CONSTRUCTION COMMITTEE
JULY 16, 2015
Subject/Action
SUBJECT: GATEWAY LIGHTING RETROFIT PROJECT
ACTION: APPROVE USE OF DESIGN-BUILD CONTRACTING DELIVERY APPROACH FOR THE GATEWAY LIGHTING RETROFIT PROJECT
Heading
RECOMMENDATION
Title
CONSTRUCTION COMMITTEE RECOMMENDED (5-0):
A. finding that awarding design-build contracts pursuant to Public Utilities Code Section 130242 (a) will achieve private sector efficiencies in the integration of the design, project work, and components related to the construction and installation of energy efficient lights in Metro’s Gateway Headquarters Building;
(REQUIRES TWO-THIRDS VOTE)
B. authorizing the Chief Executive Officer to award the competitively bid design-build contract to the lowest responsive, responsible bidder, pursuant to Public Utiliities Code Section 130051.9 (c); and
C. approving an increase of Contract Modification Authority (CMA) for Contract No. PS07643022 with Control Technologies to provide Building Management System upgrades in the amount of $1,000,000, increasing the CMA from $100,000 to $1,100,000.
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.
The Metro Gateway Lighting Retrofit Project will remove existing recessed fluorescent light fixtures and replace them with new, energy efficient, LED light fixtures. This project is consistent with the intent and identified action to reduce energy use in our facilities as outlined in our Environmental Policy and Energy Conservation and Management Plan. A cost-benefi analysis of the Gateway Lighting Retrofit Project provides a cost and savings comparison between LED fixtures and fluorescent fixtures (see Attachment C).
The current Gateway building management system is proprietary therefore Control Technologies, Inc. must be part of the project team. As part of the project team, the control systems contractor must work with the design build contractor and be involved in the design, specification, installation, and commissioning of the lighting and the control components to ensure that the lighting controls will operate with the existing building management system.
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.
Utilization of a design-build process is allowed under Public Utilities Code Section 130242, which provides for award of a design-build contract to the lowest responsive and responsible bidder. As set forth above, awarding design-build contracts will achieve certain efficiencies in the projects, such as reducing project administration and management costs, and expediting project completion.
Approval of this action would allow staff to proceed with a solicitation utilizing the Design-Build Contracting Delivery Approach pursuant to Public Utilities Code Section 130242.
The project was selected for the Design-Build Contracting Delivery Approach based on the following considerations:
• A single point of responsibility for design and construction will increase the time and management efficiency on the implementation of the projects;
• Metro will have the benefit of an integrated team that provides engineering, construction management, and administrative resources, resulting in cost savings;
• Staff project development resources are limited, so more budgeted projects can be accomplished by adding design-build capability;
• Metro's design risks are shifted to Design-Builder, while changes related to design are minimized;
• The project requires standard or minimal design effort and it therefore more conducive to being implemented by design-build contractors with general engineering and contracting capacity.
The major cost savings on this project is controlling the use of electricity via the building management control systems. Controls will be installed that will monitor the lighting levels and reduce the lighting in all areas via these automatic controls. Thus the lighting control system must be compatible with the existing building systems. The major Gateway building systems are already controlled by the building management control system. The building management system is a computerized building-automation and energy management system consisting of thousands of automatic devices and controls for the building heating, ventilation, air conditioning and lighting. It is imperative that the new system not only support the controls necessary for the lighting project to be a success but it must communicate with the entire building system.
Financial_Impact
FINANCIAL IMPACT
The FY16 funding for this project will come from Project Number 210802, Gateway Lighting Retrofit Project, in the amount of $239,438 in Cost Center 8510, Construction Contracts/Procurement. Since this is a multi-year capital project, the cost center manager and Executive Director, Engineering & Construction will be responsible for budgeting in future years.
Impact to Budget
The source or funds for this project is the Sustainability Implementation Program funds which is a board approved annual allocation and is eligible to fund Bus and Rail Operations. No other source of funds were considered.
.Alternatives_Considered
ALTERNATIVES CONSIDERED
This project is needed to avoid increasing electricity rates. This work could be accomplished utilizing consultants to prepare separate designs or with designs prepared by staff for bid and 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, as well as significant reductions in contract cost and overall project schedule. The scope and size of the project lend itself to the more streamlined design-build project delivery method.
.Attachments
ATTACHMENTS
A Procurement Summary
B Contract Modification/Change Log
C Cost Benefit Analysis for 5,000 2x4 Fixtures
Prepared_By
Prepared By:
Cris B. Liban, Executive Officer, Environmental Compliance and Sustainability (213) 922-2471
Reviewed By
Reviewed By:
Ivan Page, Interim Executive Director Vendor/Contract Management, 213 922-6383
Bryan Pennington, Executive Director, Engineering & Construction, 213 922-7449
