Council approves Kiewit preconstruction services for wastewater plant project; $3.24 million preconstruction phase, construction expected to follow

Sioux City Council approved a resolution authorizing a construction‑manager‑at‑risk (CMAR) preconstruction services contract with Kiewit for phase 1 of the wastewater treatment plant facilities and plan improvements.

Utilities Director Tom Pingle told the council the city issued an RFQ and RFP process, shortlisted firms and negotiated a preconstruction contract with Kiewit after scoring showed Kiewit as the top firm. Pingle said the preconstruction services budget is a time‑and‑materials “not to exceed” amount and that the next step will be a guaranteed maximum price (GMP) that Kiewit will present after design reaches about 90 percent.

Council members asked detailed questions about Kiewit’s ability to self‑perform work, retainage, schedule and procurement risks. Tom Pingle and Kiewit’s project manager, Travis Baumgartner, explained that Kiewit may bid on packages like other contractors, but the city will compare prices and may award to another bidder if lower. The preconstruction phase was described as the period when Kiewit’s subject‑matter experts will work with design teams on constructability, material choices and bottoms‑up cost estimates; early procurement packages for long‑lead items (for example, key electrical gear) are an option if vendors report long lead times.

During the discussion Pingle said the contract would fund preconstruction services of roughly $3,237,403.65 (time and materials, not to exceed) and that the construction phase could be in the hundreds of millions; council discussion referenced a planning‑stage estimate of roughly $275 million and a CMAR fee in the neighborhood of 9.55 percent of construction cost. Pingle said preconstruction services will conclude late this year, construction would begin in 2026, and substantial completion is anticipated in December 2030.

Committee members also asked about federal requirements: staff said phase 1 has a Buy America waiver because it began before new requirements took effect, while subsequent phases may include Buy America and Davis‑Bacon wage requirements. The contract sets retainage at 5 percent. Council members expressed interest in the project’s cost model and vendors’ procurement timelines; Kiewit said it will supply a narrative with schedule, pricing and procurement risk details in the cost model.

The council voted to approve the preconstruction services contract after an amendment correcting a contractor address. The contract passed on recorded roll call votes with councilmembers voting in favor.