TRANSMITTAL LETTER FOR BOARD MEETING OF MARCH 16, 2023
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Authorization to increase cost estimate for Contract 20-RFP-28R, Biogas Combined Heat and Power System, EWRP, estimated cost $10,344,000.00, Accounts 101-50000-612490, 201-50000-612450, 201-50000-645650, Requisitions 1549345, 1577630, 1577629 (As Revised)(Deferred from the March 2, 2023 Board Meeting)
Body
Dear Sir:
On October 1, 2020, the Board of Commissioners authorized the Director of Procurement and Materials Management to advertise Contract 20-RFP-28 Biogas Combined Heat and Power System, EWRP, at an estimated cost of $2,000,000.00. This initial cost estimate did not include the need for a gas treatment system and a stand alone building for the system.
The contract was advertised on December 2, 2020. Bids were received on February 5, 2021. The sole bid received was deemed non-responsive.
The request for proposal (RFP) documents were revised to include 30 percent design documents to benefit prospective bidders with a more refined scope of work for the project. In preparing the 30 percent design documents, an updated cost estimate was prepared to reflect required design details, such as the need for a new building to accommodate the Combined Heat and Power (CHP) engines and bio-gas pretreatment system, management of conflicts with existing utilities on-site, and the inclusion of a more comprehensive maintenance agreement.
The purpose of this RFP contract is to solicit proposals from qualified engineering and construction (EPC) contractors to provide final design, permitting, fabrication, delivery, installation, and maintenance of a CHP system at the EWRP. The system will beneficially utilize excess biogas, in lieu of gas-flaring, to produce electricity and recover heat from the CHP engines to offset EWRP operating energy costs.
The RFP requests a turnkey design-build approach by the selected contractor. The successful proposer will utilize the 30 percent design documents as part of this RFP to develop a 100 percent final design for the complete CHP and biogas pre-treatment system. The CHP design shall utilize all biogas currently produced on site, with the use of supplemental natural gas as necessary. Additionally, the successful proposer shall identify equipment suppliers; provide detailed final cost estimates, production rates, and performance guarantees; and identify additional financing mechanisms and grant opportunities not already identified by the District. The successful proposer shall procure equipment and provide construction services for substantial completion and performance testing to final completion. Additionally, the RFP includes a five (5) year maintenance agreement on the CHP system.
Based on the 30 percent design, the estimated cost for this RFP contract is $10,344,000.00, which includes $504,000.00 for design, $8,340,000.00 for construction, and $1,500.000.00 for maintenance.
A bid deposit is not required for this RFP. The contract requires that all work be completed in 550 calendar days upon the award of the purchase order, exclusive of the maintenance agreement.
For the design and engineering services portion of this contract, Appendix A and Appendix V will be included in this RFP. The type of work to be performed under this contract is within the professional services category for establishing Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE), and Veteran-owned Business Enterprise (VBE) goals. The design and engineering services affirmative action goals for this contract are: 20 percent MBE, 10 percent WBE, and 3 percent VBE.
For the construction services portion of this contract, the Affirmation Action Ordinance, Revised Appendix D and Appendix V will be included in this RFP. The type of work to be performed under this contract is within the mechanical services category for establishing MBE, WBE, and VBE goals. The construction services affirmative action goals for this contract are 20 percent MBE, 9 percent WBE, and 3 percent VBE.
The Affirmative Action Revised Appendix D, Appendix V and Appendix A will not be included for the maintenance services portion of this RFP due to the specialized maintenance knowledge required for the specified CHP units.
The tentative schedule for this contract is as follows:
Advertise March 29, 2023
Proposal Due Date May 26, 2023
Finalist Interviews June 24, 2023
Contract Award August 10, 2023
Completion December 31, 2024
Maintenance Completion December 31, 2029
Funds are available in 2023 in Accounts 201-50000-612450 and 201-50000-645650, respectively for the design, engineering services and construction portions of the contract.
For the maintenance service, the estimated expenditures in 2025, 2026, 2027, 2028, and 2029 will be $300,000.00 annually. Funds in Account 101-50000-612490 are contingent on the Board of Commissioners’ approval of the District’s budget for those years.
In view of the foregoing, it is recommended that the Director of Procurement and Materials Management be authorized to increase the cost estimate and re-advertise Contract 20-RFP-28R.
Requested, Catherine A. O’Connor, Director of Engineering, KMF:LS
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Marcelino Garcia, 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 March 16, 2023
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