TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: RFQ for On-Call PM/CM Contracts
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider approving the issuance of a Request for Qualifications (RFQ) for On-Call Project Management/Construction Management (PM/CM) contracts effective July 1, 2021.
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Infrastructure Modernization
On-call PM/CM contracts support the execution of the District’s Capital Improvement Plan by having specialized resources available to address specific and often short-term project needs. Having these resources on-call and readily available saves months of procurement time.
BUDGETARY/FISCAL IMPACT:
There is no impact to budget as this solicitation will simply create a pool of contracts available as needed for future individual contract task orders. Funding for the task orders will be identified when the services are required, generally from existing capital project budgets.
BACKGROUND/RATIONALE:
The District’s project portfolio frequently requires specialized PM/CM support to supplement the efforts of Architectural and Engineering services and the District’s in-house staff. These efforts include, but are not limited to, independent cost estimates; scope development; construction oversight; construction inspections change order management safety compliance monitoring, request for information and submittal administration; schedule monitoring; and project specification monitoring. Projects often need these specialized skills for a limited time period ranging from days to months depending on the situation.
On June 13, 2018, the District awarded a series of on-call PM/CM contracts. These contracts specified an offering period when task orders could be issued through June 30, 2021. Establishing the set of on-call PM/CM contracts will permit the District to engage the required services by issuing task orders when necessary.
The District intends to enter into multiple on-call PM/CM contracts. Each selected firm will be limited to an annual amount of $1,000,000 with a maximum aggregate of $3.0 million for three years. The per task order minimum will be $2,500.
Each contract will have a three-year offering period and a five-year contract term. This allows firms tasked with work in Year 3 to complete the work before the actual contract term expires.
The resulting contracts will be on-call, multiple-award task order-based contracts. When the need for services under these contracts is identified, the District will engage the services via the existing requisition/purchase order system, in a similar manner to the way on-call Architecture and Engineering contracts are used. The procurement approach used for the subject contracts will be qualifications-based, price not determinative, Brooks Act, as defined by FTA Circular 4220.1F Rev 3. An outreach campaign will be conducted and aimed at increasing the level of DBE/SBE participation in these contracts.
ADVANTAGES/DISADVANTAGES:
There are a number of advantages associated with continuing the use of on-call PM/CM contracts, including:
1. Relatively quick access to specialized skills when necessary;
2. Pay as you go approach, so the District pays only for the services utilized; and
3. No cost to the District if the services are not required or used.
There are no immediate disadvantages to re-soliciting these on-call contracts.
ALTERNATIVES ANALYSIS:
Staff identified three alternative approaches to obtain the services intended for these on-call contracts. It is important to note that having these on-call contracts in place would not preclude the District from using any of these alternative methods.
1. Hire additional employees. Adding staff to handle the wide range of technical specialties and paying them full-time wages and benefits when they are only needed part-time is not cost-effective.
2. Individual Procurements. The District could elect to solicit proposals for each individual PM/CM engagement as specific needs arise. This would result in delayed project implementation and increased workload among project managers and contract specialists with no value added.
3. Temporary Employees. The District could use temporary employees hired through a placement agency for the duration of a particular project. This approach is not generally a good fit because the irregular workload would not align well with the steady full or part-time schedule of a temporary employee.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Board Policy 465, Procurement Policy
SR 17-233 on August 9, 2017 - Consider authorizing the solicitation of on-call Project Management / Construction Management Contracts
SR 17-233a on June 13, 2018 - Consider awarding On-Call Project Management / Construction Management Contracts
ATTACHMENTS:
None
Prepared by:
Joe Callaway, Director of Capital Projects
Approved/Reviewed by:
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Fred Walls, Acting Director of Procurement and Materials
Chris Andrichak, Acting Deputy Chief Financial Officer
Salvador Llamas, Chief Operating Officer
Claudia L. Allen, Chief Financial Officer
Jill A. Sprague, General Counsel