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Commission approves amended funding for WESIP professional services after extended debate over oversight and procurement
Summary
The commission approved Amendment No. 1 to the Parsons professional-services contract for preconstruction management of the Water System Improvement Program (WESIP) after debating whether to accept the Board of Supervisors' reduced amendment amount ($7M versus $19M requested), concerns over contract spend monitoring, and how to preserve program-management continuity while enabling future competition.
The San Francisco Public Utilities Commission on March 11 approved an amendment to the Parsons Water and Infrastructure, Inc. professional-services contract for preconstruction management of the Water System Improvement Program (WESIP) after extended discussion about contract overspend reporting, procurement fairness and program continuity.
Staff explained that an earlier request for a $19 million amendment had been presented to the Board of Supervisors; in subsequent meetings the Board asked for a competitive process and the full Board ultimately approved a smaller amount to allow staff to proceed. Harlan Kelly and other staff recounted a timeline of rescoping and contract changes and said that Parsons had provided important program-management continuity during design and early-stage work. Commissioners repeatedly criticized the late notice on accelerated spend-down rates and urged the contracts office to produce regular variance reports for professional-services spending so the commission would be alerted earlier.
Key concerns raised included:
- Why the commission was notified so late about accelerated spend-down on the contract and how to prevent similar last-minute shortages in the future; commissioners asked staff to provide quarterly reporting or a variance report on professional-services contract spend-downs. - How to balance retaining a program manager that provides continuity against preserving competition and fair procurement for successor contracts; commissioners asked the city attorney's office to clarify whether prior performance would preclude bidders and discussed RFP design to allow continuity while enabling competitive selection. - Whether awarding continuing work to the incumbent would reduce competition or drive up rates on future amendments.
Staff and commissioners sought options: accept the Board's current $7 million amendment to avoid halting program activity, while maintaining the commission's position that $19 million was the appropriate level and continuing to press the Board of Supervisors on the issue. Commissioners also requested that future RFPs be reviewed by the commission before issuance and that staff return with a simplified reporting approach for professional-services contract variances.
Outcome: commissioners moved and passed the amendment (recorded as approved in the meeting); staff committed to bring improved contract-variance reporting and to consult with the city attorney about RFP language that preserves continuity where appropriate without foreclosing competition.
