Committee approves purchase of 1600 Owen Street and waives competitive procurement for key lab contracts amid debate

The Budget & Finance Committee approved a package that would allow the city to execute an option agreement to acquire property at 1600 Owen Street for a new laboratory building for the Office of the Chief Medical Examiner and to use related design and construction documents. The legislation includes limited waivers of portions of the Administrative Code that govern competitive procurement for professional services and integrated project delivery.

Public Works and project staff told the committee the property and design work originated under a private redevelopment arrangement (Alexandria as owner/developer) that procured the architecture and preconstruction services (design firm 'Studios' and contractor DPR) prior to the city's direct involvement. Department staff argued that requiring full re-competition at this stage would force a new team to validate two years of preconstruction work, add delay and escalation costs, and impair project continuity: DPW estimated the procurement and schedule delay could take about nine months and translate into millions of dollars in additional escalation costs (department estimates ranged from roughly $3 million to $7.83 million depending on assumptions).

To limit risk, DPW said the large majority of construction (about $128 million) and trade packages would be competitively bid under city rules; the waiver would apply narrowly to the 70 percent of interior design and to selection of a construction manager/general contractor (CMGC) to retain schedule continuity. DPW also proposed capping the CMGC fee at roughly 8 percent of construction value through negotiation and to competitively source the remaining work.

Several supervisors pressed for narrowing the waiver and for carving out roughly $11.2 million of construction-management work for competitive procurement to create opportunities for local business enterprises (LBEs) and other local contractors. Budget office staff and the committee's analyst cautioned that only a full competitive process could determine whether bidders could offset delay costs; they said the department's delay-cost model is plausible but not provable without bids.

A roll-call vote recorded supervisors Ellsburn and Avalos as voting in favor and Supervisor Mercarini opposed; the clerk reported the motion carried in committee.

Why it matters: The measure lets the city step into a redevelopment package and proceed with a project for the medical examiner's laboratory while waiving some procurement steps. Supporters emphasized avoiding costly delays; critics warned the waiver reduces competitive opportunities and urged stronger safeguards and narrower scope.

What's next: The committee-approved ordinance and associated resolutions will go to the full Board for final action; any final contracts or delegated approvals must conform to the terms approved by the Board.