FROM: Jim Hossley, Public Works and Development...
Transcript of FROM: Jim Hossley, Public Works and Development...
CITY OF COOS BAY CITY COUNCILAgenda Staff Report
MEETING DATE
June 4, 2013AGENDA ITEM NUMBER
TO: Mayor Shoji and City Council
FROM: Jim Hossley, Public Works and Development DirectorQj-Through: Rodger Craddock, City Manager f
ISSUE: Presentation on an Exemption from the Invitation to Bid Requirements and Useof the Contract Manager/General Contractor (CM/GC) Method of Procurementfor constructing the Wastewater Treatment Plant #2 Project
BACKGROUND:
Since the early 1980's, the Construction Manager/General Contractor (CM/GC) project deliverymethod has been utilized to successfully deliver construction projects in the State of Oregon.Public agencies that have traditionally employed the design-bid-build method, (DBB) of projectdelivery increasingly select CM/GC. CM/GC offers opportunities for success that are notnecessarily available through traditional contracting methods, (DBB). Because of thecomplexity, limited funds, public impact and a strict timeline to complete the proposedWastewater Treatment Plant 2 project, city staff recommends using a ConstructionManager/General Contractor (CM/GC) approach to the project. Staff will give a shortPowerPoint presentation on the method.
ADVANTAGES:
Utilization of the CM/GC contract delivery process will allow the City to deliver the mostcomprehensive project for the allotted funding. Another public benefit is more expeditiouscompletion of the project. The CM/GC process provides for better collaboration to ensure theProject will be completed on time, on budget and at or above the quality described in theconstruction documents. It provides better opportunities for reducing construction time by fasttracking construction where beneficial.
DISADVANTAGES:
None
BUDGET:
Staff is currently working with the design team of SHN and CH2M HILL. It is anticipated thatpre-design efforts will be complete in August 2013. Upon completion of pre-design efforts Staffis planning to conduct a Value Engineering review. At that time, if the project is going to uses aCM/GC delivery method, staff will select a CM/GC contractor based on qualifications through aproposal process similar to how engineering services are procured. The CM/GC contractor willwork collaboratively with the engineer and the City under a professional services contract duringthe Value Engineering phase and the beginning of the final design period. Once the final designprogresses far enough to negotiate a cost of construction, the CMGC contract converts to aconstruction contract (which can be reimbursable instead of Lump Sum). Staff is currentlyworking with Oregon Infrastructure Finance Authority to fund the professional services contract
Agenda Item #8
for the CM/GC contractor. Ultimately staff is working on an application for a loan administeredby DEQ's State Revolving Fund to fund the construction of the plant including the CM/GCservices.
RECOMMENDATION:
No action is required at this time. Should Council agree to move forward with the CM/GCcontracting method, staff has scheduled a public hearing on the proposed use of the CM/GCproject delivery method for the July 2, 2013 Council meeting.
ATTACHMENTS:
Presentation Slides
Agenda Item #8
Presen
tati
on
of
Alt
ern
ati
ve
Co
ntr
act
ing
Met
ho
dC
on
stru
ctio
nM
an
ag
er/
Gen
era
lC
on
tra
cto
r(C
M/G
C)
-Vs-
Tra
dit
ion
al
Des
ign
-Bid
-Bu
ild
(DB
B)
Pre
sen
tati
on
By
Pu
bli
cW
ork
sa
nd
Dev
elo
pm
ent
Dep
art
men
tJu
ne
4,2
01
3
Agenda Item #8
Bac
kg
rou
nd
Sin
ceth
eea
rly
19
80
'S-
The
Con
stru
ctio
nM
anag
er/G
ener
alC
ontr
acto
r(C
M/G
C)
proj
ect
deli
very
met
hod
(Alt
erna
tive
Met
hod)
has
bee
nut
iliz
edto
succ
essf
ull
yde
live
rco
nstr
ucti
onpr
ojec
tsin
the
Sta
teo
fO
reg
on
.
Ov
erv
iew
-H
ow
do
es
ind
ust
ryre
sear
chco
mp
are
CM
/GC
toD
esig
n-B
id-B
uild
(DB
B)?
-W
ho
isu
sin
gC
M/G
C?
-A
rep
erfo
rman
cein
dic
ato
rsan
db
ench
mar
ks
avai
lab
leto
com
par
eD
BB
and
CM
/GC
?
-W
hat
isO
reg
on
'sex
per
ien
cew
ith
CM
/GC
? 1
Agenda Item #8
COCD
O
CO00
9 m
cl -o
O "O
Q. a)E «
O Q
(N
Agenda Item #8
Co
mp
aris
on
of
Pro
ject
Str
uct
ure
sC
on
stru
ctio
nM
anag
er/G
ener
alH
nntr
antn
r(H
M/R
C)
OW
NE
R
CM
/GC
Su
b-C
on
tracto
rs
Agenda Item #8
Wh
at
isC
M/G
C?
>E
arly
inth
ed
esig
np
has
eo
wn
erco
mpe
titi
vely
sele
cts
thro
ug
han
RF
Pa
con
trac
tor
topr
ovid
eco
nstr
ucti
onm
anag
emen
tan
dg
ener
alco
ntra
ctin
gserv
ices.
>C
M/G
Cau
gm
ents
the
trad
itio
nal
du
ties
of
the
gen
eral
con
trac
tor
with
aco
nstr
ucti
onm
anag
eru
nd
era
sin
gle
con
trac
tw
ithth
eow
ner.
>D
urin
gd
esig
nth
eC
M/G
Cfi
rmco
llab
ora
tes
with
the
arch
itec
t/en
gin
eer
onth
ed
evel
op
men
tof
the
des
ign
and
pre
par
atio
nof
the
des
ign
do
cum
ents
.
4
Agenda Item #8
Wh
at
isC
M/G
C?
>W
hen
des
ign
reac
hes
acce
pta
ble
leve
l,th
eC
M/G
Cfi
rmsu
bm
its
ag
uar
ante
edm
axim
umpr
ice
(GM
P)
for
the
proj
ect
toth
eow
ner.
>A
fter
agre
emen
to
na
GM
Pis
reac
hed
,th
eC
M/G
Cfi
rmu
nd
ert
ak
es
the
co
nst
ructi
on
of
the
faci
lity.
>T
he
CM
/GC
firm
pro
cure
ssu
bco
ntr
acts
wit
htr
ade
con
trac
tors
usin
gm
ulti
ple
bid
pac
kag
esto
con
stru
ctth
epr
ojec
t,an
dm
anag
esth
eco
nst
ruct
ion
pro
cess
on
beh
alf
of
the
ow
ner
. 5
Agenda Item #8
Ho
wD
oes
Ind
ust
ryR
ese
arc
hC
om
pa
reD
esig
n-B
id-B
uil
dto
CM
/GC
?
Tra
dit
ion
al
Des
ign
-Bid
-Bu
ild
Alt
ern
ati
ve
CM
/GC
Sch
ed
ule
Best
suit
edif
reaso
nab
le,
no
ta
cri
tical
facto
r
Bes
tsui
ted
ifag
gre
ssiv
e,fa
st-
trac
kin
gp
oss
ible
Co
mp
en
sati
on
Fix
edpr
ice,
low
bid
con
trac
tin
gN
egot
iate
dm
axim
umg
uara
nte
ed
pri
ce
Tea
m
Rela
tio
nsh
ipA
dv
ers
ari
al
Co
llab
ora
tiv
e
^^
Pro
ject
^\^C
ompl
exit
y^L
ow
-mo
dera
teH
igh
Exp
eri
en
ce
Req
uir
edM
od
era
teH
igh
deg
ree
of
exp
erie
nce
requ
ired
of
all
part
icip
ants
Ris
kP
rim
aril
yo
wn
erC
M/G
C
Pro
ject
Cos
tJA
ver
age
des
ign
and
man
agem
ent
cost
s,al
way
sH
IGH
pote
ntia
lfo
rch
ang
eo
rder
s
Sli
ght
high
erd
esig
nco
sts,
sign
ific
antr
educ
tion
inch
ang
eo
rders
Pro
ject
Qu
ali
tyS
tan
dar
dqu
alit
yex
pec
ted
Hig
hqu
alit
yex
pec
ted
6
Agenda Item #8
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o
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on
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Agenda Item #8
Are
per
form
ance
ind
icat
ors
and
ben
chm
ark
sav
aila
ble
toco
mp
are?
>T
he
stat
ed
oes
no
tcu
rren
tly
coll
ect
co
nsis
ten
tre
liab
lesta
tean
dlo
cal-
lev
el
dat
ato
anal
yze
pro
ject
per
form
ance
Co
st-p
er-s
qu
are-
foo
t
Co
st
Gro
wth
Tim
eG
row
th
Qua
lity
Ch
ang
eO
rder
s
Co
nta
cted
Sta
teC
on
trac
tor
Boa
rd(P
osit
ive
revi
ewof
the
use
CM
/GC
)
Sta
teo
fO
reg
on
has
bee
nut
ilizi
ngal
tern
ativ
eco
ntr
acti
ng
met
ho
dsi
nce
19
80
8
Agenda Item #8
Wh
atis
Ore
go
n's
Ex
per
ien
cew
ith
CM
/GC
?
CM
/GC
Ch
ara
cte
ris
tics
Ore
go
n
Ag
gre
ssiv
eS
ch
ed
ule
Presen
t
Neg
oti
ated
Gu
aran
teed
Max
imu
mP
ric
eP
resen
t
Co
llab
ora
tiv
eT
eam
Rela
tio
nsh
ipP
resen
t
Hig
hP
roje
ctC
om
ple
xit
yP
resen
t
Hig
hD
egre
eo
fE
xp
erie
nce
Req
uir
edP
resen
t
Ris
kC
M/G
C
Hig
her
Init
ial
Pro
ject
Co
sts
Inco
nclu
siv
e
Incre
ase
dP
roje
ct
Qu
alit
yP
resen
t
9
Agenda Item #8
CM
/GC
Ben
efi
ts
>V
alue
En
gin
eeri
ng
>P
ub
lic
Imp
act
>S
pec
iali
zed
Ex
per
tise
Req
uir
ed>
Co
nti
nu
edO
per
atio
ns
Nee
ded
>T
echn
ical
Com
plex
ity
>F
un
din
gS
ou
rce
Dea
dli
nes
10
Agenda Item #8
CM
/GC
Ben
efi
tsto
WW
TP
2
>T
he
CM
GC
co
ntr
acto
rw
ill
hav
ean
oppo
rtun
ity
topr
ovid
ev
alu
een
gin
eeri
ng
>C
MG
Cco
ntr
acto
rw
illbr
ing
spec
iali
zed
exp
erti
sew
ith
resp
ect
tow
ast
ew
ate
rth
atw
ill
assis
tw
ith
:
>K
eep
ing
pla
nt
on
lin
e&
inco
mp
lian
cew
ith
per
mit
duri
ngco
nst
ruct
ion
>E
nsu
rin
gpu
blic
safe
tyan
dh
ealt
h>
Clo
se
co
ord
inati
on
wit
hP
lan
t
op
era
tors
>C
MG
Cw
illas
sist
with
keep
ing
proj
ect
ontr
ack
and
mee
ting
MA
Ode
adli
nesn
Agenda Item #8
CM
/GC
del
iver
ym
eth
od
(Pro
san
dC
on
s)
Ad
va
nta
ges
•All
ow
ssele
cti
on
based
on
qual
ific
atio
ns
•A
llo
ws
incre
ased
co
llab
ora
tio
nb
etw
een
eng
inee
ran
dco
ntr
acto
r
•A
llo
ws
for
ale
ss
adv
ersa
rial
pro
ject
team
rela
tio
nsh
ip
Dis
ad
van
tag
es
•R
edu
ces
pric
eco
mpe
titi
on
•N
opr
ice
kn
ow
led
ge
prio
rto
hiri
ngco
ntr
acto
r
•R
equ
ires
decl
arat
ion
byg
ov
ern
ing
bo
dy
•E
arly
supp
orti
ngre
aso
ns
may
no
tp
an
ou
t
12
Agenda Item #8
Oth
erP
oss
ible
CM
/GC
Ad
van
tag
es
>C
ost
sav
ing
san
dco
stg
uar
ante
e>
Opp
ortu
nity
tose
lect
aqu
alif
ied
CM
/GC
firm
ver
sus
risk
sas
soci
ated
with
awar
din
gpr
ojec
tto
any
bo
nd
able
low
bid
der
>H
ighe
rco
nfi
den
cein
obta
inin
gqu
alif
ied
con
stru
ctio
nco
ntr
acto
ran
dm
anag
er>
Acc
ura
teco
std
ata
for
pro
ject
dec
isio
ns
>R
educ
tion
ofsc
hed
ule
risk
tvpi
call
yas
soci
ated
wit
hco
mp
lex
con
stru
ctio
np
roje
cts
>G
reat
est
assu
ran
ceof
proj
ect
com
plet
ion
byest
ab
lish
ed
fun
din
gd
ead
lin
es
13
Agenda Item #8
Oth
er
Po
ssib
leC
M/G
C
Dis
adv
anta
ges
or
Con
flic
tP
oin
ts(t
hprf
taQ
npW
prhi
mh«
ggd
nnqi
iali
fira
tinn
Q)
>V
aria
nce
bet
wee
nE
ng
inee
r's
esti
mat
ean
dC
M/G
C's
esti
mate
•G
oo
dpr
obab
ilit
yo
fth
ish
app
enin
gan
dco
uld
be
sign
ific
ant
mag
nit
ud
eo
fv
aria
nce
•C
anb
ea
sho
wst
op
per
>L
ack
ofte
amw
ork
bet
wee
nen
gin
eer
and
CM
/GC
•C
on
trac
tors
are
not
use
dto
coll
abor
atin
gw
ithen
gin
eers
.•
Co
ntr
acto
rsar
en
ot
use
dto
dev
elo
pin
ges
tim
ates
for
inco
mp
lete
des
ign
s
14
Agenda Item #8
Oth
er
Po
ssib
leC
M/G
C
Dis
adv
anta
ges
or
Con
flic
tP
oin
ts(t
he
reaso
nw
eh
ire
based
on
qu
ali
ficati
on
s')
>N
egot
iati
onof
pre-
cons
truc
tion
ph
ase
serv
ices
co
ntr
act
•C
on
trac
tors
are
no
tg
ener
ally
exp
erie
nce
din
prof
essi
onal
serv
ices
con
trac
ts,
nego
tiat
ion
ofte
rms
and
con
dit
ion
so
fth
ep
rofe
ssio
nal
serv
ices
con
trac
twi
be
dif
fere
nt
than
wit
hco
nsu
ltan
ts.
>N
egot
iati
onof
cons
truc
tion
ph
ase
serv
ices
co
ntr
act
•G
ener
ally
pric
eis
the
gre
ates
thu
rdle
,bu
tte
rms
and
cond
itio
nso
fth
eco
nstr
ucti
onco
ntr
act
(usu
ally
bein
ga
reim
bu
rsab
lep
aym
entf
orm
of
con
trac
t)w
illb
edi
ffer
ent
than
typi
cal
D-B
-Bco
ntr
acts
.
15
Agenda Item #8
Leg
al
Req
uir
em
en
ts
Cit
yo
fC
oo
sB
ay
Reso
luti
on
08
-02
,S
ecti
on
10
Secti
on
10
.R
eq
uest
for
Pro
po
sal.
a)T
he
Bo
ard
may
exem
pt
any
publ
icco
ntr
act
or
clas
so
fco
ntr
acts
from
com
peti
tive
bidd
ing
requ
irem
ents
.S
olic
itat
ion
for
any
publ
icco
ntr
act
or
clas
sof
con
trac
tsth
roug
hth
eR
FP
pro
cess
sha
llb
eu
nd
erta
ken
on
lya
fter
fin
din
gs
ha
ve
been
ma
de:
(1)
Th
ela
ckof
bids
are
unlik
ely
tore
sult
infa
vori
tism
orto
dim
inis
hsu
bst
anti
ally
com
peti
tion
for
the
con
trac
t;an
d
(2)
Th
eex
empt
ion
will
resu
ltin
subs
tant
ial
cost
savi
ngs.
Inm
akin
gsu
chfi
ndin
gsth
eB
oard
may
con
sid
erth
ety
pe,
cost
,am
ou
nt
ofth
eco
ntra
ct,
nu
mb
erof
per
son
sav
aila
ble
tobi
d,an
dsu
cho
ther
fact
ors
as
the
boar
dm
ayd
eem
appr
opri
ate;
an
d
16
Agenda Item #8
Leg
al
Req
uir
em
en
ts
Cit
yo
fC
oo
sB
ayR
esol
utio
n0
8-0
2,
Sec
tio
n1
0-
Co
nti
nu
ed
Secti
on
10
.R
eq
uest
for
Pro
po
sal.
(b)
Pub
lic
Hea
ring
.P
rior
tom
akin
gth
efi
ndin
gssu
ppor
ting
the
exem
pti
on
of
ap
arti
cula
rpu
blic
con
trac
to
rcl
ass
of
co
ntr
acts
,th
eB
oar
dsh
all
ho
lda
pu
bli
ch
eari
ng
,w
here
inte
rest
edp
arti
essh
all
be
affo
rded
anop
port
unit
yto
app
ear
and
pre
sen
tte
stim
ony.
No
tice
of
the
hea
rin
gsh
all
be
pu
bli
sh
ed
no
tle
ss
tha
n1
4d
ays
pri
or
toth
eh
ea
rin
gin
on
etr
ad
en
ew
sp
ap
er
of
gen
era
lcir
cu
lati
on
inth
esta
te.
Th
en
oti
ce
shall
state
that
the
pu
rp
ose
of
the
pu
bli
c
hea
rin
gis
tota
ke
co
mm
en
tso
nth
eB
oa
rd
'sd
ra
ft
fin
din
gs
for
exem
pti
on
,an
dth
atco
pies
ofth
edr
aftf
indi
ngs
are
avai
lab
le,
up
on
req
ues
t,fr
omth
eD
irec
tor.
17
Agenda Item #8
Pro
cess
>T
he
CM
/GC
cont
ract
orw
illb
ese
lect
edth
roug
han
op
enan
dco
mpe
titi
vep
roce
ssas
pres
crib
edby
City
ofC
oo
sB
ayR
eso
luti
on
08
-02
.T
he
CM
/GC
isse
lect
ed,
amo
ng
sto
ther
crit
erio
n,b
ased
onth
equ
alit
yof
thei
rp
rop
osa
lan
dq
ual
ific
atio
ns
>A
nex
emp
tio
nfr
omco
mpe
titi
vebi
ddin
gw
illal
low
the
Cit
yto
tak
ead
van
tag
eso
fsp
ecia
lize
dg
ener
alco
ntr
acto
rsk
no
wle
dg
eab
lein
the
reha
bili
tati
ono
fex
isti
ngst
ruct
ure
san
dva
lue
engi
neer
ing
the
proj
ect
duri
ngth
ed
esig
np
has
e.T
his
will
allo
wth
eC
ityto
be
prov
ided
with
the
bes
tva
lue
and
pote
ntia
lly
elim
inat
eco
stly
chan
ge
ord
ers
resu
ltin
gfr
omu
nk
no
wn
sin
the
field
.
>T
he
su
bco
ntr
acto
rsfo
reach
trad
ew
ill
be
sele
cte
d
bas
edon
aco
mpl
etiv
elo
wbi
db
ase
son
lyth
roug
hC
M/G
C.
18
Agenda Item #8
Wh
at'
sN
ext?
Sh
ou
ldth
eC
ity
Cou
ncil
Co
ncu
rw
ith
the
CM
/GC
cont
ract
ing
met
hod,
staf
fw
ill:
>P
rep
are
dra
ftfi
ndin
gs
>S
ched
ule
apu
blic
hear
ing
for
July
2nd
>P
rep
are
and
adv
erti
sea
publ
ich
eari
ng
pu
rsu
ant
toC
ityo
fC
oo
sB
ayR
esol
utio
n0
8-0
2
19
Agenda Item #8
C/)
CD
o
o
CO
Agenda Item #8