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Commission endorses CMGC procurement approach for $225M sewer project after commissioners add administrative safeguard

San Francisco Public Utilities Commission · July 14, 2015
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Summary

The Commission authorized RFQ/RFP for WW628 (estimated $225 million) using a CMGC approach and approved an amendment making award and administration subject to future administrative provisions the Commission may adopt to protect ratepayers.

The Commission authorized staff to issue a request for qualifications and subsequent request for proposals for agreement WW628, an estimated $225,000,000 Sewer System Improvement Program project, and endorsed use of a Construction Manager/General Contractor (CMGC) approach to bring a contractor on early in design.

Staff described CMGC as a procurement route that allows the owner to engage a contractor for constructability input during design while preserving competitive cost validation steps. Commissioner Moran pressed for an additional safeguard addressing Commission administrative procedures: he proposed, and the Commission adopted, language that makes the award and administration of any agreements entered pursuant to this authorization subject to administrative provisions the Commission may later approve for CMGC contracts, ensuring the contract would be administered in line with future Commission rules.

Earlier in the meeting, commissioners also discussed core contractors and the role of engineers' estimates in cost control, with staff explaining how prequalification and comparison to third-party estimates work under the new process. Commissioners requested historical data comparing engineers' estimates to low, high and winning bids as part of ongoing oversight.

The authorization and the amendment carried on voice votes. Staff noted they would continue outreach on contracting and return materials to the Commission documenting due diligence, prequalification, LBE considerations and engineer-estimate comparisons.