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Committee approves Central Subway design contract with design‑to‑budget provisions
Summary
SFMTA asked the committee to approve a roughly $39.95M contract for final design and construction management of three Central Subway stations; the contract includes small‑business participation goals and design‑to‑budget language that requires redesign work if post‑bid estimates exceed 105% of construction budgets.
The Municipal Transportation Agency presented a contract (CS155‑2) to procure final design and construction management services for the Central Subway stations. Program manager John Fungi described the selection process and emphasized small‑business and minority/women participation: the recommended joint venture includes 31 professional firms with 25 local firms and a 36.5% small‑business participation target, exceeding the 30% goal.
The proposed consultant contract includes an explicit design‑to‑budget provision that requires independent cost estimates at key design milestones (65% and 100%); if construction bids exceed 105% of a package budget, the consultant must revise the design and assist with rebidding or negotiating at no additional fixed fee until the project falls within the 5% budget range.
Budget analyst Harvey Rose supported the selection process but cautioned that the design‑to‑budget provision reduces risk but does not guarantee bids will come in at or below the construction budget; he flagged the fixed fee portion as compensating the consultant for multiple risks (errors and omissions insurance, profit, design risk) and recommended the Board treat the contract as a policy decision when it involves budget guarantees. The committee adopted the technical and clerical corrections requested by SFMTA and moved the item to the full Board with recommendation.
