C2A-Issue RFQ Construction Services For South Pointe Park Pier ProjectCOMMISSION ITEM SUMMARY
Condensed Title:
Request For Approval To Issue A Request For Qualifications (RFQ) For A Construction Manager At Risk
Firm (CM) To Provide Pre-Construction Services And Construction Phase Services Via A Guaranteed
Maximum Price (GMP) Amendment For The South Pointe Park Pier Project.
Ke_y Intended Outcome Supported:
Ensure value and timely delivery of quality capital prolects
Supporting Data {Surveys, Environmental Scan, etc.): The 2009 Customer Satisfaction Survey
indicated that 82% of businesses rated recently completed capital improvement projects as "excellent" or
"good."
Issue:
I Shall the Mayor and City Commission approve the issuance of the RFQ?
Item Summary/Recommendation:
The scope of work for this project consists of the demolition of the existing Pier and construction of a new
Pier. The Pier project will include the construction of the pier structure, platform, turtle friendly lighting, fish
cleaning stations, seating and shade structures and the lighting, landscape and irrigation work for the
entrance plaza.
The Construction Manager at Risk (CM) firm Scope of Services shall include, without limitation, all of the
preconstruction services set forth in this memo and, upon approval by the City of the Guaranteed
Maximum Price (GMP) and as contemplated in any GMP Amendment(s), all of the construction services
required to complete the work in strict accordance with the contract documents (COs}, and to deliver the
Project to the City at or below the GMP and within the contract time.
The Project Team, consisting of the Owner (City), Design Professional and CM, will work together to
produce a quality project with a design that is also buildable in an environment based on a collaborative
effort between the three parties in order to work out all the potential conflicts in the project prior to
construction. This is imperative for compliance with FIND grant initiatives.
To this end the CM firm is contracted to perform pre-construction services and provide at the City's
request or option, a Guaranteed Maximum Price (GMP) and certifies by signing the GMP contract with the
City that the CM firm can build the project for the GMP and scheduled completion date.
APPROVE THE ISSUANCE OF THE RFQ.
Advisory Board Recommendation:
I N/A
Financial Information:
Source of Amount
Funds: 1 N/A
OBPI Total
~
Financial Impact Summary: N/A
City Clerk's Office Legislative Tracking:
C9 MIAMI BEACH
27
Account
AGENDA ITEM C ~ A
DATE /J.-/If-//
m MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
TO:
FROM:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Matti Herrera Bower and Members?{of the City Commission
Jorge M. Gonzalez, City Manager
December 14, 2011
REQUEST FOR APPROVAL TO ISS E A REQUEST FOR QUALIFICATIONS {RFQ)
FOR A CONSTRUCTION MANAGER AT RISK FIRM {CM) TO PROVIDE PRE-
CONSTRUCTION SERVICES AND CONSTRUCTION PHASE SERVICES VIA A
GUARANTEED MAXIMUM PRICE {GMP) AMENDMENT FOR THE SOUTH POINTE
PARK PIER PROJECT.
ADMINISTRATION RECOMMENDATION
Approve issuance of the RFQ.
KEY INTENDED OUTCOME SUPPORTED
Ensure value and timely delivery of quality capital projects
ANALYSIS
The scope of work for this project consists of the demolition of the existing Pier and construction
of a new Pier. The Pier project will include the construction of the pier structure, platform, turtle
friendly lighting, fish cleaning stations, seating and shade structures and the lighting, landscape
and irrigation work for the entrance plaza.
CIP staff has studied the use of Construction Management at Risk project delivery method for
this project in lieu of a standard Design-Bid-Build process, and recommends the Construction
Manager at Risk (CM) firm option as the most advantageous project delivery method to
successfully complete the construction of the new pier facility. One of the most important
distinctions between the Construction Management at Risk project approach and the Design-
Bid-Build is that the CM is selected based on the CM's qualifications. The CM's approach will
give the City the added value of having a qualified contractor evaluate the project documents for
any inconsistencies, errors and omissions between the various design disciplines and provide
constructability review of the project.
The delivery method will allow the opportunity for the Design Professional and CM to work
together in identifying the most practical, economical way to demolish and construct the Pier
while complying with numerous jurisdictional agency requirements for the project. Since this is a
complex permitting process and the CM will be working in environmentally sensitive areas while
constructing the Pier, the Design Professional has identified various deductive-alternates to
assist the City in the approval of the GMP for adherence to the project budget.
This project delivery method also minimizes additional costs from the Contractor, including
change orders and time extensions, since the GMP prohibits most project cost adjustments.
Under this approach, time is of the essence to the CM because there will be no compensation
considered for delays. Furthermore, through the implementation of this type of delivery method,
the City was recently able to capture savings in the amount of $171,555.00 for the Scott Rakow
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Commission Memorandum -Issuance of the Construction Management at Risk RFQ for the South Pointe
Park Pier Project
December 14, 2011
Page 2 ofB
Project. The agreement between the City and CM included a clause that stated "Should the
Construction Manager at Risk firm realize any savings from the negotiated schedule of values,
the City shall receive 75% of said savings with no line item integrity".
The Project Team, consisting of the Owner (City), Design Professional and CM firm work
together to produce a quality project with a design that is also buildable in an environment
based on a collaborative effort between the three parties in order to work out all the potential
conflicts in the project prior to construction. This is imperative for compliance with FIND grant
initiatives.
To this end the CM firm is contracted to perform pre-construction services and provide at the
City's request or option, a Guaranteed Maximum Price (GMP) and certifies by signing the GMP
contract with the City that the CM can build the project for the GMP and scheduled completion
date.
The City will request Pre-Construction Services as follows:
• Constructability and Value Engineering
• Review of Onsite and Offsite Conditions
• Scheduling
• Bidding (GMP submittal package & Negotiations)
The CM is tasked to work with the Design Professional to advise the City of the constructability
of the design and provide value engineering of the Design Professionals documents, to check
the quality of the documents and advise the Owner of the most efficient, and economical ways
to build the project pursuant to the Owners goals and objectives.
The end result is a Guaranteed Maximum Price (GMP) from the CM, which is subject to
restrictions in change order requests and minimizes, or eliminates, additional costs to the City.
In order to ensure that the City is successful in negotiating the best value for this project, the
City will hire an independent Construction Estimator to provide assistance in validating the CM's
construction costs according to the current market.
The "Best Value" Procurement process will be used to select a firm with the necessary
experience and qualifications, as well as demonstrating the ability, capacity and proven past
successful performance in providing Construction Management at Risk services.
The City's latest estimate of probable cost for the project, including the demolition of the existing
pier, is $4,397,800.
SCOPE OF SERVICES
The Construction Manager at Risk firm (CM) scope of services shall include, without limitation,
all of the Preconstruction Services set forth below and, upon approval by the City of the
Guaranteed Maximum Price (GMP) and as contemplated in any GMP Amendment(s), all of the
Construction Services required to complete the Work in strict accordance with the Contract
Documents, and to deliver the Project to the City at or below the GMP and within the Contract
time.
The CM shall review Project requirements including permit agency parameters, existing on-
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Commission Memorandum -Issuance of the Construction Management at Risk RFQ for the South Pointe
Park Pier Project
December 14, 2011
Page 3 ofB
site and off-site development, surveys and preliminary budget, and make recommendations to
the City for revisions. The CM shall submit a package that includes a detailed Project Schedule
in accordance with the Contract Documents and in coordination with the City and the Design
Professional, identifying all phases, critical path activities, and critical duties of each of the
Project team members. The CM shall review the permitted set of plans and advise the City and
the Design Professional regarding the constructability of the design and of any errors,
omissions, or conflicts it discovers. The CM shall prepare an outline of proposed bid packages
and detailed cost estimates, and advise the City regarding trends in the construction and labor
markets that may affect the price or schedule of the Project. The CM shall attend all Project
related meetings. The CM's Preconstruction Services shall be provided, and the City shall
compensate the CM for such services, based upon a fixed fee. At the conclusion of the
Preconstruction Services Phase, the CM shall, provide the City a proposal for a GMP
Amendment for construction phase services and without assuming the duties of the Design
Professional, warrant to the City, that the plans, specifications and other Contract Documents
are consistent, practical, feasible and constructible, and that the Project is constructible within
the contract time.
The successful firm will be tasked with the following duties and responsibilities:
Task 1 -Coordination with the Design Professional: In providing the CM's services
described in this Agreement, the CM shall maintain a working relationship with the Design
Professional. However, nothing in this Agreement shall be construed to mean that the CM
assumes any of the responsibilities or duties of the AlE of Record. The CM shall be solely
responsible for construction means, methods, techniques, sequence, procedures and
monitoring of environmental compliance used in the construction of the Project and for the
safety of its personnel, property, and operations in accordance with the CM's Agreement with
the City. The AlE is responsible for the design requirements of the Project as indicated in the
Agreement between the City and the A/E. The CM's services shall be rendered in conjunction
with and in cooperation with the AlE's services under the City. It is not intended that the
services of the Design Professional and the CM be competitive or duplicative, but rather be
complementary.
Task 2 -Review of Design Documents, Scheduling, Estimating, and Cost Control: The
CM, as a result of the review of the design documents and recommendations provided to the
City, shall be fully responsible for the coordination of the drawings with the written
specifications. This includes but is not limited to, the CM's review of the construction
documents in coordination of the drawings and specifications themselves, with the existing
buildings and sites to ensure proper coordination and constructability, lack of conflict and to
minimize unforeseen conditions. The CM shall, during this phase, be responsible for the proper
identification and location of all utilities, services, and other underground facilities which may
impact the Project. The CM agrees specifically that no Contract Amendments shall be
requested by the CM or considered by the City for reasons involving conflicts in the documents;
questions of clarity with regard to the documents; and incompatibility, or conflicts between the
documents and the existing conditions, utilities, code issues and unforeseen underground
conditions.
Task 3 -Bid and Award Phase: The CM shall prepare a Subcontractor's Prequalification Plan
in compliance with the requirements currently determined by the City. The CM shall submit to
the City the CM's list of pre-approved sub-contractors for each element of the Work to be sub-
contracted by the CM. This list shall be developed by the execution by the CM of the sub-
contractor's Pre-qualification Plan noted above. The City reserves the right to reject any sub-
contractor proposed for any bid to be considered by the CM. Any claims, objections or disputes
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Commission Memorandum -Issuance of the Construction Management at Risk RFQ for the South Pointe
Park Pier Project
December 14, 2011
Page 4 ofB
arising out of the Pre-qualification Plan or list, are the responsibility of the CM. The CM shall
hold harmless, indemnify, and defend the City, its employees, agents, and representatives in
any matter arising out of the pre-qualification plan and/or the sub-contractor's list, except where
the sole cause of the matter is a City directed decision.
Task 4 -Guaranteed Maximum Price (GMP): After taking, reviewing and identifying the
proposals from the responsive and responsible sub-contractors, the CM shall propose to the
City, a GMP, which shall be the sum of the proposed sub-contracts and the CM's General
Conditions (including any fee, profit, overhead and all like amounts) and the agreed upon
Contingency amount. The GMP shall be the full and complete amount for which the CM agrees
to go forward from the receipt of sub-contract bids to the full completion of the Project.
Prior to acceptance and execution of the GMP, the CM shall submit a Best Value quality control
plan that identifies risks and potential risks that the CM does not control, or risk that is impacted
by factors that the CM does not control, and includes the CM's plan to minimize that risk. A risk
would be any existing or potential condition, situation or event that could negatively impact the
project's cost, schedule, quality and the City's expectations.
Upon acceptance and execution of the GMP proposal, by the City, the CM shall enter into sub-
contract agreements with the sub-contractors selected for the amounts included in the GMP
Proposal for that sub-contract work, and shall function as a General Contractor and comply with
the Contract Documents accordingly with regard to the Project as well as a CM with regard to
other services required by the Contract Documents.
Task 5-Construction Phase: Once the City has accepted the GMP, the City will issue a GMP
Amendment which will include the Contract for Construction. CM activities shall include, but are
not limited to:
• Coordinating site construction management services including but not limited to: regular
job site meetings, maintaining daily on-site project log and schedule reports, overseeing
quality assurance, testing and inspection programs, monitoring construction
management staff and sub-contractor work performance for deficiencies, maintaining
record copies of all contract documents, change orders and other documentation on site,
and overseeing construction management staff and subcontractor safety programs.
• Staffing each assigned project in a satisfactory manner. As a minimum, the CM site
personnel during the construction phase will include: a project manager, a full-time
project superintendent and project administrative personnel. The CM shall provide site
personnel that are competent, English-speaking and able to communicate effectively.
• Updating and maintaining master project schedules, detailed construction schedules,
submittal schedules, inspection schedules and occupancy schedules.
• Preparing a schedule of values associated with the identified bid package and submitting
it for approval by the Design Professional and City's representative(s). All payment
requests must be in accordance with the schedule of values approved.
• Processing payment requests for approval by the Design Professional and the City's
representative( s ).
• Processing any change orders due to scope and modifications and submitting them for
approval by the Design Professional and the City's representative(s), including a cost
estimate of the proposed change.
• Processing requests for information and coordination with the Design Professional.
• Providing construction program accounting and reporting to the City as required.
• Monitoring for the presence of existing asbestos containing building materials and certify
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Commission Memorandum -Issuance of the Construction Management at Risk RFQ for the South Pointe
Park Pier Project
December 14, 2011
Page 5 ofB
to the City that no asbestos containing material has been used.
• Providing monthly progress reports to the City.
• Submitting exception-based status reports, associated with the Best Value Quality
Control Plan, addressing conditions, situations, and events that introduce risk to the
project, in terms of cost, schedule, quality, and City's expectations, and including the
CM's plan to mitigate the risk (s).
• Coordinating with the Design Professional and City representative(s) the substantial and
final inspections, prior to the Design Professional's approval and issuance of the
Certificate of Substantial Completion.
Task 6 -Post-Construction Phase: The CM will coordinate project closeout, start-up and
transition to operations, per the contract for Construction. Activities include but are not limited to:
• The CM shall coordinate project close-out, start-up and transition to operations.
• The CM will coordinate with the Design Professional to provide a complete project
record including project manual and CADD drawings to show all construction changes,
additions, and deletions compared to the Construction Document (CADD disks will be
provided to the CM by the Design Professional).
• The CM will coordinate with the City to prepare the Certificate of Final Inspection.
• The CM will obtain and review for completeness, have corrected if necessary, and
submit to the City, following the Design Professional's approval, all Warranties,
Operations and Maintenance Manuals, and other such documents.
• The CM is responsible for Warranties and Guaranties.
• The CM will complete all punch-list items generated by Design Professional during their
inspections.
• The CM will coordinate and conduct the Occupancy Evaluation and Warranty Inspection.
MINIMUM REQUIREMENTS
For purposes of compliance with this minimum experience requirement, the term "Proposer'' is
hereby defined to mean the firm and/or business entity which is submitting a proposal pursuant
to this RFQ. Accordingly, the firm and/or business entity must meet the minimum requirements
listed below in order to be deemed responsive. Non-responsive bids will be disqualified from
consideration.
Interested Firms shall address the following items in the RFQ response:
1. Team's Experience
• Indicate the firm's number of years of experience in providing CMR services
or Design Build services for projects of the same size and complexity as
required by this RFQ.
• The firm must demonstrate an ability to provide multi-disciplinary
management in the areas of facility assessment, scope definition/validation,
planning, public engagement, cost estimating, scheduling, quality control and
assurance plan, building code review/inspection, design, construction,
closeout, and warranty services.
• List all successfully completed projects comparable in design, scope, size
and complexity, undertaken in the past five (5) years. Describe the scope of
each project in physical terms and by cost, describe the respondent's
responsibilities, and provide the name and contact telephone number of an
individual in a position of responsibility who can attest to respondent's
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Commission Memorandum -Issuance of the Construction Management at Risk RFQ for the South Pointe
Park Pier Project
December 14, 2011
Page 6of8
activities in relation to the project. An SF254 can suffice this request.
• List the firm's successfully completed projects comparable in design, scope,
size and complexity, undertaken in the past five (5) years;
• Provide the name(s) of the person, within your organization who was most
actively concerned with managing each project;
• List and describe all legal claims against any member of the team alleging
errors and/or omissions, or any breach of professional ethics, including those
settled out of court, during in the past five (5) years.
2. Project Manager's Experience: Provide a comprehensive summary of the experience
and qualifications of the individual who will be selected to serve as the Project Manager.
This individual must have a minimum of five (5) years of experience in the management
of construction projects, possess extensive knowledge in the management of
construction projects, value engineering, working in a team environment, and be well
versed in project schedules and budgeting. Furthermore, this individual should have
served as Project Manager on projects having the same size (i.e., construction budget of
$3.5 million or greater) and complexity.
3. Previous Similar Projects: Provide a list of a minimum of ten (1 0) projects which
demonstrates the Team's experience in providing the services outlined in this RFQ. Must
provide the following information for each sample project.
• Client name, address, phone number, email
• Consultant name, address, phone number, fax and/or e-Mail address
• Description of the scope of the work
• Role of the firm and the responsibilities
• Month and Year the project was started and completed
• Total cost and/or fees paid to your firm
• Total cost of the construction, estimated and actual
4. Qualifications of Project Team: Provide a list of the personnel to be used on this
project and their qualifications. A resume of each individual, including education,
experience, and any other pertinent information shall be included for each team member
to be assigned to this project.
5. Risk-Assessment Plan (RAP): All Proposers must submit a Risk-Assessment Plan.
The RAP must not be longer than two (2) pages front side of page only should be
included within the RFQ response. The RAP should address the following items in a
clear and generic language:
• Potential project risks. (Areas that may cause the CM delays in scheduled
milestones, construction cost overage, overtaxing resources, cause any
conflicts with the required scope of work, or be a source of dissatisfaction
with the owner)
• Explanation of how the risks can be avoided/minimized
• Propose any options that could increase the value of this project
• Explain the benefits of the RAP. Address the quality and performance
differences in terms of risk minimization that the City can understand and
what benefits the option will provide to the user. No brochures or marketing
pieces please.
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Commission Memorandum -Issuance of the Construction Management at Risk RFQ for the South Pointe
Park Pier Project
December 14, 2011
Page 7 of8
RFQ PROCESS
The procedure for response evaluation and selection is as follows:
1. Request for Qualifications issued.
2. Receipt of responses.
3. Opening of responses and determination if they meet the minimum standards of
responsiveness.
4. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each
response in accordance with the requirements of this RFQ. If further information is
desired, Proposers may be requested to make additional written submissions or oral
presentations to the Evaluation Committee.
5. The Evaluation Committee will recommend to the City Manager the response or
responses acceptance of which the Evaluation Committee deems to be in the best
interest of the City. The following criteria shall be utilized by the Evaluation Committee
for the selection of the Proposer:
• (20 points) -The experience, qualifications, quality control and assurance plan,
and portfolio of the Principal Firm.
• (25 points)-The experience, qualifications and portfolio of the Project Manager,
as well as his/her familiarity with this project and a thorough understanding of the
methodology and approach to be used in this assignment.
• (20 points) -The experience and qualifications ofthe personnel assigned to the
Project Team as well as their familiarity with this project and a thorough
understanding of the methodology and approach to be used in this assignment.
• (20 points) -Willingness to meet time and budget requirements as demonstrated
by past performance, methodology and approach.
• (10points) -Past performance based on quality of the Performance Evaluation
Surveys and the Administration's due dilligence based upon reference checks
performed of the Firm's clients.
• (5 points)-Risk Assessment Plan that reflects a clear understanding of project
objectives; a thorough review of existing conditions; familiarity with the project
site; a thorough understanding of all permitting and regulatory requirements and
impacts; and other considerations that may impact the design and construction of
the proposed improvements.
The City may request, accept and consider proposals for the compensation to be paid under the
contract only during competitive negotiations.
6. After considering the recommendation(s) of the Evaluation Committee, the City Manager
shall recommend to the City Commission the response or responses acceptance of
which the City Manager deems to be in the best interest of the City.
7. The City Commission shall consider the City Manager's recommendation(s) in light of
the recommendation(s) and evaluation of the Evaluation Committee and, if appropriate,
approve the City Manager's recommendation(s). The City Commission may reject City
Manager's recommendation(s) and select another response or responses. In any case,
City Commission shall select the response or responses acceptance of which the City
Commission deems to be in the best interest of the City. The City Commission may also
reject all proposals.
8. Negotiations between the selected respondent and the City Manager will take place to
arrive at a contract. If the City Commission has so directed, the City Manager may
proceed to negotiate a contract with a respondent other than the top ranked respondent
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Commission Memorandum -Issuance of the Construction Management at Risk RFQ for the South Pointe
Park Pier Project
December 14, 2011
Page 8of8
if the negotiations with the top ranked respondent fail to produce a mutually acceptable
contract within a reasonable period of time.
9. A proposed contract or contracts are presented to the City Commission for approval,
modification and approval, or rejection.
10. If and when a contract or contracts acceptable to the respective parties is approved by
the City Commission, the Mayor and City Clerk sign the contract(s) after the selected
respondent(s) has (or have) done so.
RFQ TIMETABLE
The anticipated schedule for this RFQ and contract approval is as follows:
RFQ to be issued December 15, 2011
Commission approval/authorization of negotiations March 2012
Pre-construction services I GMP negotiation April 2012
GMP Amendment Award July 2012
Projected construction start date September 2012
CONCLUSION
The Administration recommends that the Mayor and the City Commission authorize the
issuance of a Request for Qualifications (RFQ) for a Construction Manager at Risk to provide
pre-construction services and construction phase services via a Guaranteed Maximum Price
(GMP) Amendment for the South Pointe Park Pier Project.
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