2017-29800 Reso RESOLUTION NO. 2017-29800
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER TO AWARD AN AGREEMENT, PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 2016-091-KB, FOR DESIGN/BUILD
SERVICES FOR WEST AVENUE IMPROVEMENTS PHASE II NORTH OF 14
STREET (PHASE II), TO RIC-MAN CONSTRUCTION FLORIDA, INC., WITH
THE GUARANTEED MAXIMUM PRICE (GMP) IN THE AMOUNT OF
$30,243,063.00; AUTHORIZING A TEN PERCENT (10%) OWNER'S
CONTINGENCY FOR THE PROJECT IN THE AMOUNT OF $3,024,306.30;
AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A DESIGN BUILD AGREEMENT WITH RIC-MAN
CONSTRUCTION FLORIDA, INC.
WHEREAS, at the March 1, 2017 City Commission meeting, the Mayor and City
Commission considered the City Manager's recommendation to award an agreement pursuant
to Request for Proposals (RFP) No. 2016-091-KB (Item R7F) to Ric-Man Construction Florida,
Inc. (Ric-Man); and
WHEREAS, at the March 1, 2017 City Commission meeting, the City Commission
accepted the City Manager's recommendation, and authorized the Administration to enter into
negotiations with the top-ranked proposer, Ric-man Construction Florida, Inc.; further, should
the Administration not be successful in its negotiations with Ric-man Construction Florida, Inc.,
the City Commission authorized the Administration to enter into negotiations with the second
highest ranked proposer, Lanza Construction Co., Florida; and further provided that the final
negotiated Guaranteed Maximum Price ("GMP")with the successful proposer shall be subject to
the prior approval of the Mayor and City Commission; and
WHEREAS, on March 6, 2017, the Administration met with Ric-Man to negotiate the
proposed GMP; and
WHEREAS, Ric-Man agreed to reduce its original GMP of $30,850,663.00, to the
revised GMP of$30,243,063.00, yielding cost savings to the City in the amount of $607,600.00;
and
WHEREAS, the City Manager, after successful negotiations, recommends award of the
contract to Ric-Man, with a-GMP in the amount of$30,243,063.00; and
WHEREAS, the City Manager further recommends the establishment of a separate ten
percent (10%) Owner's Contingency for the Project in the amount of$3,024,306.30.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission of the City of Miami Beach, Florida hereby accept the recommendation of the City
Manager to award an agreement, pursuant to Request for Proposals (RFP) No. 2016-091-KB
for Design/Build Services for West Avenue Improvements Phase II North of 14 Street (Phase II),
to Ric-Man Construction Florida, Inc., with the Guaranteed Maximum Price (GMP) in the amount
of $30,243,063.00; authorize a ten percent (10%) Owner's Contingency in the amount of
$3,024,306.30; and further authorize the Mayor and City Clerk to execute a Design Build
agreement with Ric-Man Construction Florida, Inc.
PASSED AND ADOPTED this baa- day of Mark 21
ATTEST:
f Philip Levine, • rf`
R-fae _'ran- • City erk
T:WGENDA\2017\3-March\Procurement Department\March 22,2017\R 2016-090 and 091-KB West Ave South and North of 14
ST\2016-091 -KB RFP-Design Build Services for West Ave North of 14 Street(Phase II)-Resov3 03 10 17.docx
APPROVED AS TO
FORM&LANGUAGE
&FOR EXECUTION
3( (4J
City AttomeyP Date
Resolutions - R7 A
MIAMI BEAF
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: March 22, 2017
SUBJECT: 1. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER TO AWARD AN AGREEMENT, PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 2016-090-KB, FOR DESIGN/BUILD SERVICES FOR
WEST AVENUE IMPROVEMENTS PHASE II SOUTH OF 14 STREET (PHASE II),
TO RIC-MAN CONSTRUCTION FLORIDA, INC., WITH THE GUARANTEED
MAXIMUM PRICE (GMP) IN THE AMOUNT OF $13,113,590.00; AUTHORIZING A
TEN PERCENT (10%) OWNER'S CONTINGENCY FOR THE PROJECT IN THE
AMOUNT OF $1,311,359.00; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE A DESIGN BUILD AGREEMENT WITH RIC-MAN
CONSTRUCTION FLORIDA, INC.
2. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER TO AWARD AN AGREEMENT, PURSUANT TO REQUEST FOR
PROPOSALS (RFP) NO. 2016-091-KB, FOR DESIGN/BUILD SERVICES FOR
WEST AVENUE IMPROVEMENTS PHASE II NORTH OF 14 STREET (PHASE II),
TO RIC-MAN CONSTRUCTION FLORIDA, INC., WITH THE GUARANTEED
MAXIMUM PRICE (GMP) IN THE AMOUNT OF $30,243,063.00; AUTHORIZING A
TEN PERCENT (10%) OWNER'S CONTINGENCY FOR THE PROJECT IN THE
AMOUNT OF $3,024,306.30; AND FURTHER AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE A DESIGN BUILD AGREEMENT WITH RIC-MAN
CONSTRUCTION FLORIDA, INC.
RECOMMENDATION
Adopt the resolutions.
ANALYSIS
On March 1, 2017, the City Commission was presented with the City Manager's
recommendation to award an agreement pursuant to Request for Proposals (RFP) No. 2016-
090-KB (Item R7E) and RFP No. 2016-091-KB (Item R7F) to Ric-Man Construction Florida,
Inc. (Ric-Man). Commission authorized the Administration to enter into negotiations with the top-
ranked proposer, Ric-man Construction Florida, Inc.; further, should the Administration not be
successful in its negotiations with Ric-man, authorize the Administration to enter into
Page 145 of 168
negotiations with the second highest ranked proposer, Lanzo Construction Co., Florida; and
further providing that the final negotiated Guaranteed Maximum Price with the successful
proposer shall be subject to the prior approval of the Mayor and City Commission.
On March 6, 2017, city staff met with Ric-Man representatives and successfully negotiated the
price for both contracts as follows:
• RFP No. 2019-090-KB—West Avenue Improvements Phase II —South of 14th
Street, Original GMP of $13,285,990.00 reduced to $13,113,590.00, at a savings of
$172,400.00.
• RFP No. 2019-091-KB—West Avenue Improvements Phase II — North of 14th
Street, Original GMP of $30,850,663.00 reduced to $30,243,063.00, at a savings of
$607,600.00.
The total cost savings is $780,000 for both contracts. The ten percent (10%) owner's
contingency for each contract is $1,311,359.00 and $3,024,306.30 respectively.
Even though all proposers were qualified to perform the work, the level of detail submitted by
Ric-Man's proposal, indicated that they had performed extensive research pertaining to the
development of the design, harmonization, utility coordination and sequencing of construction,
which showed a clear understanding of most, if not all of the challenges associated with the
project, translating to a better technical approach of work as described in the City's design
criteria. The significant and extensive research conducted by Ric-Man on both projects is
clearly an advantage to the City, as the more knowledgeable the design/build firm, the lesser the
risk faced by the City in completing the scope of work for the agreed upon price. In addition, the
preparation of preliminary design documents was much more advanced which would allow for a
more timely delivery of the project design. We believe that the 1.5% and 2% price differentials
from the lowest price proposal to the highest ranked proposal are more than offset by the
positive attributes of the highest ranked proposal.
CONCLUSION
1. After successful negotiations, the City Manager recommends that the Mayor and City
Commission approve the resolution authorizing the Administration to execute a Design Build
Agreement Ric-Man Construction, Inc., pursuant to Request for Proposals (RFP)No. 2016-090-
KB for Design/Build Services for West Avenue Improvements Phase II South of 14 Street
(Phase II), to Ric-Man Construction, Inc., with the Guaranteed Maximum Price (GMP) in the
amount of $13,113,590.00; and authorizes a ten percent (10%) Owner's Contingency for the
Project in the amount of$1,311,359.00.
2. After successful negotiations, the City Manager recommends that the Mayor and City
Commission approve the resolution authorizing the Administration to execute a Design Build
Agreement Ric-Man Construction, Inc., pursuant to Request for Proposals (RFP) No. 2016-091-
KB for Design/Build Services for West Avenue Improvements Phase II North of 14 Street
(Phase II), to Ric-Man Construction, Inc., with the Guaranteed Maximum Price (GMP) in the
amount of $30,243,063.00; and authorizes a ten percent (10%) Owner's Contingency in the
amount of$3,024,306.30.
KEY INTENDED OUTCOMES SUPPORTED
Page 146 of 168
Build And Maintain Priority Infrastructure With Full Accountability
FINANCIAL INFORMATION
The cost of the related services, are subject to funds availability approved through the City's
budgeting process. Grant funds will not be utilized for this project.
Amount 1 $500 $8,361 Account 1 301-0810-000356-00-410-522-00-0-00-
$67,781 26150 301-0810-061357-00-410-522-00-00-
00-26150 305-0810-061357-00-410-522-00-
00-00-26150
Amount 2 $52,000 Account 2 388-0810-000356-00-410-522-00-00-00-
$43,065 26150 388-0810-061357-00-410-522-00-00-
00-26150
Amount 3 $28,800 Account 3 388-0810-069351-00-410-522-00-00-00-
$377,228 26150 388-0810-069357-00-410-522-00-00-
00-26150
Amount 4 $530,000 Account 4 187-9615-000349-30-410-524-00-00-00-
$36,667,342 60197 Future Stormwater Bond Proceeds
Amount 5 $18,333,671 Account 5 Future Water and Sewer Bond Proceeds
$6,111,223 Streetscape- Funding to be Determined
Total 62,219,971
Legislative Tracking
Public Works/Procurement
ATTACHMENTS:
Description
o Resolution 1
ID Resolution 2
o REP 2016-090-KB Phase I Eval Scoring and Ranking
o RFP 2016-090-KB Phase II Eval Scoring and Ranking
o RFP 2016-091-KB Phase I Eval Scoring and Ranking
o RFP 2016-091-KB Phase II Eval Scoring and Ranking
Page 147 of 168
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