Regular City Council Meeting


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  Consent   1.C.       
Meeting Date: 09/27/2021  
TITLE:    W.O. 19-42: West End Water Treatment Plant Project, GC/CM Preconstruction Services Contract
PRESENTED BY: Randy Straus
Department: Public Works  

Staff recommends that City Council approve a General Contractor/Construction Manager (GC/CM) pre-construction services contract with Garney Companies, Inc. for W.O. 19-42: West End Water Treatment Plant Project in the amount of $273,035.20.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
Identifying and securing an alternate source of treated water for the City of Billings is a priority to the Public Works Department.  In the current fiscal year through FY23, the City has $126 million in funding budgeted to design and build the projects needed for the new water system on Billings' west end.  Over the next two years, design and start of construction is planned for a new water treatment plant, river water intake and associated pump station, reservoir, and approximately 5 miles of transmission pipeline.

On February 8, 2021, Council approved Resolution 21-10925 allowing the use of an alternative project delivery method as authorized by MCA 18-2-502 for construction of water system projects on Billings' West End, including the water treatment plant under current consideration.  The City has elected to move forward with the General Contractor / Construction Manager (GC/CM) contract format since its structure is more conducive to ensuring integral City staff involvement in project direction and decisions as developed by the project team consisting of the City, Engineer (Burns & McDonnell) and GC/CM Contractor.  Some major benefits of GC/CM contracts are that they bring the contractor, procured through an open public process, onto the project team as early as possible in order to take advantage of the expert contributions the contractor can bring to the project design and cost development.  GC/CM contractors are often able to identify opportunities to reduce overall project costs by introducing concepts for the team to evaluate that are potentially more cost-effective to build.  Information is gained quickly about actual construction means, methods and materials, which leads to improved design accuracy and completeness.  During the pre-construction phase, the GC/CM contractor brings a level of cost certainty to the project before the design is complete, which informs overall budgets and the scope of current and future projects.

The GC/CM contractor will begin this pre-construction phase of the water treatment plant project by assisting the team of City staff and Burns & McDonnell (BMcD) to review the project design which BMcD has advanced to approximately 30% completion.  The GC/CM contractor will deliver a project management plan, review major project risks, and develop a project cost model and schedule.  The team will participate in design reviews and work together to identify opportunities to reduce project costs by innovative methods.  The GC/CM will develop progressively more detailed and accurate cost estimates as the design advances.  All pricing information used by the GC/CM contractor to produce "open-book" cost estimates are reviewed by the project team.  The team will identify opportunities to secure project equipment and materials early on to bring greater certainty to the overall project cost.  At the end of the pre-construction phase, the GC/CM contractor will present a Guaranteed Maximum Price (GMP) for construction of the project, which City Council may or may not approve at that time.  If Council does not approve the GMP, the Contract allows for the City's relationship with the GC/CM contractor to be terminated, and the City could then proceed with other options to construct the project.  If Council approves the GMP, the pre-construction contract will either be amended to include the construction phase or a separate construction contract will be developed and approved.

Recommending Garney Companies, Inc. as the GC/CM contractor involved a selection committee evaluating interested contractors using the Request for Qualifications (RFQ) and Request for Proposals (RFP) process.  RFQ's for this project were also submitted by PCL Construction, Kiewit Infrastructure, Moltz-Graham, Dick Anderson Construction, Swank Enterprises, and Sletten Companies. After evaluating and scoring the SOQs, the selection committee advanced and requested final proposals from Garney and PCL.  Final proposal submissions were evaluated on the technical component and a pricing component.  The technical component consisted of an evaluation and scoring of project team and capacity, strategic project approach, and approach to the GC/CM delivery process.  The overall best value proposal was determined by combining the score of the technical and price proposal.
City Council may:
  • Approve a General Contractor/Construction Manager (GC/CM) Pre-construction Services contract with Garney Companies; or,
  • Not approve a GC/CM contract.  If this project is not completed, the City will be unable to proceed with the plans needed to provide for the present and future drinking water redundancy and capacity needs of City of Billings residents.
The W.O. 19-12: West End Water Treatment Project was budgeted in FY22 using water funds.  The amount budgeted was $57 million which includes the current pre-construction contract in the amount of $273,035.20 and the future construction contract.

WO1942 WEWTP CG/CM Pre-Construction Contract


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