Meeting_Body
CONSTRUCTION COMMITTEE
OCTOBER 18, 2018
Subject
SUBJECT: DIVISION 21 MIDWAY YARD, MAIN SHOP, BLOWDOWN MODIFICATION
Action
ACTION: APPROVE USE OF DESIGN-BUILD CONTRACTING DELIVERY
Heading
RECOMMENDATION
Title
CONSIDER:
A. FINDING that awarding a design-build contract pursuant to Public Utilities Code Section 130242(a) will achieve certain private sector efficiencies in the integration of design, project work, and components related to real property renovation, improvements, and construction work for Project 204094, Division 21 Midway Yard, Main Shop, Blowdown Modification; and
(REQUIRES A 2/3 VOTE OF THE BOARD)
B. AUTHORIZING the Chief Executive Officer to solicit and award low bid design-build contracts for renovations, improvements, and construction for Division 21 Midway Yard, Main Shop, Blowdown Modification, pursuant to Public Utilities Code Section 130242.
Issue
ISSUE
Metro is authorized to enter into design-build contracts pursuant to Public Utilities Code Section 130242. This section requires that the Board make the finding set forth in Recommendation A. This action is in conformance with Metro’s typical business process and procedures for award of low-bid design-build contracts.
Background
BACKGROUND
Project 204094 was created to address capital improvements at Division 21 Midway Yard, including the main yard and car cleaning platform. The proposed work is to upgrade various fixed infrastructure and equipment to meet Corporate Safety standards for shop equipment and to comply with environmental requirements. Responsibility for overseeing the improvements moved from Rail Fleet Services in Operations to Program Management in July 2018.
Discussion
DISCUSSION
The primary benefit of the design-build process is a shortened project schedule where the design-builder is able to start construction while the design is being completed. Other possible benefits include additional efficiencies in project management, administration, and coordination.
California Public Utilities Code Section 130242 provides for award of a design-build contract to the lowest responsive and responsible bidder. The primary benefit of the design-build process is a shortened project schedule where the design builder is able to start construction while the design is being completed. Other possible benefits include additional efficiencies in project management, administration, and coordination. The design-build approach delivers the project ahead of a traditional design-bid-build project delivery method thus resulting in a lower total project cost. Staff has experienced success with design-build construction contracts in the Capital Program and is seeking additional opportunities to expand the use of this procurement delivery system.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
The Board action will not have an impact on established safety standards.
Financial_Impact
FINANCIAL IMPACT
Adoption of design-build would not have an adverse financial impact. Project 204094 has an approved Life-of-Project (LOP) budget of $1,024,000 with $97,000 expenditure to date. FY19 budget includes $300,700 for this project.
Impact to Budget
Project is funded with a combination of Federal and local sources, including Proposition C 40%, Proposition A 35%, some of which are eligible for bus and rail operations.
Since this is a multi-year project, the Project Manager, Cost Center manager, and Chief Program Management Officer will be responsible for budgeting the cost in future fiscal years.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
Seeking approval to award design-build contracts supports Strategic Goal 1: Provide high quality mobility options that enable people to spend less time traveling. The planned improvement at Division 21 would optimize the reliability and performance of the Metro Gold Line by revitalizing Metro’s transit assets. The proposed recommendations also support Strategic Goal 5: Provide responsive, accountable, and trustworthy governance because they will help Metro supplement and strengthen programs to address workplace safety, security, and employee wellness.
Alternatives_Considered
ALTERNATIVES CONSIDERED
This work could be accomplished through separate design and construction contracts or through design services provided by agency staff and bid for construction. Staff does not recommend this approach. There are distinct and clear advantages to having a single contractor responsible for both design and construction, primarily in the avoidance of certain project management, staff, administration, and coordination costs.
Next_Steps
NEXT STEPS
Staff will prepare design-build solicitation packages for the selected project.
Prepared_by
Prepared by: James Wei, Deputy Executive Officer, Project Management, (213) 922-4722
Tim Lindholm, Executive Officer, Capital Projects, (213) 922-7297
Reviewed_By
Reviewed by: Debra Avila, Chief Vendor/Contract Management Officer, (213) 418-3051
Richard Clarke, Chief Program Management Officer, (213) 922-7557
