DATE: October 8, 2024
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Authorize Design-Build Method of Procurement for Project Number 24-DB-02, County of Fresno Clovis Regional and Reedley Libraries
RECOMMENDED ACTION(S):
TITLE
1. Receive verbal presentation and Attachment A to this item from the Department of Public Works and Planning (“Department”) concerning the County of Fresno Clovis Regional and Reedley Libraries that will, based on the County’s design-build procurement method, using a “best value” basis (“Design-Build Method”), recommend to the Board of Supervisors (“Board”) (A) Harris Construction Co., Inc., SOLPAC Construction, Inc. dba Soltek Pacific Construction Company, and Zumwalt Construction, Inc., as the shortlisted Design-Build Entity proposers (collectively, “Shortlisted Proposers”), (B) the ranking of the Shortlisted Proposers, and (C) one of the Shortlisted Proposers as the highest-ranked Design-Build Entity (“Highest Ranked Design-Build Entity”) to construct both such libraries as a single project, but at different locations, under Design-Build Agreement for Project Number 24-DB-02 County of Fresno Clovis Regional and Reedley Libraires (“Design-Build Agreement Number 24-DB-02”) (current, recommended aggregate budget of $37,000,000, based on $24,000,000 for the Clovis Regional Library, and $13,000,000 for the Reedley Library);
2. Rank the Shortlisted Proposers, and identify one of the Shortlisted Proposers as the Highest Ranked Design-Build Entity, based on the Design-Build Method;
3. Authorize the Director of Public Works and Planning (“Director”) to negotiate for the Design-Build Agreement Number 24-DB-02 with the Highest-Ranked Design-Build Entity, using the draft form of the Design-Build Agreement Number 24-DB-02 on file with the Department’s Design Division, provided to the shortlisted Design-Build Entity proposers as part of the Design-Build Method, including any or all of the following that the Director determines to be in the best interest of the County under the Design-Build Method: (A) any revisions to such draft form of agreement; (B) any revisions to the Highest-Ranked Design-Build Entity’s proposal; and (C) any changes to the estimated aggregate budget; and
4. Authorize the Director to return to the Board on December 17, 2024 either with (a) the proposed, final Design-Build Agreement Number 24-DB-02 with the Board’s Highest-Ranked Design-Build Entity, for the Board’s requested award of such agreement to such entity, and public announcement of such award and the basis of such award at such time, or (b) a recommendation for the Board to authorize the Director to negotiate for the Design-Build Agreement Number 24-DB-02 with the Board’s next, highest ranked Design-Build Entity among the Shortlisted Proposers, using the same procedures in recommended action number 3, but based on the Board’s deadline to be specified.
REPORT
This item pertains to a capital project consisting of the construction of two new County libraries. One library will be constructed in Clovis and the other will be constructed in Reedley. Both libraries will be constructed as a single project, but at different locations, under the County’s design-build procurement method on a “best value” basis (“Design-Build Method”).
Your Board’s approval of the first recommended action is to receive a verbal presentation and Attachment A to this item from the Department of Public Works and Planning (“Department”) that will recommend to your Board: (A) Harris Construction Co., Inc., SOLPAC Construction, Inc. dba Soltek Pacific Construction Company, and Zumwalt Construction, Inc., as the shortlisted Design-Build Entity proposers (collectively, “Shortlisted Proposers”); (B) The ranking of the Shortlisted Proposers; and (C) one of the Shortlisted Proposers as the highest-ranked Design-Build Entity (“Highest Ranked Design-Build Entity”) to construct both such libraries as a single project, but at different locations, under Design-Build Agreement Number 24-DB-02.
Your Board’s approval of the second recommended action will rank the Shortlisted Proposers and identify one of the Shortlisted Proposers as the Highest Ranked Design-Build Entity, based on the Design-Build Method.
Your Board’s approval of the third recommended action will authorize the Director of Public Works and Planning (“Director”) to negotiate for the Design-Build Agreement Number 24-DB-02 with the Highest-Ranked Design-Build Entity, including any or all of the following that the Director determines to be in the best interest of the County under the Design-Build Method: (A) any revisions to such draft form of agreement; (B) any revisions to the Highest-Ranked Design-Build Entity’s proposal; and (C) any changes to the estimated aggregate budget.
Your Board’s approval of the fourth recommended action will authorize the Director to return to your Board on December 17, 2024 either with (a) the proposed, final Design-Build Agreement Number 24-DB-02 with your Board’s Highest-Ranked Design-Build Entity, for your Board’s requested award of such agreement to such entity, and public announcement of such award and the basis of such award at such time, or (b) a recommendation for your Board to authorize the Director to negotiate for the Design-Build Agreement Number 24-DB-02 with your Board’s next, highest ranked Design-Build Entity among the Shortlisted Proposers, using the same procedures in the third recommended action, but based on your Board’s deadline to be specified.
This item pertains to locations in Districts 4 and 5.
ALTERNATIVE ACTION(S):
Your Board may terminate the use of the Design-Build Method for this project and direct the Department to instead restart the Design-Build Method for these two libraries as separate design-build projects, or otherwise develop them as a single or separate projects under the design-bid-build process. If the recommended actions are not approved at this time, the combined single project, as recommended, will be delayed, as applicable.
FISCAL IMPACT:
The Department presently estimates that there will be no Net County Costs associated with the recommended action. The current, adopted aggregate budget for the combined project is $37,000,000. This is composed of the following:
• The Clovis Regional Library project's estimated cost includes construction of $24,000,000 and design, including architectural and engineering costs of $1,000,000.
• The Reedley Library project’s anticipated estimated cost includes construction of $13,000,000 and design, including architectural and engineering costs of $825,000.
However, if the actual total costs to complete these projects exceed the current, recommended aggregate budget of $37,000,000, the Fresno County Library (Library) will request approval from your Board to increase appropriations and revenues to complete the projects. An Operating Transfer-In from the Library Special Revenue Measure B Sales Tax Fund Org 7530 will fund the costs associated with both projects. Appropriations and estimated revenues are included in the Department of Public Works and Planning - Capital Projects Org 8863 and Org 8865 FY 2024-25 Adopted Budget.
DISCUSSION:
Design-Build Method - Overview
Public Contract Code section 22160, et seq., allows local agencies, such as the County, to utilize the Design-Build Method for certain projects, such as buildings, in excess of one million dollars ($1,000,000). This means that the proposed project is eligible for the Design-Build Method.
Under the Design-Build Method, the County contracts with a successful Design-Build Entity to both design and construct a project. The method of your Board’s final selection can be either by “low bid” or “best value,” depending on the nature of the project.
On February 28, 2023, your Board authorized and adopted the Design-Build Method. Specifically, pursuant to Public Contract Code section 22162, your Board authorized the Department to procure design-build contracts for Public Works projects in excess of one million dollars ($1,000,000), awarding the contract based upon either the “low bid” or “best value,” excluding any projects on the state highway system. At that time, your Board also adopted an organizational conflict of interest (COI) policy and standard template request for statements of qualifications (RFQ) requiring certain qualification information from prospective Design-Build Entities, in compliance with the California Public Contract Code.
The Design-Build Method differs significantly from the traditional design-bid-build method in which design and construction firms are procured separately, with design consultant agreements being awarded on a qualifications-based Request for Qualifications (RFQ process), and the construction contract being bid out and awarded under a low-bid Request for Proposals (RFP) process. It is anticipated that utilizing the Design-Build Method for certain eligible projects, such as the proposed project in this item, will expedite project delivery timetables and potentially reduce overall costs.
The main procedural statute for design-build contracts is Public Contract Code section 22164, the key steps of which are summarized here:
1. County prepares documents setting forth the scope and estimated price of the project;
2. First phase: County prepares and issues to the public a request for qualifications (“RFQ”) to prequalify or short-list those Design-Build Entities whose proposals will be considered;
a. The County-appointed Selection Committee determines those Design-Build Entities to be short-listed for a subsequent final competitive selection process among them (see second phase, below); and
b. Those short-listed Design-Build Entities must commit to use a “skilled and trained workforce.”
3. Second phase: Based on the documents prepared by the County in step 1, above, County prepares a request for proposals (“RFP”) inviting only the short-listed Design-Build Entities to submit competitive sealed proposals;
a. County may select using either the “best value” standard or the “lowest bid” standard. Under the “best value” standard, which is proposed in this item (as opposed to the “lowest bid” standard), criteria and weight assigned to each factor must be specifically defined in the RFP, which the County has done for this item.
b. County may hold discussions or negotiations with the short-listed Design-Build Entities according to the process in the RFP; and
c. County evaluates the proposals from the short-listed Design-Build Entities using the criteria identified in the RFP;
d. County ranks the short-listed Design-Build Entities based on a determination of value provided.
4. County makes a public announcement identifying the final rankings of the short-listed Design-Build Entities using a “best value” standard, along with a statement explaining the basis of this determination.
5. County, through your Board, awards to the one Design-Build Entity determined to have offered the “best value.”
California Public Contract Code section 22166 further provides that once the Design-Build Entity is selected and the contract is awarded-here, the Highest Ranked Design-Build Entity, then the Highest Ranked Design-Build Entity is required to advertise for any additional subcontractors beyond those listed in its proposal. Any additional subcontractors not listed in the Highest Ranked Design-Build Entity’s design-build package would need to be bid competitively by the Highest Ranked Design-Build Entity.
The Design-Build Method for the Clovis Regional and Reedley Libraries
The Department recommends that one library in Clovis and one library in Reedley will be constructed as a single project under the Design-Build Method.
• The Clovis Regional Library will be a new 26,270 sq. ft. single-story library building located at 755 3rd Street, Clovis, CA 93612.
• The Reedley Library will be a new 14,000 sq. ft. single story library building located at 1813 11th Street, Reedley, CA 93654.
Both libraries will provide a variety of rooms that the public can access, such as multiuse community rooms, study rooms, and dedicated children and teen areas.
Current Procurement Status
The first phase:
On April 18, 2024, the Department advertised and distributed to contractors RFQ #: PWP24-015 (the “RFQ”) for the Clovis Regional and Reedley Libraries. The deadline for the RFQ Prequalification Questionnaires was May 16, 2024. Prequalification Questionnaires were timely received by the Department from the following nine responding Design-Build Entities:
• AMG & Associates, Inc.
• Brown Construction, Inc.
• F&H Construction
• Harris Construction Co., Inc.
• Quiring General, LLC
• Roebbelen Contracting, Inc.
• SOLPAC Construction, Inc. dba Soltek Pacific Construction Company
• Swinerton
• Zumwalt Construction, Inc.
Members of the Selection Committee were appointed by the Director of the Public Works and Planning on June 23, 2023. The Prequalification Questionnaires were evaluated by the Selection Committee according to the RFQ Prequalification Procedure. The Selection Committee is comprised of representatives from the Department’s Capital Projects Division, the County Administrative Office, and the Library. This included the Selection Committee scoring each of the responding Design-Build Entities’ answers in response to RFQ questions, as well as reviewing their financial statements, reference checks on past projects, and evaluating their past performance, per the RFQ process.
After the Selection Committee’s evaluation of the RFQ Questionnaires, it approved the following three ranked Design-Build Entities as shortlisted proposers, and on June 6, 2024, invited them to submit proposals in the RFP phase in accordance with California Public Contract Code section 22164(f)(3):
• Harris Construction Co., Inc.
• Roebbelen Contracting, Inc.
• Zumwalt Construction, Inc.
The second phase:
On June 12, 2024, the Department solicited final proposals from those highest three ranked Design-Build Entities referred to as shortlisted proposers through the issuance of an RFP.
On June 21, 2024, one Design-Build Entity, Roebbelen Contracting, Inc., withdrew from the process. The next ranked Design-Build Entity, SOLPAC Construction, Inc. dba Soltek Pacific Construction Company, was added to the shortlist and invited to submit a proposal. All three firms submitted draft proposals which were received on August 30, 2024, presented their proposals to the Selection Committee on September 6, 2024, and final proposals were received from all three firms on September 13, 2024.
During the month of September, the Selection Committee evaluated the Shortlisted Proposers’ proposals. On September 27, 2024, the Selection Committee completed its evaluation of the Shortlisted Proposers’ proposals, and prepared recommended actions for your Board, as discussed below.
The recommended actions:
Your Board’s approval of the first recommended action is to receive a verbal presentation and Attachment A to this item from the Department of Public Works and Planning (“Department”) that will recommend to your Board: (A) Harris Construction Co., Inc., SOLPAC Construction, Inc. dba Soltek Pacific Construction Company, and Zumwalt Construction, Inc., as the shortlisted Design-Build Entity proposers (collectively, “Shortlisted Proposers”); (B) The ranking of the Shortlisted Proposers; and (C) one of the Shortlisted Proposers as the highest-ranked Design-Build Entity (“Highest Ranked Design-Build Entity”) to construct both such libraries as a single project, but at different locations, under Design-Build Agreement Number 24-DB-02 (current recommended aggregate budget of $37,000,000 based on $24,000,000 for the Clovis Regional Library and $13,000,000 for the Reedley Library).
Your Board’s approval of the second recommended action will rank the Shortlisted Proposers and identify one of the Shortlisted Proposers as the Highest Ranked Design-Build Entity, based on the Design-Build Method.
Your Board’s approval of the third recommended action will authorize the Director to negotiate for the Design-Build Agreement Number 24-DB-02 with the Highest-Ranked Design-Build Entity, including any or all of the following that the Director determines to be in the best interest of the County under the Design-Build Method: (A) any revisions to such draft form of agreement; (B) any revisions to the Highest-Ranked Design-Build Entity’s proposal; and (C) any changes to the estimated aggregate budget.
Your Board’s approval of the fourth recommended action will authorize the Director to return to your Board on December 17, 2024 either with (a) the proposed, final Design-Build Agreement Number 24-DB-02 with your Board’s Highest-Ranked Design-Build Entity, for your Board’s requested award of such agreement to such entity, and public announcement of such award and the basis of such award at such time, or (b) a recommendation for your Board to authorize the Director to negotiate for the Design-Build Agreement Number 24-DB-02 with your Board’s next, highest ranked Design-Build Entity among the Shortlisted Proposers, using the same procedures in the third recommended action, but based on your Board’s deadline to be specified.
The draft form of the Design-Build Agreement Number 24-DB-02 on file with the Department’s Design Division consists of the following documents:
• Design-Build Proposal Form
This document serves the purpose of signing the proposal on behalf of the identified firm.
• Subcontractors List
This document serves the purpose of identifying subcontractors who will work with the Design-Build Entity to perform the work of the project.
• Notice of Award
This document announces the awardee and is typically used by the awardee to procure performance bonds and insurance.
• Design-Build Agreement (template)
This document is the contract itself, to be signed by both parties (the awardee and the County).
• Bridging Documents
This document contains the scope and preliminary draft designs for the libraries.
• Notice to Proceed with Construction
This document would be issued to authorize the awardee to begin construction of the libraries.
• Notice to Proceed with Design Services
This document would be issued to authorize the awardee to begin designing the libraries.
• Construction Performance Bond
This document would be provided by the awardee, demonstrating their financial bond for the work.
• Construction Labor and Material Payment Bond
This document would be provided by the awardee, demonstrating their financial bond for the work.
• Substitution Request Form
This document is provided for the awardee’s use, when requesting that the County authorize a substitution in materials during the design and construction.
• Agreement and Release of Any and All Claims
This document would be issued to the awardee upon completion of all work and would be used by the awardee to release their bonds.
• Guaranty
This document is provided by the awardee to guaranty the quality of their work.
• General Conditions
This document details the conditions and provisions of the standard design-build contract in detail.
• Supplementary Conditions - Insurance and Indemnification
This document details conditions and provisions of this specific project pertaining to required insurance amounts.
• Addenda
This document identifies changes to any of the RFQ, RFP, and contract documents issued by the County during the procurement process.
• Design-Build Entity’s Proposal for County of Fresno
This is the negotiated proposal by the awardee.
• Final Construction Documents
These documents documenting the construction would form part of the project documents and would be generated by the Design-Build Entity and the County.
Some key terms that the Director will need to negotiate with the Highest Ranked Design-Build Entity will be:
• Alternatives that may be part of the work;
• Incorporating any provisions from other short-listed Design-Build Entities into the Highest Ranked Design-Build Entity final scope of work
o But the County will first need to enter into the “Stipend Agreement,” discussed below, so that the other Short-Listed Design-Build Entities agree to transfer ownership of their respective proposal’s intellectual property to the County;
• Price for completion of all the work for each library;
• Amount of liquidated damages;
• Commencement date for each day that the work is not completed;
• Completion date for the work;
• Design and construction milestones;
• County’s bridging documents (discussed below).
If your Board approves the recommended actions, and if the Department is able to return to your Board with a recommended Design-Build Agreement Number 24-DB-02 with the Highest Ranked Design-Build Entity, on December 17, 2024, then construction for both libraries is presently expected to commence in Spring 2025 with Reedley expected to be completed in Spring 2026 and Clovis expected to be completed in Fall 2026.
Conflict of Interest compliance
Each member of the Selection Committee, as well as County financial advisors who provided financial analysis of the proposed firms’ financial statements, completed a conflict of interest form upon receipt of the initial RFQ Prequalification Questionnaires. The conflict of interest forms identified the firms, their owners, and key employees of the Design-Build Entities. These forms were reviewed and approved by County procurement staff as no conflicts were identified.
Stipend Agreements:
There will be a stipend of $40,000 paid to the top two ranked shortlisted Design-Build entity proposers who are not ultimately selected for award of the project, provided that they agree to transfer ownership of their respective proposal’s intellectual property to the County, so that concepts included in their proposals may be utilized in the design and construction of the project by the awarded Design-Build Entity. That amount is established by your Board’s Resolution No. 23-053, adopted on February 28, 2023, which authorized the Director to execute such agreements.
Bridging documents:
The County developed the “bridging documents” with in-house architects or engineers who are employees of the County with the assistance of private architectural and/or engineering firms.
The purpose of the “bridging documents” is to provide the scope of work and any preliminary plan drawings and technical requirements of the projects. Proposals are based on the specific details and general guidance provided in the “bridging documents” and proposed alternates would attempt to design improvements which would provide better value to the County than the designs presented in these documents. These documents are not official construction drawings that have been stamped and signed by an architect, which would be created by the awardee during the design phase of the project.
The “bridging documents” were approved by Library Staff with input from the Friends of the Library and the cities of Reedley and Clovis. A key component of the bridging documents is the exterior elevations of each library.
The firms listed below assisted with the preparation of the “bridging documents” and are not eligible to provide design services to the Design-Build Entity:
Clovis Library:
• Kleinfelder, Inc., Environmental Peer Review.
Reedley Library:
• Moore Twining and Associates, Geotechnical Investigation and Report.
OTHER REVIEWING AGENCIES:
The City of Clovis and the City of Reedley determined the location of the libraries in their respective cities and were involved in the development of the preliminary drawings and scope of the design. However, the Cities have had no involvement in the selection of the Design-Build Entity.
REFERENCE MATERIAL:
BAI #9, February 28, 2023
ATTACHMENTS INCLUDED AND/OR ON FILE:
Attachment A - Memorandum from Steven E. White
Clovis Regional Library Location Map
Reedley Library Location Map
CAO ANALYST:
Salvador Espino