BEX IV and BTA IV Lincoln High School: Approval of GC/CM

School Board Briefing/Proposed Action Report
Informational (no action required by Board)
DATE:
FROM:
LEAD STAFF:
I.
Action Report (Board will be required to take action)
May 24, 2016
Dr. Larry Nyland, Superintendent
Dr. Lester Herndon, Associate Superintendent of Facilities & Operations
(206) 252-0644, ltherndon@seattleschools.org
TITLE
BEX IV & BTA IV Lincoln High School: Approval of
GC/CM Contract P5084 to Lydig Construction, Inc.
II.
For Introduction:
For Action:
June 01, 2016
June 15, 2016
WHY BOARD ACTION IS NECESSARY
A. The Office of Superintendent of Public Instruction (OSPI) Form D-5 Application for
Preliminary Funding Status requires the applicant school district’s Board approval to use
alternative Public Works contracting for construction of the subject project (see accompanying
BAR).
B. Per Board Policy No. 6220, Procurement, all contracts exceeding $250,000 must be brought
before the Board for approval.
III.
FISCAL IMPACT/REVENUE SOURCE
The revenue sources for this motion are BEX IV Capital Levy at $19,238,051 and BTA IV Capital
Levy at $74,077,998. This Project is budgeted for $93,316,049.
Expenditure:
One-time
Annual
Other Source
IV. POLICY IMPLICATION
Per Board Policy No. 6220, Procurement, all contracts over $250,000 must be brought before the
Board for approval.
V. RECOMMENDED MOTION
I move that the School Board authorize the Superintendent to utilize the General Contractor /
Construction Manager (GC/CM) alternative construction delivery method on the Lincoln
High School project and award Contract P5084 to Lydig Construction, Inc. This authorizes
the GC/CM Contractor to immediately provide pre-construction services for an amount not
to exceed $300,000. This approval also authorizes the Superintendent to negotiate, with any
minor additions, deletions, and modifications to the Agreement as deemed necessary, and
sign a contract amendment for the Guaranteed Maximum Price (GMP) as defined by the
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RCW 39.10.370 for an amount not to exceed $56,749,750 which includes Specified General
Conditions, Negotiated Support Services, the Maximum Allowable Construction Cost
(MACC) including subcontractor bonds, the MACC Contingency, and the GC/CM fee;
excluding Washington State sales tax, no earlier than completion of 90% of Construction
Documents unless otherwise agreed to by the parties.
The GMP excludes the Pre-Construction Services allowance.
VI. BOARD COMMITTEE RECOMMENDATION
This motion was discussed at the Operations Committee meeting on May 19, 2016. The
Committee moved this item to the full Board for consideration.
VII. BACKGROUND INFORMATION
The project is funded through the BEX IV and BTA IV levies passed by voters in February 2013
and February 2016 respectively. The project was funded for a limited modernization of the
257,000 square foot facility. The project is designed for 1,600 high school students.
The Lincoln site has been used as an interim school site since 1997.
The State of Washington allows public agencies to utilize alternative public works contracting
methods including the GC/CM delivery model. Utilizing GC/CM allows the district to select a
contractor on factors other than low price, including relevant experience and project specific
qualifications. This allows the GC/CM to join the project team during early design to provide
expertise in scheduling, construction phase planning, means and methods, constructability, site
logistics, and cost estimating. These contributions are welcomed by the district staff and the
architect to collectively manage this very complex modernization and addition.
The district has utilized the GC/CM delivery method on several complex projects in recent years,
including Denny Middle School/Chief Sealth, Nathan Hale, Garfield, Cleveland, and Roosevelt
High Schools, and is currently utilizing the GC/CM approach on the Wilson Pacific, Olympic
Hills and Loyal Heights projects. The construction management firm for Lincoln, Heery
International, was, or is currently, involved with six of the above mentioned GC/CM projects and
highly recommends utilizing the GC/CM approach on this project. Use of the GC/CM method
has been found to reduce risk to the district by early involvement of the contractor during the
design phase. GC/CM has also been found to reduce the risk of claims on complex projects.
The proposal to use GC/CM for Lincoln was presented to the State Contracts Review Board and
approved unanimously.
The likely benefits from utilizing GC/CM on Lincoln High School are considerable, including:
Selection of the GC/CM is based largely on qualifications and experience relevant to the
specific nature and challenges of this project, including experience with historic renovations,
structural and seismic improvements to existing buildings, strategic construction schedule
planning, coordination on tight urban site, storm drainage and temporary erosion and sediment
control, and successful residential neighborhood relations.
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The GC/CM selection is also based on a competitively bid fee on a set construction
value.
The GC/CM acts as an advocate of the owner rather than not.
Through pre-construction involvement, the GC/CM will understand the work long
before bidding.
The GC/CM will participate in setting the schedule, packaging the scope to fit the
marketplace, and realistically setting expectations before work is procured, in order to
successfully deliver on value.
Open book cost accounting of the work brings transparency to actual value of work to
be constructed.
GC/CM participates and owns pre-construction cost estimating.
GC/CM participates actively in ongoing constructability reviews throughout the
design process, resulting in cost-effective and value-based solutions which the
Architect welcomes.
Top tier Contractors are much more likely to compete for this project if not low bid,
thus carrying a higher likelihood of quality assurance and timely completion.
GC/CM and subcontractors are motivated to build their reputations with the owner
by performing to a maximum, not minimum level.
Because the basic arrangement between owner and GC/CM is relationship-based, the
chances of costly claims litigation diminishes greatly.
Phasing of bid buy-out and flexibility to adjust bid packages as the work is boughtout allowing for cost management by the owner and GC/CM team.
On March 24, 2016, Lincoln High Schools Modernization Project was presented to the State
Project Review Committee (PRC) which authorizes the use of alternative delivery methods for
Public Agencies and found this project met 4 of the 5 criteria due to project complexity and historic
elements. The vote from the State of Washington, Capital Projects Advisory Review Board
(CPARB), was unanimous to approve GC/CM due to the following complexities:
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Anticipating Landmarks designation to exterior and interior portions will require
heightened attention to protecting the building.
Unforeseen conditions of existing building will challenge the project team.
Small urban site of 6.7 acres flanked by residential community will require continuous
outreach during design and construction.
Addressing the challenges of a historic renovation while working within a tight
budget.
Challenging permitting process for both Master Use Permit and Building Permit.
Potential volatile escalation period over the next several years.
The project was publicly advertised on March 29, 2016, with a total of five (5) GC/CM firms
submitting qualifications. From the firms submitting qualifications, four (4) firms were selected by
the panel to be the most qualified for interviews. Interviews occurred May 11, 2016, and after
evaluation the panel selected three (3) to submit priced proposals. Sealed proposals were received
May 18, 2016. Lydig received the highest point total. A copy of the bid and final scoring results are
attached.
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VIII. STATEMENT OF ISSUE
Whether to authorize Lydig Construction, Inc. as the GC/CM contractor.
IX. ALTERNATIVES
Deny Motion. If t he motion is denied, the district as a public agency will be required to procure
a general contractor for construction via advertised lowest price bidding. The benefits described
in section VII above would not be available to this Project.
X.
RESEARCH AND DATA SOURCES / BENCHMARKS
Capital Projects Advisory Board (CPARB). http://www.ga.wa.gov/cparb/
RCW Chapter 39.10.340: Alternative Public Works Contracting Procedures.
http://apps.leg.wa.gov/RCW.default.aspx?cite=39.10.340
RCW Chapter 39.10: Under certain circumstances, alternative public works contracting
procedures may best serve the public interest if such procedures are implemented in an open and
fair process based on objective and equitable criteria.
RCW Chapter 39.10.280: A public body not certified under RCW 39.10.270 must apply for
approval from the committee to use the design-build or general contractor/construction manager
procedure on a project. A public body seeking approval must submit to the committee an
application in a format and manner as prescribed by the committee. The application must include
a description of the public body’s qualifications, a description of the project, and its intended use
of alternative contracting procedures.
RCW 39.10.340: Subject to the process in RCW 39.10.270 or 39.10.280, public bodies may
utilize the general contractor/construction manager procedure for public works projects where:
(1) Implementation of the project involves complex scheduling, phasing,
or coordination.
(2) The project involves construction at an occupied facility which must continue
to operate during construction.
(3) The involvement of the general contractor/construction manager during the
design stage is critical to the success of the project.
(4) The project encompasses a complex or technical work environment; or
(5) The project requires specialized work on a building that has historic significance.
XI. TIMELINE FOR IMPLEMENTATION / COMMUNITY ENGAGEMENT
Upon Board approval of this motion, a Notice to Proceed will be issued to the selected
GC/CM.
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Summary timeline:
CPARB Project Review Committee Approval to Utilize GC/CM
Schematic Design
Advertisement for GC/CM Firms
Selection of GC/CM Firm
District Board approval of use of GC/CM and Approval of GC/CM Contract
Pre-Construction Engagement of GC/CM
Design Development
Construction Documents
Negotiation of Maximum Allowable Construction Cost (MACC)
School Board Action to approve GC/CM Construction Agreement
Construction Commencement
XII.
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March 24, 2016
May-July 2016
March 2016
May 2016
June 2016
June 2016
August-Dec 2016
Jan - August 2017
August 2017
September 2017
October 2017
ATTACHMENTS
Contract P5084 (Placeholder)
Executed Approval of General Contractor / Construction Manager (GC/CM) Delivery
Method, and Resolution 2015/16-18 (Placeholder)
CPARB Approval Letter
Bid Results
Qualifications Scoring
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Executed Approval of General
Contractor / Construction Manager
(GC/CM) Delivery Method, and
Resolution 2015/16-18
Placeholder
SEATTLE SCHOOL DISTRICT
LINCOLN HIGH SCHOOL MODERNIZATION PROJECT
BID RESULT
RFP NO. 03666
Contractor Name
BID OPENING DATE: 05/18/16
11:00 AM
BN Builders
Lydig
Skanska
Addenda 1 through 5 Acknowledged
yes
yes
yes
Bid Bond Provided (yes/no)
yes
yes
yes
Preliminary MACC
Preliminary MACC
Contractor's Contingency
Negotiated Support Services
Specified General Conditions (Bid)
Fee (% of MACC)
$50,770,700
$50,770,000
$2,538,535
$300,000
$1,694,617
$2,792,350
$50,770,700
$50,770,000
$2,538,535
$300,000
$1,002,235
$2,138,980
$50,770,700
$50,770,000
$2,538,535
$300,000
$2,383,598
$2,538,500
Preliminary Guaranteed Maximum Price
Preliminary Guaranteed Maximum Price
$58,096,202
$58,095,502
$56,750,450
$56,749,750
$58,531,333
$58,530,633
Bid Fee Percentage
5.50%
Negotiated Support Services
Specified General Conditions
Fee
Total Bid Amount
Low Conforming Priced Proposal
$300,000
$1,694,617
$2,792,350
$4,786,967
-
3.99%
$300,000
$1,002,235
$2,138,980
$3,441,215
low
5.00%
$300,000
$2,383,598
$2,538,500
$5,222,098
-
Points
68.27
75.00
66.10
Non Priced Points (max 25)
24.00
25.00
20.00
92.27
100.00
86.10
Total Points
Apparent Winner
Bid Tab 160601 Board Intro; Bid Results
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Lydig
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