Committee OKs contracting authority to increase SFGH construction management services to $16.4M; city staff say budget covers change
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Summary
Supervisors accepted a contract-amendment request to raise construction-management contracting authority for the San Francisco General Hospital rebuild program from $8 million to $16.4 million to continue Jacobs' management role and cover added generator work; budget analyst flagged the 105% increase but recommended approval given program savings and continuity rationale.
The Budget and Finance Committee accepted a request to increase the contracting authority for construction management services supporting the San Francisco General Hospital rebuild to $16.4 million, a rise of $8.4 million from the previous $8 million limit. Project manager Ron Alameda told the committee the increase supports ongoing program delivery, additional oversight for the merged emergency-generator project and continued use of Jacobs Engineering, which the program team said has been integral to schedule, cost validation and LBE participation goals.
Alameda said the program is not asking for additional budgeted funds, but for contracting authority because the increase pushes the agreement above the $10 million threshold and requires committee approval. He stressed that the overall approved project budget is sufficient to absorb the contract increase and noted the team has achieved strong LBE participation (27% actual participation vs. 14% contractual goal).
Supervisors questioned whether the work should have been competitively rebid after scope expansion. Budget analyst staff acknowledged the 105% increase and noted the justification in a project memorandum describing “changed conditions,” including the emergency-generator work, and concluded that re-soliciting the additional work would be detrimental to schedule and that continuity with Jacobs was practical. The committee took the item forward with recommendation to the full board.
Next steps: The committee forwarded the proposed amendment with recommendation to the Board of Supervisors. Budget Analyst to provide additional background if requested.
