COUNTY OF SACRAMENTO CALIFORNIA For the Agenda of May 28_ 2008 by lifemate

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									                               COUNTY OF SACRAMENTO
                                    CALIFORNIA

                                                                              For the Agenda of:
                                                                                   May 28, 2008
                                                                                Time: 2:30 p.m.


To:           Board of Supervisors

From:          Sacramento County Airport System

Subject:      Introduce And Waive Full Reading Of The Ordinance Amending Chapter 2.61
              (Section 2.61.057), Title 2, Of The Sacramento County Code Relating To
              Contracting Authority (Introduce Ordinance, Waive Full Reading And Continue
              To June 3, 2008 For Adoption); Authorize The Director Of Airports To Execute
              The Design Build Agreements To Construct The Landside Terminal Project With
              Austin Walsh Joint Venture And The Airside Concourse Project With Turner/FCI
              Joint Venture For The Terminal Modernization Program At Sacramento
              International Airport

Supervisorial
District:     All

Contact:      G. Hardy Acree, Director of Airports, 874-0600

Overview
On November 27, 2007, the Board of Supervisors (Board) authorized the Director of Airports to
release the Design-Build Contractor (DBC) Request for Proposals (RFP), negotiate an agreement(s)
with the selected DBC entity(ies) to construct the Landside Terminal and the Airside Concourse
Projects and return to the Board to approve the agreement(s) for the Terminal Modernization
Program (TMP) at Sacramento International Airport (International Airport). The recommendations
are contingent on execution of both agreements due to the dependency one has to the other. Not
executing the agreements simultaneously will negatively impact the Guaranteed Maximum Price
(GMP) and schedule.

Along with the authorization of this agreement, the Sacramento County Airport System (County
Airport System) is proposing introduction of an ordinance amending Section 2.61.057 of the
Sacramento County Code allowing the Director of Airports to execute change orders for
improvements to capital facilities of the County Airport System when authorized by the terms of a
contract which specifically provides for such payment.

Recommendations
1) Introduce and waive full reading of the ordinance amending Chapter 2.61.057 of the Sacramento
   County Code relating to contracting authority; and

2) continue the matter to the next Board meeting for adoption of the ordinance.

3) Approve the Resolution authorizing the Director of Airports to execute the agreement for a Design
   Build Contractor to construct the Landside Terminal Project for the TMP at Sacramento
   International Airport with Austin Walsh Joint Venture.
Introduce And Waive Full Reading Of The Ordinance Amending Chapter 2.61 (Section
2.61.057), Title 2, Of The Sacramento County Code Relating To Contracting Authority
(Introduce Ordinance, Waive Full Reading And Continue To June 3, 2008 For Adoption);
Authorize The Director Of Airports To Execute The Design Build Agreements To Construct The
Landside Terminal Project With Austin Walsh Joint Venture And The Airside Concourse Project
With Turner/FCI Joint Venture For The Terminal Modernization Program At Sacramento
International Airport
Page 2


4) Approve the Resolution authorizing the Director of Airports to execute the agreement for a
   Design-Build Contractor to construct the Airside Concourse Project for the TMP at Sacramento
   International Airport with Turner/FCI Joint Venture.

Measures/Evaluation
The DBC project delivery method allows the County of Sacramento (County) to pre-qualify the DBC
entities that want to compete for the project and to select the DBC based on a calculation of “best
value” as determined by an evaluation against weighted selection criteria. The selection criteria
included team structure, construction expertise, technical competency, acceptable safety record,
skilled labor force availability, life-cycle cost and price proposal. The approach also reduces the
overall project duration by one year compared to that resulting from a traditional design-bid-build
approach. Opening the new facility sooner will save money and enhance customer service at
International Airport.

Fiscal Impact
The combined Guaranteed Maximum Price (GMP) for both agreements is $688,356,360. The scope
of work covered by these agreements was budgeted in the amount of $695,718,003 out of the
approved total TMP budget of $1.27 Billion. Consequently, the requested action is $7,361,643 less
than the approved budget.

BACKGROUND

As defined in the November 27, 2007, Board approved DBC RFP; the DBC was selected
through a best value selection process. The selected firm demonstrated the experience, technical
capabilities and resources necessary to execute a large, complex airport capital program.

The RFP provided the option for each DBC entity to propose on the Landside Terminal Project,
the Airside Concourse Project or both. A Technical Review Committee evaluated the DBC
proposals and ranked them based on pre-determined criteria and weight. The selection criteria
considered to rank and select the DBC were Team Structure (10%), Construction Expertise
(20%), Technical Competency (10%), Acceptable Safety Record (10%), Skilled Labor Force
Availability (10%), Life-cycle Cost (10%), and Price Proposal (30%).

The highest ranked proposer for each package was invited to interview with the DBC Selection
Committee and required to present additional information to support their candidacy. The DBC
Selection Committee then determined the best value entity for the Landside Terminal Project and
the Airside Concourse Project.

As outlined in RFP Section 8, Proposal Evaluation Factors and Selection Process, proposals were
reviewed and scored by an Evaluation Team based on the established criteria. Proposers were
short listed and invited to an interview with the Selection Committee which resulted in the final
ranking of the Best Value proposals for each DBC contracts. County Airport System then
Introduce And Waive Full Reading Of The Ordinance Amending Chapter 2.61 (Section
2.61.057), Title 2, Of The Sacramento County Code Relating To Contracting Authority
(Introduce Ordinance, Waive Full Reading And Continue To June 3, 2008 For Adoption);
Authorize The Director Of Airports To Execute The Design Build Agreements To Construct The
Landside Terminal Project With Austin Walsh Joint Venture And The Airside Concourse Project
With Turner/FCI Joint Venture For The Terminal Modernization Program At Sacramento
International Airport
Page 3


entered into negotiations with the highest ranked proposing entity for the Landside Terminal B
Project and the Airside Concourse Project. The RFP stated that if the County Airport System
was unable to reach an acceptable agreement with the highest ranked proposing entity(ies)
negotiations would be terminated and the County Airport System would then enter into
negotiation with the next highest ranked firm.

The Technical Review Committee consisted of representatives of the TMP Design Team; TMP
Manager; County Airport System; Facility Planning, Architecture and Real Estate; and
Construction Management and Inspection Division.

The Selection Committee consisted of representatives of the County Executive’s Office;
Department of Economic Development; County Airport System; Facility Planning, Architecture
and Real Estate; and County Engineering.

During the selection process, six DBC entities were pre-qualified including: a joint venture of
Austin Commercial and Walsh, a joint venture of McCarthy, Clark and Hunt, a joint venture of
Turner Flatiron Construction in association with Teichert, Hensel Phelps, Kiewit and Walbridge
Aldinger. Additionally, there were more than seventy subcontractors pre-qualified during the
pre-qualification phase of the RFP.

Three DBC entities submitted proposals and Best and Final Offers (BAFOs). The three finalists
include a joint venture of Austin Commercial and Walsh (proposed on the Landside Terminal
Project, Airside Concourse Project and both projects), a joint venture of McCarthy, Clark and
Hunt (proposed on the Landside Terminal Project, Airside Concourse Project and both projects)
and a joint venture of Turner + Flatiron Construction in association with Teichert (proposed only
on the Airside Concourse Project).

Landside Terminal Project
The Selection Committee rated the joint venture of McCarthy, Clark and Hunt as the highest
rated proposing entity and the joint venture of Austin Commercial and Walsh as the second
highest rated proposing entity. Negotiations with the McCarthy, Clark and Hunt took place over
the span of two weeks but were terminated on May 6, 2008, due to the entity’s inability to accept
the County’s contract terms and conditions. Negotiations with the second highest rated
proposing entity, Austin Commercial and Walsh, commenced on May 7, 2008.

Airside Concourse Project
The Selection Committee rated the joint venture of Turner/FCI in association with Teichert as
the highest rated proposing entity; the joint venture of McCarthy, Clark and Hunt was rated
second highest and the joint venture of Austin Commercial and Walsh was rated third highest.
Negotiations with Turner/FCI in association with Teichert commenced on April 22, 2008.
Introduce And Waive Full Reading Of The Ordinance Amending Chapter 2.61 (Section
2.61.057), Title 2, Of The Sacramento County Code Relating To Contracting Authority
(Introduce Ordinance, Waive Full Reading And Continue To June 3, 2008 For Adoption);
Authorize The Director Of Airports To Execute The Design Build Agreements To Construct The
Landside Terminal Project With Austin Walsh Joint Venture And The Airside Concourse Project
With Turner/FCI Joint Venture For The Terminal Modernization Program At Sacramento
International Airport
Page 4


DISCUSSION

The DBC will provide Design, Preconstruction and Construction Phase Services. The DBC will
cooperate with the County Airport System – Special Projects Division; TMP Program Manager;
TMP Design Team; County Facility Planning, Architecture and Real Estate Division; and
Construction Management and Inspection Division, collectively known as the Integrated
Program Management Group (IPMG).

The design phase begins with Notice to Proceed and continues through the completion of the
final design and construction documents.

Design Phase Services: During this phase, the DBC will:
   • perform design review and coordination;
   • ensure that completion of the design, by the Prime TMP Design Team, is consistent with
      the Established Design Performance Criteria and the DBC price proposal;
   • evaluate alternatives and make recommendations on project-specific conditions,
      assignment of sub-contractor responsibilities and areas of conflict, overlap or
      discrepancy;
   • suggest alternative solutions whenever the design, selection of materials, building
      systems or equipment affects construction budget, schedule or risk;
   • identify possible cost savings where feasible;
   • identify design components that are inconsistent with applicable performance criteria and
      identify alternatives to bring such design deviations into conformance with applicable
      performance criteria; and
   • assist in obtaining risk management, code, and regulatory agency reviews and approvals
      for the project.

This responsibility will be carried out through participation in the design work sessions, based on
the DBC’s thorough review and understanding of the drawings, details, specifications and other
construction contract documents as they are being prepared by the TMP Design Team.

Preconstruction Phase Services: During this phase, the DBC will:
   • develop a “constructability review” report which will outline items that may challenge
      the way the project is to be constructed. The constructability review report will also
      include the DBC’s value engineering suggestions or recommendations. This report will
      provide recommendations on construction site layout, delivery of materials, construction
      feasibility, schedule durations, availability of materials and labor and other matters
      necessary to accomplish the project;
   • develop a baseline critical path schedule which can be incorporated into the IPMG
      Master Program Schedule;
Introduce And Waive Full Reading Of The Ordinance Amending Chapter 2.61 (Section
2.61.057), Title 2, Of The Sacramento County Code Relating To Contracting Authority
(Introduce Ordinance, Waive Full Reading And Continue To June 3, 2008 For Adoption);
Authorize The Director Of Airports To Execute The Design Build Agreements To Construct The
Landside Terminal Project With Austin Walsh Joint Venture And The Airside Concourse Project
With Turner/FCI Joint Venture For The Terminal Modernization Program At Sacramento
International Airport
Page 5


   •   prepare independent cost estimates during completion of the final design and
       develop/implement reasonable strategies to reduce costs; and
   •   develop a “Construction Implementation Plan” that details the DBC’s approach to
       complete the project. This plan will address packaging, scope of services descriptions,
       long lead items, testing requirements, safety planning and temporary facilities.

Construction Phase Services: During this phase the DBC will:
  • supervise and direct the work; and
  • be solely responsible for construction means and methods, cost and schedule.

Contracting Authority
Timely approval of change orders on a project of this complexity and magnitude is essential.
Changes associated with all phases of the work including changed site conditions, unforeseen
conflicts, airport operations, scheduling and sequencing of work with all TMP contractors and
general modifications must be identified, considered and approved efficiently. This
recommended change order authority will provide the Director of Airports and the IPMG an
important tool to assure a successful project.

The County Airport System recommends the approval of an ordinance amending Section
2.61.057 of the Sacramento County Code allowing the Director of Airports to execute change
orders for improvements to capital facilities of the County Airport System when authorized by
the terms of a contract which specifically provides for such payment. The agreements for the
Landside Terminal Project and the Airside Concourse Project have specific language related to
the execution of change orders. The agreements include the following language, “The Director of
Airports, or his or her designee, is authorized on behalf of, and in the name of the COUNTY, to
execute and authorize payment for changes, alterations or additions to work performed on the
Project, in an amount not to exceed 1% of the GMP originally established in Exhibit A per
change order. The total sum of change orders approved by the Director of Airports shall not
exceed 10% of the GMP originally established in Exhibit A. All change orders in excess of 1%
of the GMP originally established in Exhibit A must be approved by the Board of Supervisors.
No changes, alterations or additions to the work shall be approved by the Director or his or her
designee unless they have been reviewed and approved as to conformance with technical
standards by the Director of County Engineering or his or her designee.” This change order
authority is recommended to assure that the TMP is completed in accordance with the IPMG
Master Schedule and the approved TMP total budget.

MEASURES/EVALUATION

The DBC project delivery method allows the County to pre-qualify the DBC entities that want to
compete for the work and to select the DBC based on a calculation of “best value” as determined
by an evaluation of weighted selection criteria that include team structure, construction expertise,
Introduce And Waive Full Reading Of The Ordinance Amending Chapter 2.61 (Section
2.61.057), Title 2, Of The Sacramento County Code Relating To Contracting Authority
(Introduce Ordinance, Waive Full Reading And Continue To June 3, 2008 For Adoption);
Authorize The Director Of Airports To Execute The Design Build Agreements To Construct The
Landside Terminal Project With Austin Walsh Joint Venture And The Airside Concourse Project
With Turner/FCI Joint Venture For The Terminal Modernization Program At Sacramento
International Airport
Page 6


technical competency, acceptable safety record, skilled labor force availability, life-cycle cost
and price proposal. The approach also reduces the overall project duration by one year compared
to that resulting from a traditional design-bid-build approach. This will save money and enhance
customer service by opening the new facility sooner.

FINANCIAL ANALYSIS

The combined Guaranteed Maximum Price (GMP) for both agreements is $688,356,360. The
scope of work covered by these agreements was budgeted in the amount of $695,718,003 out of
the approved total TMP budget of $1.27 Billion. Consequently, the requested action is
$7,361,643 less than the approved budget.

LEGAL ISSUES

County Counsel has reviewed, as to form, this agreement with Austin Walsh Joint Venture to
construct the Landside Terminal Project and Turner/FCI in association with Teichert to construct
the Airside Concourse Project for the Terminal Modernization Program at Sacramento
International Airport.


Respectfully submitted,                             APPROVED:
                                                    TERRY SCHUTTEN
                                                    County Executive
__________________________
G. HARDY ACREE, Director
Sacramento County Airport System                    By: __________________
                                                    NAVDEEP S. GILL
Concur:                                             Chief Operations Officer


_______________________________
STEVE PEDRETTI, Interim Director
Department of County Engineering

Attachments:    Ordinance 2.61.057
                Resolution (2)
                Agreement and Exhibits - DBC Landside Terminal
                   ATT – Landside Project Manual
                Agreement and Exhibits - DBC Airside Concourse
                   ATT – Airside Project Manual
                PPT- Presentation

								
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