TRANSMITTAL DATE PROPOSED ON-CALL CONSTRUCTION MANAGEMENT SERVICES AWARD OF CONTRACTS WITH AECOM, BERG & ASSOC., CH2M HILL, IEM AND SIMPLUS

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1 TO Eugene D. Seroka, Executive Director Harbor Department FROM The Mayor TRANSMITTAL DATE AR ! COUNCIL FILE NO. COUNCIL DISTRICT 15 PROPOSED ON-CALL CONSTRUCTION MANAGEMENT SERVICES AWARD OF CONTRACTS WITH AECOM, BERG & ASSOC., CH2M HILL, IEM AND SIMPLUS Transmitted for further processing and Council consideration. See the City Administrative Officer report attached. MAS:ABN: t CAO 64 9-d

2 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: March 5, 2015 CAO File No Council File No. Council District: 15 To: The Mayor \.. Y. {;. From: Miguel A. Santana, City Administrative Officer p Reference: Subject: Correspondence from the Harbor Department dated February 11, 2015; referred by the Mayor for report February 13, 2015 PROPOSED ON-CALL CONSTRUCTION MANAGEMENT SERVICES AWARD OF CONTRACTS WITH AECOM, BERG & ASSOC., CH2M HILL, IEM AND SIMPLUS SUMMARY The Harbor Department (Port) Board of Harbor Commissioners (Board) requests approval of Resolution No to authorize five proposed Agreements for on-call construction management services with the following consultants: Aecom Technical Services, Inc. (Aecom); Berg & Associates, Inc. (Berg & Assoc.); CH2M Hill Engineers, Inc. (CH2M Hill); Integrated Engineering Management (IEM); and, Simplus Management Corp. (Simplus). The on-call construction management consultant services will provide professional, expert and technical services and support to the Port's Construction Division staff and its Capital Improvement Program (CIP). The CIP currently has more than $1 billion dollars in construction projects planned over the next five years. The proposed five Agreements will begin upon the date of execution by the Port Executive Director and remain in effect for up to a five-year term or the 2020 calendar year. In accordance with Charter Section 3 73, Council approval is required because the term of the proposed Agreements will exceed three years. Compensation for each proposed Agreement is for a maximum amount of up to $2 million, for a total amount of up to $10 million, pursuant to the graph below: Fiscal Year CONTRACTOR I COMPENSATON AMOUNT AECOM Berg & Assoc. CH2M Hill IEM SIMPLUS /2015 $200,000 $200,000 $200,000 $200,000 $200, /2016 $400,000 $400,000 $400,000 $400,000 $400, /2017 $400,000 $400,000 $400,000 $400,000 $400, /2018 $400,000 $400,000 $400,000 $400,000 $400, /2019 $400,000 $400,000 $400,000 $400,000 $400, /2020 $200,000 $200,000 $200,000 $200,000 $200,000 TOTAL $2,000,000 ~2,000,000 $2,000,000 $2,000,000 $2,000,000...,, Each Agreement includes a list of approved hourly charges for the services provided. The Agreements may be terminated by the Port subject to the contractual provisions. According to the Port, all the terms and conditions are similar among all the Agreements.

3 BACKGROUND The Port released a Request for Qualifications (RFQ) to select the consultants based on their experience, qualifications and expertise. The proposed consultant services will assist the Port's Construction staff, on an as-needed basis. The Port advertised the RFQ on its Departmental website and other media outlets. The proposals were reviewed by staff from the City's Port of Los Angeles (POLA) and Public Works Department. The Port received 34 Statement of Qualifications (SOQ) proposals. The Port evaluated the proposals based on categories relating to the project scope of work, which included: project management and coordination; project personnel and subcontractors; experience with marine, building, civil and landscape construction; understanding of local community and tenant concerns; cost estimates and labor rates; and ability to complete the work within the Port's project schedules. The Port selection committee ranked the SOQs based on their qualifications and selected 13 firms to submit Request for Proposals (RFP) and deliver an oral presentation for the construction management services. The Port selected AECOM, Berg & Assoc., CH2M Hill, Simplus and IEM as the most qualified firms for this contract. According to the Port, all the firms except IEM are entering agreements for the first time to provide on-call construction management services. The proposed five consulting firms have offices that are based within Southern California. DISCUSSION The Port states that the on-call construction services contracts will provide the PO LA's Construction Division with additional personnel and capabilities to complete construction projects when City staff or expertise is not available. The projects assigned to consultants will vary in scope and may require specialized services. The size and number of projects will be determined by the needs of the Construction Division. The consultants will be selected to perform on one or more of the CIP projects through an internal departmental bid process to assist and work with the Port's Construction Division staff on the following tasks: construction management operations and review; scheduling; cost estimating; document control; coordination with other stakeholders; preparing reports; and, assisting with monitoring compliance and environmental requirements. The Port Executive Director will have authority to approve work and adjust the annual budget amounts based on the scope of work, maximum costs, schedule, terms of payment, deliverables, work site, personnel or subcontractors and other miscellaneous activities. Each consultant's compensation amount cannot exceed $2 million over a five-year period. The proposed Agreements will allow the contractors sufficient authority to recommend design support services during construction for the various projects. The Port is requesting the proposed five consulting firms to assist and augment staff in carrying out scheduled projects for wharf and backland improvements, construction of new buildings, improvements to the Port's waterfront areas, and landscaping. The Port will use the consulting ftrms to provide on-call construction management services to assist in developing and implementing the scope of work and schedules for a variety of projects in its CIP at peaks in workload and to assist and support staff. This will include all elements of pre- and post-construction services such as project review, coordination, inspection, quality control and safety, close-out administration, and monitoring of project labor agreements requirements.

4 During the future five-year period for CIP projects, the Port estimates that it will complete approximately $1.0 billion in construction and maintenance projects. The Port has budgeted approximately $1.0 million for the current fiscal year for the five proposed agreements. According to the Port, spending under the proposed Agreements will support 73 direct and 68 secondary one-year equivalent jobs for the five-county region. CITY COMPLIANCE ISSUES The proposed five Agreements have been reviewed and approved by the City Attorney as to form. The proposed Agreements are in compliance with all applicable provisions of City Ordinances and contracting requirements. The proposed Agreements are subject to the Living Wage, Service Workers Retention, Equal Benefits, Affirmative Action and Minority, Women, and Other Business Enterprises compliances. According to the Port, the proposed Agreements will require a 25 percent Small Business Enterprise (SBE) participation. Berg & Assoc., IEM and Simplus are SBE firms. AECOM and CH2M Hill have committed to meet or exceed the 25 percent SBE participation requirement. The Port will require each of the consulting firms to submit a monthly report to confirm their level of compliance with this goal. The Port states that it prepared a Charter Section 1022 determination and concluded that the work could be performed more economically and feasibly by the independent contractors instead of City employees because of the expertise required, temporary nature and the on-call or as needed basis of the work. The Port also would have to allow time requirements to train City staff to meet the temporary and as-needed workload requirements to assist the Port's construction staff. The Port Director of Environmental Management has determined that the proposed Agreements are administrative activities and therefore exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(f) of the Los Angeles City CEQA Guidelines. However, the proposed Agreements do not include approvals of environmental analysis for all of the CIP projects and, subsequently, specific projects may be subject to individual environmental review in accordance with CEQA. RECOMMENDATION That the Mayor: 1. Approve Harbor Department (Port) Board of Harbor Commissioners Resolution No to authorize five proposed Agreements for on-call construction management services with the following consultants: Aecom Technical Services, Inc.; Berg & Associates, Inc.; CH2M Hill Engineers, Inc.; Integrated Engineering Management; and, Simplus Management Corp. The oncall construction management consultants will provide professional, expert and technical services and support to the Port's Construction Division staff and its Capital Improvement Program (CIP). The proposed Agreements will begin upon the date of execution by the Port Executive Director and remain in effect up to a term of five years, at a maximum amount of $2 million for each Agreement, for a total compensation not to exceed $10 million; and, 2. Return the documents to the Port for further processing, including Council consideration.

5 FISCAL IMPACT STATEMENT The proposed five Agreements for on-call construction management services will include compensation amounts not to exceed $2 million for each contract for a total amount of $10 million during the next five years. The Port has budgeted $1.0 million for the fiscal year. There is no impact on the City General Fund and funding for the six Agreements will be included in the Harbor Revenue Fund. TIME LIMIT FOR COUNCIL ACTION Pursuant to Charter Section 373, "Long Term Contracts Approved by Council," the proposed Agreements must be approved by the Council before they become effective. Unless the Council takes action by disapproving a contract that is longer than three years within 60 days after submission to Council, the contract will be deemed approved. MAS:ABN: