TRANSMITTAL LETTER FOR BOARD MEETING OF AUGUST 12, 2010
COMMITTEE ON PROCUREMENT
Mr. Richard Lanyon, Executive Director
Title
Issue a purchase order and enter into an agreement with MWH Americas, Inc., for professional engineering post award services for Contract 04-202-4F, Connecting Tunnels and Gates, Thornton Composite Reservoir, Calumet Service Area, in an amount not to exceed $9,290,289.65, Account 401-50000-601440, Requisition 1309932
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with MWH Americas, Inc. (MWH) for professional engineering post award services for Contract 04-202-4F, Connecting Tunnels and Gates, Thornton Composite Reservoir, Calumet Service Area.
The District’s agreement with MWH will consist of providing post award engineering services for Contract 04-202-4F, including submittal review, field visits, design support, responding to requests for information, review of change orders, coordination and support services, and resident engineering assistance and inspection. Authority to award the construction contract was granted on May 6, 2010.
MWH has been selected by the Engineering Department to provide the needed professional engineering post award services because of its intimate knowledge of the specialized work to be performed under Contract 04-202-4F.
The total fee for the agreement is $9,290,289.65.
The post award services under this agreement are scheduled to last approximately 55 months and are expected to be completed in December 2014.
The deliverables to be provided under this agreement include:
• Providing engineering services during construction
• Resident engineering assistance and inspection
• Construction contract administration assistance
• Submittal review memos
• Request for information responses
• Request for proposals, calculations, drawings, etc.
Design engineering services for Contract 04-202-4F were provided by MWH. It is prudent to continue to work with MWH for this contract, rather than initiate a new consultant selection process. Retaining MWH for the post award phase of the contract maintains continuity of responsibility if problems occur during or after construction.
Five key personnel and 36,716 hours of consultant time are estimated for this work. The estimated average consultant payroll rate for the term of the agreement is $58.32/hour.
MWH shall be paid an hourly rate based on the direct labor rate in effect for the year the work is performed, times an overall multiplier of 3.05 for office work, 2.85 for field work, plus reimbursable direct costs, up to a total amount not to exceed $9,290,289.65. The components of the total fee for the agreement with MWH are as follows:
Item: Fee:
1. Labor Cost - Engineering Services
A. Direct Labor 1,552,677.00
B. Overhead and Profit 3,182,987.85
C. Total Engineering Services Labor Fee $4,735,664.85
2. Labor Cost - Resident Engineering Services
A. Direct Labor 588,708.00
B. Overhead and Profit 1,089,109.80
C. Total Resident Engineering Services Labor Fee $1,677,817.80
3. Reimbursable Direct Costs
A. MWH Engineering Services Direct Costs 45,958.00
B. MWH Resident Engineering Services Direct Costs 46,980.00
C. Subconsultants
I. Rubinos & Mesia Engineers, Inc. (MBE/SBE) 1,312,109.00
II. Kaltsouni Mehdi, Inc. (WBE) 864,359.00
III. Environmental Design International, Inc. (MBE) 540,658.00
IV.Intelligent Design & Construction Solutions, LLC
(WBE)/Spectrum Engineering, Inc. (WBE/SBE) 66,743.00
D.Total Reimbursable Fee $2,876,807.00
Total Fee $9,290,289.65
The work to be completed by the Protected Class Enterprises (PCEs) represent approximately 30% of the total dollar value of this agreement. Assuming the maximum cost of the agreement is reached, the PCE firms listed will receive approximately $2,783,869.00 in total compensation.
The Affirmative Action Section has reviewed the agreement and has concluded that MWH is in accordance with the District’s Affirmative Action Policy.
Inasmuch as the firm of MWH possesses a high degree of professional skill, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement without advertising, per Section 11.4 of the Purchasing Act, in an amount not to exceed $9,290,289.65.
Funds are contingent upon a Board transfer being requested and approved at this meeting.
Requested, Kenneth A. Kits, Director of Engineering, WSS:KMF
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for August 12, 2010