Piloting Procurement Approaches for a $1 Billion Sewer Rehabilitation Program. Richard Stahr, P.E., Brown and Caldwell

Transcription

1 Piloting Procurement Approaches for a $1 Billion Sewer Rehabilitation Program Richard Stahr, P.E., Brown and Caldwell 1

2 Outline HRSD Overview Wet Weather Consent Decree I/I Reduction Program Pilot Projects Implications for the Full Scale Program 2

3 HRSD A political subdivision of the Commonwealth of Virginia Formed in 1940 through public referendum to address pollution of Chesapeake Bay waters and closure of oyster beds Broad powers under the enabling legislation Commission appointed by Governor s office Brown and Caldwell 3

4 HRSD System Serves Southeast Virginia 1.7 million people 14 Localities 430 miles of force mains 83 PS 50 miles gravity pipe 9 major treatment plants Brown and Caldwell 4

5 HRSD System 450,000+ connections 5,800 miles gravity sewer ~ 4000 miles private sewers 1,580 public sewer pump stations ~ 1500 private sewer pump stations 1,120 miles of force main 2,800 sq. mile service area 1.7 million population 9 Wastewater Treatment Plants 250 MGD Permitted Capacity Brown and Caldwell 5

6 Enforcement Happens Despite Great Performance EPA declared their intention to institute an enforcement action in 2005 Region comes together and develops a State Consent Order covering HRSD and 13 Localities in 2007 EPA and HRSD negotiate a Federal Consent Decree similar to the State Order in 2008 & 2009 Federal Decree entered with court in 2010 Brown and Caldwell 6

7 Consent Decree Objectives To fulfill the objectives of the Clean Water Act and to achieve full compliance with the Act Goal: Elimination of all SSOs from the HRSD Sanitary Sewer System, all capacity-related SSOs from the Regional Sanitary Sewer System and Prohibited Bypasses and any other unpermitted or unauthorized discharges from the STPs Brown and Caldwell 7

8 Hybrid Regionalization Localities retain ownership of their assets HRSD takes responsibility for capacity for all public assets HRSD pays for and executes rehab and capacity enhancements in both their and Locality systems Memorandum of Agreement memorializes the deal Brown and Caldwell 8

9 RWWMP Approach Reduce I/I + Increase Wet Weather Capacity Brown and Caldwell 9

10 Regional I/I Reduction Approach Rank order the basins from leakiest to tightest based on I/I density (gallons per acre-day) Estimate rehab effectiveness (leakier basins higher I/I reductions) Scale reduction to effort 70% I/I Reduction (max) = 100% Rehab 7% I/I Reduction = 30% Rehab (min) Work until optimum level of I/I removal in that STP service area is achieved Develop cost based on the amount of infrastructure touched Brown and Caldwell 10

11 Regional I/I Reduction Catchment Types Three types of rehabilitation: Comprehensive (the leakiest) Data Driven (leaky and at least 25% SSES data) General (leaky but less than 25% SSES data) STP Service Area I/I Density, 10-Year Peak RDII GPD/Acre Sewered Area (GPAD) Minimum Comprehensive Level Army Base 7,900 12,000 Atlantic 5,200 12,000 Boat Harbor 8,600 19,000 James River 6,500 16,000 Nansemond 3,500 8,000 Virginia Initiative 8,700 20,000 Williamsburg 3,600 9,800 York River 3,400 7,500 Brown and Caldwell 11

12 Regional I/I Reduction Program Rehabilitation of 290 catchments Peak I/I reduction = 170 MGD Estimated cost = $1.13 B $980 M in public infrastructure $150 M in private infrastructure Brown and Caldwell 12

13 Distribution of Catchment South Shore Brown and Caldwell 13

14 Pilot Projects

15 Goals of the Pilot Projects Test pros and cons of procurement/contracting approaches Test assumptions of cost and I/I removal effectiveness Work out interactions with Localities Work out interface with public and property owners Brown and Caldwell 15

16 Procurement Approaches Conventional Design-Bid-Build Proven delivery method Low bid wins Owner takes I/I reduction outcome risk Design Build Profit at risk against an I/I reduction target DB selects rehab approach and extent Unit Price (Find and Fix) Use existing unit price contract vehicle Close couple investigation and rehab Owner takes I/I reduction risk 16

17 Design Build Project

18 Catchment Stats 12,300 linear feet public sewer 11,400 linear feet public laterals Total Public Side I/I =560,000 gpd Target I/I Reduction = 250,000 gpd (44%)

19 Price Proposal Summary Design/ Construction Profit Profit, % of Total Total (Construction Cost Limit) Proposer A $990,198 $112,149 10% $1,102,347 Proposer B $929,000 $221,000 19% $1,150,000 Proposer C $1,306,045 $293,585 18% $1,599,630

20 Proposer B: Design Called for Grouting All Mainlines and Laterals That Fail

21 Proposer C: Planned Testing Prior to GMP and Targeted Rehab 3,900 lf CIPP 75 laterals 24 MH rehabs 50 clean-outs

22 Procurement Allows Change in Construction Cost Limit After NTP After contract execution, design period allowed DB to investigate and complete design Based on investigation and design, DB to prepare and submit a Guaranteed Maximum Price (GMP) If GMP>CCL, Owner has off ramp In this case, no substantial further investigations and GMP=CCL

23 Design Build Procurement/Delivery Request of Qualifications (6) Pre-Qualifications Meeting (23) Stipend Paid to firms not Selected Shortlist(3) Request of Proposals (Construction Cost Limit) Interviews Selection/ Negotiations Design/GMP Construction Post Rehab Flow Monitoring I/I Reduction Target Achieved?

24 Selection Criteria Qualifications/ Experience 30 points Technical Proposal 30 points Price 40 points

25 Qualifications Criteria Sewer rehab experience Personnel experience Record of claims References Design build experience Financial condition

26 Technical Proposal Evaluation Project Definition Management Approach Schedule Innovation Work Plan Design

27 Price Proposal Evaluation Total Cost (Lowest Price/Other Price)x30 % Profit Put at Risk (Other Profit %/Highest Profit%)x10

28 DB Lessons Learned DB community is unaccustomed to taking on the risk for I/I removal Clarity about acceptable technologies is important Contract documents need to be specific about how open book costing will be implemented Weighting of price component should not be overemphasized

29 Benefits of DB Schedule acceleration Prompted innovation in the field Transfers risk from Owner be careful to achieve balance

30 Pilot Outcomes

31 Pilot Project Characteristics Contract Rehab Type Public or % Peak I/I, GPAD Method Private Public mgd VB340 Design-Build Data Driven Public 50% ,709 VB111 Unit Price Data Driven Both 45% ,735 NN008 Design-Bid-Build Comprehensive Public 56% ,515 Brown and Caldwell 31

32 Planning vs. Actual Pilot Rehab Planning Cost, $ Public Mains, ft. Public Laterals, ft. Private Sewers, ft. Trenchless Rehabilitation, % I/I Reduction, mgd $/gpd removed VB340 $1.7M 3,353 5, $6.53 VB111 $2.2M 3,227 1,700 8, $4.28 NN008 $3.0M 10,880 3, $3.61 Actual Cost, $ Public Mains, ft. Public Laterals, ft. Private Sewers, ft. Trenchless Rehabilitation, % I/I Reduction, mgd $/gpd removed VB340 $0.8M 8,036 6, $7.27 VB111 $2.1M 1, , $4.76 NN008 $1.2M 9,878 5, $0.88 Brown and Caldwell 32

33 Portfolio Approach for Success Planning Actual Cost, $M I/I Reduction, gpd $/gpd Removed Cost, $M I/I Reduction, gpd $/gpd Removed VB340 $1.7M 250,000 $6.80 $0.8M 110,000 $7.27 VB111 $2.2M 560,000 $3.93 $2.1M 440,000 $4.75 NN008 $3.0M 830,000 $3.61 $1.2M 1,360,000 $0.88 TOTAL $6.9M 1,640,000 $4.21 $4.1 1,910,000 $2.14 Brown and Caldwell 33

34 Conclusions All procurement approaches are viable DBB takes the longest to complete DB offers approach creativity Unit Price is fast and efficient The market is not fully prepared to risk profit for I/I reduction A portfolio approach in the full scale program will be important for success 34

35 Thank You