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SFPUC approves Parsons amendment and AECOM contract for WSIP, will seek Board waiver
Summary
Commissioners approved a $19 million amendment to Parsons' program/preconstruction contract and a new $26 million AECOM agreement for construction management, rejecting competing proposals for CS‑940 and preparing to request a Board of Supervisors waiver on procurement grounds.
The San Francisco Public Utilities Commission on Nov. 12 approved two related actions to secure program management services for the Water System Improvement Program (WSIP): (1) a proposed Amendment 2 to the Parsons program and preconstruction management agreement increasing authorized value by $19 million (bringing Parsons’ total to $64 million and extending time); and (2) award of a seven‑year, $26 million agreement to AECOM for program construction management services.
Julie Labonte explained the background: the commission had previously awarded a five‑year, $45 million contract to Parsons, subsequently adjusted by the Board of Supervisors; the PUC competitively solicited remaining program management services under CS‑940, receiving proposals that ranked Program Delivery Partners (a Parsons/AECOM joint team) highest. The City Attorney’s Office advised that awarding CS‑940 entirely to Parsons could raise a potential California Government Code Section 1090 conflict because Parsons participated in development work; staff therefore recommended a contracting approach that preserves competitive results while avoiding the conflict and maintaining program continuity.
Labonte said the recommended actions would allow continuity through construction transition, and staff asked the commission to reject the CS‑940 proposals and proceed with the Parsons amendment and the AECOM agreement. Commissioners asked about the likelihood of the Board of Supervisors granting a waiver of competitive procurement requirements; staff said they would submit the package to the board and that the earliest likely timeframe was two to three months.
Art Jensen of VOSCA commented in favor of continuity and urged caution on the waiver process. After discussion, the commission moved, seconded and approved both items by voice vote, directing staff to seek any required Board of Supervisors waivers and to advance contracting consistent with the PUC’s PEIR and program schedule.
The commission’s actions are intended to minimize interruptions to WSIP construction mobilization while addressing potential conflict‑of‑interest concerns referenced by city attorneys.
