Title
Engineering Proposal Development, Design, Procurement and Construction Services (EPC Services) in Support of Gainesville Greens and University Corners Chilled Water Facilities (B)
Staff recommends approval of the final ranking of the engineering firms and authorization to negotiate a contract in accordance with the Consultants' Competitive Negotiations Act (CCNA) for EPC services for the proposed Gainesville Greens and University Corners chilled water facilities.
Explanation
Gainesville Greens and University Corners are two large mixed use complexes currently under development in Gainesville. Staff has had discussions with both developers regarding GRU installing central chiller facilities within each of the developments. Chilled water systems are the most energy efficient means of space cooling. The installation of chilled water cooling systems by developers has historically been hindered by the higher capital cost, the higher level of technical sophistication for operation and maintenance, and cost allocation (billing) for chilled water systems.
Staff recommends entering into a contract for each project with an EPC firm for Phase 1 services, which would include preliminary design sufficient to develop cost estimates for several alternatives, and support pricing strategies for final contract negotiations. Staff would seek commission approval to extend contracts with the same EPC firm for work for additional phases for detailed design, construction, and operation and maintenance support. The combined budget for these projects is projected to be less than $12 million which would be recovered through charges for services to the developments. Staff would not proceed unless the rate of return meets GRU's minimum rate of return criteria, and the project had neutral or positive cost benefit to electric system rate payers.
Utilities Purchasing issued a Request for Qualifications (RFQ) for Engineering Design and EPC Services for Proposed Shands Central Utility Plant to known EPC firms and posted the solicitation on Purchasing's website which is monitored by several bid reporting services. Five firms submitted Statements of Qualifications (SOQ), which were ranked after evaluation of the submittals and shortlisted to three firms. Discussions with the three shortlisted firms were held in accordance with the criteria established in the RFQ and the Competitive Consultants Negotiations Act (CCNA).
The three firms are listed below in the order of ranking and a tabulation of the evaluation is attached for your reference: 1) Burns & McDonnell; 2) Stanley Consultants, Inc.; and 3) Siemens Building Technologies
In accordance with the CCNA, staff is recommending initiating contract negotiations with the top ranked firm. Burns and McDonnell demonstrated superior experience in the engineering, procurement and construction of chilled water plants, some of which incorporate Demand Side Management (DSM). GRU's ownership of these facilities could have a positive impact on the adoption of DSM at similar projects under development.
If staff is unable to negotiate acceptable contracts with the top ranked firm, it may initiate negotiations with the other firms in sequential order.
Recommendations
The City Commission: 1) approve the final ranking of the EPC firms; 2) authorize the Interim General Manager for Utilities, or her designee, to negotiate contracts in accordance with the Consultants' Competitive Negotiations Act (CCNA) for EPC Services for the proposed Gainesville Greens and University Corners chilled water facilities; 3) authorize the Interim General Manager or her designee, upon successful negotiations, to execute a contract subject to approval of the City Attorney as to form and legality, in an amount not to exceed $100,000 for Phase 1 Services for Gainesville Greens, and 4) authorize the Interim General Manager or her designee, upon successful negotiations, to execute a contract subject to approval of the City Attorney as to form and legality, in an amount not to exceed $100,000 for Phase 1 Services for University Corners.
Fiscal Note
The anticipated cost of engineering services for project development is expected to be less than $100,000 for each of these projects.
The project budget is projected to be less than $12 million which would be recovered through charges for services provided to the developments. Staff would not recommend final Commission approval of this project unless the rates of return for each project meets GRU's minimum rate of return criteria, and the projects had neutral or positive cost benefit to electric system rate payers.
Drafter
Prepared by: George K. Allen, Assistant General Manager for Energy Supply
Submitted by: Karen Johnson, Interim General Manager