Meeting_Body
CONSTRUCTION COMMITTEE
OCTOBER 20, 2016
Subject/Action
SUBJECT: REGIONAL CONNECTOR TRANSIT CORRIDOR PROJECT
ACTION: AUTHORIZE THE CHIEF EXECUTIVE OFFICER (CEO) TO EXECUTE A CONTRACT MODIFICATION TO CONTRACT C0980 TO REVISE CONSTRUCTION SEQUENCING AND ALLOW FOR EARLIER RETRIEVAL OF TBM
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to negotiate and execute Modification No. 73 to Contract No. C0980, with Regional Connector Constructors, to Revise Construction Sequencing and Allow for Earlier Retrieval of the Tunnel Boring Machine (TBM), within a not-to-exceed amount of $3,700,000 increasing the total contract price from $995,188,519 not-to-exceed $998,888,519. This action does not increase the life-of-project budget.
Issue
ISSUE
On April 30, 2015, the Metro Board approved Contract Modification No. 10, to transfer incomplete utility relocation work from Contract No. C0981R to Contract No. C0980 for a not-to-exceed amount of $27.1 million. On December 3, 2015, the Metro Board approved Contract Modification No. 32, for additional utility work and schedule recovery measures, in an amount not-to-exceed $49.0 million. One of the schedule recovery measures included the re-sequencing of piling and decking work on Flower Street to facilitate an earlier retrieval of the TBM following boring of the first tunnel, which is a critical path activity.
In the ensuing 10 months, cumulative impacts have occurred on Flower Street which have been beyond the contractor’s control and have led to two additional months of forecasted delay to the project critical path. To avoid this delay and associated costs, the project team has developed a further schedule recovery approach which permits a faster excavation of the TBM retrieval shaft located at the intersection of 4th and Flower streets. This approach requires additional design, piling, night-time and weekend work at additional project cost. The project is seeking authority to issue a contract modification in an amount not-to-exceed $3.7 million so that work critical to the project schedule may begin by the end of October 2016. The final negotiated price of the work and the success of this added recovery measure is highly dependent upon the project’s ability to secure extended night and weekend work permits. Time constraints require that the design of a supplemental shoring system commence immediately, so that appropriate approvals can be secured before work must begin. This action is estimated to save two months to the critical path. Based on the approximate delay costs of $5 million per month, this approach would keep the project from incurring $10 million in additional delay costs, a net savings of $6.3 million.
Discussion
DISCUSSION
Project Description:
The Regional Connector Transit Corridor Project (the Project) consists of the design and construction of a 1.9-mile light rail transit subway in downtown Los Angeles connecting the existing Metro Gold Line, Metro Blue Line, and Metro Exposition Line light rail transit (LRT) systems. The Project begins at the existing 7th/Metro Station and extends north to 2nd Street and Hope Street, turning east along 2nd Street to a new underground rail junction on Alameda Street. The Project includes a cut-and-cover box structure on Flower Street between the 7th /Metro Station and 4th Street and three new underground stations at 2nd/Hope, 2nd/Broadway, and 1st/Central Avenue.
On April 24, 2014, the Board authorized the CEO to award a 76-month firm fixed price contract (C0980) with Regional Connector Constructors (a Joint Venture between Skanska USA Civil West California District, Inc., and Traylor Bros. Inc.) for the final design and construction of the Regional Connector Transit Corridor Project. The CEO awarded the Contract to Regional Connector Constructors (RCC) on May 6, 2014, and staff issued the Notice-to-Proceed (NTP) on July 7, 2014.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
This Board action will not have any negative impact on established safety standards.
Financial_Impact
FINANCIAL IMPACT
Funds are included in the FY17 budget for this action under Project 860228 - Regional Connector Transit Corridor Project in Cost Center 8510 (Construction Project Management), and Account Number 53101 (Acquisition of Building and Structure). Since this is a multi-year project, the Chief Program Management Officer and the Project Manager will be responsible for budgeting costs in future years.
Impact to Budget
The sources of funds for the recommended action are Federal 5309 New Starts, Measure R 35% TIFIA Loan, and various other federal and state grants as stated in the project funding plan. The approved FY17 budget is designated for the Regional Connector Transit Corridor Project and does not have an impact to operations funding sources. This Project is not eligible for Propositions A and C funding due to the proposed tunneling element of the project. No other funds were considered.
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board may decline to approve the recommended action. This is not recommended as this recommendation allows the project to avoid additional delays and associated costs.
Attachments
ATTACHMENTS
Attachment A - Procurement Summary
Attachment B - DEOD Summary
Attachment C - Contract Modification Authority (CMA) Summary
Prepared_by
Prepared by:
Gary Baker, Deputy Executive Officer, Project Director (213) 893-7191
Reviewed_By
Reviewed by:
Richard Clarke, Chief Program Management Officer (213) 922-7447
Debra Avila, Chief Vendor/Contract Management Officer (213) 418-3051
