File #: 2023-0412   
Type: Contract Status: Passed
File created: 6/9/2023 In control: Construction Committee
On agenda: 9/21/2023 Final action: 9/28/2023
Title: AUTHORIZE the Chief Executive Officer to: A. AWARD a cost plus fixed fee contract, Contract No. AE94982, to Arcadis U.S. Inc , for Construction Management Support Services for State Route 91 (SR91) Projects, for the not-to-exceed amount of $65,149,457.24, for a base term of seven (7) years subject to resolution of any properly submitted protest(s), if any; and B. EXECUTE individual Task Orders and modifications within the Board approved not-to-exceed amount.
Sponsors: Board of Directors - Regular Board Meeting
Indexes: "Hot Spots" Program, Auxiliary lanes, Bids, Budgeting, Construction, Construction management, Construction Support, Contract administration, Contracts, Cost-plus Contract, Design build, Eb Sr91 Atlantic Avenue /Cherry Avenue Auxiliary Lane Improvement (Project), I-605, I-605 Hot Spots- Wb (Westbound) Sr-91 Improvements From Alondra To Shoemaker (Project), Interchanges, Labor, Measure M, Measure R, Procurement, Professional Services, Project management, Safety, Southern California Highways
Attachments: 1. Attachment A - Procurement Summary, 2. Attachment B - DEOD Summary

Meeting_Body

CONSTRUCTION COMMITTEE

SEPTEMBER 21, 2023

 

Subject

SUBJECT:                     CONSTRUCTION MANAGEMENT SUPPORT SERVICES FOR THE SR91 PROJECTS

 

Action

ACTION:                     APPROVE RECOMMENDATIONS

 

Heading

RECOMMENDATION

 

Title

AUTHORIZE the Chief Executive Officer to:

 

A.                     AWARD a cost plus fixed fee contract, Contract No. AE94982, to Arcadis U.S. Inc , for Construction Management Support Services for State Route 91 (SR91) Projects, for the not-to-exceed amount  of $65,149,457.24, for a base term of seven (7) years subject to resolution of any properly submitted protest(s), if any; and

 

B.                     EXECUTE individual Task Orders and modifications within the Board approved not-to-exceed amount.

 

Issue

ISSUE

 

A Construction Management Support Services (CMSS) is required to assist Metro staff in construction management oversight for two highway construction projects on SR91. Support services will begin in the construction contract procurement phase, continue through pre-construction activities and construction, and culminate in the construction contract close. The CMSS will assist Metro staff with ensuring compliance with contract requirements and government regulations.

 

Background

BACKGROUND

 

Eastbound SR-91 Atlantic Avenue to Cherry Avenue

 

The project is in the City of Long Beach and adjacent to the City of Paramount and consists of an auxiliary lane on Eastbound State Route 91 within a 1.4-mile segment from the Southbound Interstate 710 to EB SR-91 connector, to Cherry Avenue. The proposed improvements include the construction of an auxiliary lane on eastbound SR-91 from Atlantic Avenue to Cherry Avenue to improve safety and capacity during peak hours.

Westbound SR-91 Shoemaker Avenue to Alondra Boulevard

The project is in the Cities of Cerritos and Artesia and consists of improving approximately 3 miles of freeway along Westbound State Route 91 (WB-91) between approximately Shoemaker Avenue and the Interstate 605 (I-605) interchange, and at the I-605 northbound exit to Alondra Boulevard. The proposed improvements include, and are not limited to:

 

a.                     Capacity and safety enhancements to the SR-91 and I-605 interchange to create a three-lane exit from westbound SR-91 to I-605: a one-lane I-605 southbound connector, and a two-lane I-605 northbound connector.

b.                     Improve functionality of the Norwalk, Pioneer Boulevard, and SR-91/I-605 connector interchanges by increasing merging/weaving distances and eliminating problematic on-ramp features. 

c.                     Improve safety through simplified lane exit movements at Alondra Boulevard and northbound I-605 mainline.

Even though this project was scoped and initiated before the adoption of Metro’s Objectives for Multimodal Highway Investment (June, 2022), it is consistent with those objectives given that: 1) implementation of the project will not require any displacements; 2) the project supports traffic mobility, enhanced safety, economic vitality and access to opportunity, and; 3) multi-modal features were incorporated in the scope of the project (on local arterials) through an integrated planning approach to address the needs of local communities, and create a safer transportation system. Further, no residential or business displacements or property acquisitions are necessary for these two projects.

 

Discussion

DISCUSSION

 

Findings

 

The Projects are design-bid-build projects, meaning that all design plans and specifications have been completed by Metro’s design consultants prior to the award of a construction contract. As such, it is beneficial to have additional technical reviews of those technical bid documents by a consultant team to minimize risks to Metro during bidding and construction. The CMSS will provide review support of the technical bid documents, administration, inspection services, and technical support during the bid period, and construction and close out phases of the project. The CMSS will provide skilled individuals to assist Metro with the construction management of the projects. The consultant team will reside in an integrated project field office with Metro staff.

 

Considerations

 

The selected proposer has the experience and competence in construction support services, design bid-build, and integrated team structures on some of the most challenging and complex projects in Los Angeles County. The CMSS Contract is for a base term of seven (7) years plus two (2) one-year options. The CMSS Contract will be a cost plus fixed fee contract, meaning the consultant services will be performed within the cost constraints of an Advanced Cost Agreement (ACA). The ACA will include negotiated direct labor rates, indirect cost rates, general and administrative expenses (if applicable), fixed fee, and negotiated labor hours for the level of effort to match the work. The contract will be funded on a task order basis from the two project budgets with consideration given to information available at the time of planning and applicable time constraints on the performance of the work. MetroProgram Management shall ensure that strict project controls are in place so that Metro  may closely monitor the expenditure of the contract not-to-exceed amount and schedule. No funds are obligated until negotiations for each task order are finalized within the total not-to-exceed amount approved by the Board.

 

Determination_Of_Safety_Impact

DETERMINATION OF SAFETY IMPACT

 

Approval of this item will have no impact on safety.

 

Financial_Impact

FINANCIAL IMPACT

 

The Projects are fully funded through a combination of Measure R and State TCEP funds.   They are funded on a fiscal year basis under project numbers 460351 and 462314 in cost center 8510, under various accounts including Professional/Technical Services and ROW acquisitions. The CMSS contract work scope will be planned and funded on an annual basis until the Life of Project Budget is established. It is the responsibility of the Project Manager and Chief Program Management Officer to budget for this project in future fiscal years.

Impact to Budget

 

The source of funds for this recommendation are Measure R Highway Capital and Measure M Highway Capital. No other funds have been considered. These funds are not eligible for Metro’s operations of bus and rail.

 

Equity_Platform

EQUITY PLATFORM

 

The two projects this contract will support are located within Equity Focus Communities. No Residential or business displacements or property acquisitions are necessary for the project. Proposed improvements would disproportionately serve an overwhelming majority Black, Indigenous, and/or other People of Color (BIPOC) community. The Project will improve safety for people along the project corridor during construction, by providing a community engagement program with the goals of building project awareness, sharing project information, identifying key issues and concerns important to the public, and integrating public feedback into the project during the construction phase. Metro will provide ongoing multilingual outreach to and engagement with all project stakeholders to ensure they are kept informed of the project's construction progress as well as its impact on local communities. Stakeholders are also made aware of associated mitigation measures deployed by the project to lessen or reduce construction related impacts. In addition to general stakeholders, Metro also engages local government officials as they develop public outreach plans to ensure consistency with the projects approved environmental mitigations. To ensure maximum opportunity for participation on this contract, Metro staff performed extensive outreach to the small business community, including those within the Disadvantaged Veterans Business Enterprise and the Small Business Enterprise programs. The solicitation was advertised through periodicals of general circulation, posted on Metro’s Vendor Portal, and an e-mail notice to small businesses with applicable NAICS codes. The Construction Management Team presented at TBAC and attended meetings with the Small Business Community to further define the experience and background for this solicitation. The Proposal Evaluation Team was comprised of department personnel that were age, race, and gender diverse.

 

Contract No. AE94982 includes a twenty-seven (27%) goal for Small Business Enterprise (SBE), as well as a three (3%) Disadvantaged Veteran Business Enterprise requirement of the Total Contract Price. Arcadis U.S. Inc.,  made a commitment of  28.05% SBE and a 3.02% DVBE commitment. DEOD will actively monitor the consultant and their subcontracting plan to ensure the awarded party will uphold their commitment to the SBE and DVBE goals during the Contract term

 

 

Implementation_of_Strategic_Plan_Goals

IMPLEMENTATION OF STRATEGIC PLAN GOALS

 

The Project is consistent with the following Metro Vision 2028 Goals and Objectives:

 

Goal 1: Providing high-quality mobility options that enable people to spend less time traveling.

 

Goal 3: Enhance communities and lives through mobility and access to opportunity.

 

Goal 4: Transform LA County through regional collaboration and national leadership.

 

Alternatives_Considered

ALTERNATIVES CONSIDERED

 

The Board could direct Metro staff to perform construction support tasks with current in-house resources. This alternative would require Metro to divert resources from on-going projects and/or hire multiple full-time personnel that are not immediately available or funded. Additionally, this decision would result in schedule delays and cost increases for these projects. In addition, Metro received TCEP grants and as the implementing agency assumes responsibility and accountability for the use and expenditure of program funds.

 

Staff are concurrently addressing the possibility of Caltrans administering future highway projects funded through Measure R and Measure M, with the exception of future soundwall projects or any projects currently past 30% design under Metro contracts.

 

Next_Steps

NEXT STEPS

 

After Board approval of the recommended action, staff will complete the process to award and execute Contract No AE94982.

 

Attachments

ATTACHMENTS

 

Attachment A - Procurement Summary

Attachment B - DEOD Summary

 

Prepared_by

Prepared by: Michelle McFadden, Deputy Executive Officer, Project Management (213) 922-3026

Brad Owen, Interim Senior Executive Officer, Project Management (213) 418-3143

Debra Avila, Deputy Chief Vendor/Contracts Management Officer, (213) 418-3051

 

Reviewed_By

Reviewed by:

Sameh Ghaly, Interim Chief Program Management Officer, (213) 418-3369