to bid evaluations, the Fairness Monitor again reviewed the evaluation guidelines, including evaluator responsibilities, code of conduct, security, confidentiality and conflict of
12 interest requirements, and evaluation methodology. The Fairness Monitor also participated in a pre-evaluation workshop with the Evaluation Committee to address the principles of fairness in evaluating bids. The Fairness Monitor provided assurance as to the impartiality of evaluation methodology. Observations The Fairness Monitor reviewed the evaluation methodology and related requirements and observed no fairness considerations. 5.9) ADMINISTRATIVE REVIEW Following RFP closing, a review of administrative mandatory requirements was undertaken by the Contracting Authority of the two (2) bids received. Both bids were deemed to be responsive to these requirements as stated in the RFP and therefore eligible to proceed to evaluation. The Fairness Monitor reviewed the results of the administrative review to assess them against the requirements in the RFP. Observation Based on the Fairness Monitor s review of the assessment of Bidders compliance with the administrative mandatory requirements, the Fairness Monitor observed no fairness considerations. 5.10) TECHNICAL EVALUATION The RFP required an overall minimum technical evaluation threshold to be deemed a responsive bid and proceed to the financial evaluation. Each of the bids was first individually reviewed and scored by each evaluator. The evaluators then convened at a consensus meeting on September 15, 2015 to identify the technical score of each of those bids. The Fairness Monitor was present and monitored the technical evaluation consensus process. The Fairness Monitor provided assurance that it was undertaken in a consistent fashion and that the results reflect the consensus of all evaluation board members. Both bids achieved the minimum technical evaluation threshold to be deemed a responsive bid and proceed to the financial evaluation
13 Observation The Fairness Monitor oversaw and reviewed the results of the technical evaluation and observed no fairness issues. 5.11) PRICE EVALUATION AND BIDDER SELECTION In accordance with the RFP, a total evaluated price was provided by each of the Bidders. The selection of the successful Bidder was based on the responsive bid with the lowest Evaluated price per Point (Evaluated price per Point = Total Bid Price / Technical Score). The Contracting Authority performed due diligence and verified the pricing details on the form provided by the Bidder. A financial evaluation summary sheet was prepared by the Contracting Authority and reviewed by the Fairness Monitor. The verification of the security requirements was completed and a recommendation to award to the successful Bidder was initiated. Observation The selection of the successful Bidder was consistent with the provisions and methodology outlined in the RFP. 5.13) COMMUNICATIONS AND DEBRIEFING This section will be completed as an Addendum to this report following completion of contract award and, as requested, debriefing of Bidders
14 6. REFERENCE DOCUMENTS The following documents are referenced by number in this report and unless otherwise indicated, are available through PWGSC. Reference Documents # Document Document Date/Number 1 Letter of Interest Application for Prequalification for the Postal Station B Envelope Rehabilitation and Base Building Upgrade Project: Construction Manager (EP /A) 2 Solicitation Amendment No. 001 Construction Management Services (EP /A) 3 Request for Proposal Construction Management Services (EP /B) 4 Solicitation Amendment No. 001 Construction Management Services (EP /B) 5 Solicitation Amendment No. 002 Construction Management Services (EP /B) 6 Solicitation Amendment No. 003 Construction Management Services (EP /B) 7 Solicitation Amendment No. 004 Construction Management Services (EP /B) 8 Solicitation Amendment No. 005 Construction Management Services (EP /B) March 13, 2015 March 25, 2015 July 10, 2015 July 13, 2015 July 30, 2015 August 20, 2015 August 25, 2015 August 28,
15 November 9, 2015 ADDENDUM TO THE FINAL REPORT Addendum to the Fairness Monitor Final Report dated September 23, 2015 pertaining to the competitive procurement process for a Construction Manager for the Postal Station B Envelope Rehabilitation and Base Building Upgrade Project, issued by Public Works and Government Services Canada (PWGSC) as a result of Solicitation Number EP /B. This Addendum to the Fairness Monitor Final Report covers the period following the conclusion of the evaluation phase and includes contract award and an allowance of time during which proponents could pose questions or request a debriefing. The notification of contract award was posted on BuyandSell.ca on September 30, The unsuccessful bidder was subsequently advised by on September 30, 2015 that their bid was not accepted for contract award and that they were entitled to a debriefing. The unsuccessful proponent requested a debriefing. The debriefing of this proponent was conducted by the PWGSC Contracting Authority and Technical Authority on October 28, The FM was present to observe that the debriefing was conducted in a fair, open and transparent manner. Attestation of Assurance The FM hereby provides the following unqualified assurance statement concerning the competitive procurement process for a Construction Manager for the Postal Station B Envelope Rehabilitation and Base Building Upgrade Project. It is our professional opinion that the Construction Manager for the Postal Station B Envelope Rehabilitation and Base Building Upgrade Project solicitation process we observed, was carried out in a fair, open and transparent manner. Original signed by Original signed by Steve Johnston Managing Director, RFPSOLUTIONS INC. Fairness Monitor Specialist Stephen Fleming, P.Eng. Fairness Monitor Team Leader
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