1_44A0146_RFQ_a11y_4-9-25.pdf

April 15, 2025 RFQ Number 44A0146

STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION

REQUEST FOR QUALIFICATIONS NOTICE

NUMBER 44A0146

Read carefully as the following revisions have been made to this document:

• On 03/07/25, GENERAL, Executive Order N-12-23 replaces Executive Order N-12-12. GenAI Reporting and Factsheet Form STD1000 is retired.

• On 01/31/25, GENERAL the Fee & Escalation table has been revised.

• On 07/25/24, GENERAL, Executive Order N-12-12 – Generative

Artificial Intelligence (GenAI) Technology Use and Reporting added.

Note: Questions concerning this Request for Qualifications (RFQ) must be submitted in writing to the attention of Vanessa Usanmaz at Vanessa.Usanmaz@dot.ca.gov. Questions must be received no later than seven (7) business days after the RFQ advertisement.

Consultants contacting the District or Division directly seeking information about this RFQ will be disqualified from consideration in the selection process.

Proposers are advised that Caltrans has established a federally mandated overall annual DBE goal comprising both race neutral and race conscious elements to ensure equal participation of DBE groups specified in 49 CFR 26.5. In compliance with 49 CFR 26, Caltrans set a contract goal for DBEs participating in this solicitation expressed as a percentage of the total dollar value of the resultant Agreement. The DBE participation goal for this solicitation is twenty-three percent (23%). See section I.H. in this RFQ for requirements.

I. GENERAL INFORMATION

A. Caltrans is soliciting Statements of Qualifications (SOQs) from qualified firms that may lead to the award of a contract for A&E On-Call Cost and Schedule Risk Assessment and Financial Plans, District 44. In submitting your SOQ, you shall comply with the instructions found herein. In addition to those programs that are specified in this solicitation, prospective consultants are encouraged to consider programs that are available, such as those for the use of small businesses, disadvantaged businesses, disabled veteran businesses, new emerging firms, and other businesses covered by State and Federal programs.

B. The estimated contract amount is $2,400,000 - $3,900,000

C. The estimated contract term is 3 years.

mailto:Vanessa.Usanmaz@dot.ca.gov

D. Interviews will be held via WebEx on June 3, 2025. Confirmation letters will be sent to those firms short-listed.

E. The most highly qualified consulting firm will be required to submit an electronic copy of the financial documents listed on the appropriate Financial Documents Submittal Checklist available on the AE Contract Information website. The most highly qualified consulting firm will be notified of their selection and receive instructions for the electronic submission of the financial documents.

The most highly qualified consulting firm must submit a complete financial documents package no later than four (4) days after notification of selection. The prime consultant must submit the complete financial documents package in order for Caltrans to have the information necessary to engage in negotiations. The prime consultant is solely responsible for timely and complete submission of financial documents on behalf of the entire proposed team; financial documents will not be accepted from proposed subconsultant firms. Failure to submit a complete financial documents package by the specified due date may result in termination of negotiations with the most highly qualified consulting firm.

F. Negotiations will be held with the top-ranked firm by teleconference/WebEx during the week of July 11, 2025. The fee for profit shall be ten-point zero percent, and the escalation shall be as follows:

Year Period Escalation 1 5/15/2025- 5/31/2026 1.81% 2 6/1/2026 - 5/31/2027 3.62% 3 6/1/2027 - 5/31/2028 3.62% 4 6/1/2028- 7/31/2028 3.62% Notes:

1. Partial year will only occur on the last year of the contract term. All other periods are full years.

2. Increases to the loaded billing rates after contract execution is not authorized for any reason per Article IV, Section 17 and Article XVI, Section 6 of the California Constitution.

G. The scheduled date to complete cost negotiations and submit final cost proposal is July 23, 2025.

H. Disadvantaged Business Enterprise Program

1. This solicitation and resultant Agreement is financed in whole or in part with federal funds and therefore subject to Title 49, Code of Federal Regulations, Part 26 (49 CFR 26) entitled "Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs." To ensure equal participation for Disadvantaged Business Enterprise (DBE) groups specified in 49 CFR 26.5, Caltrans specifies a contract goal for DBE participation. The required goal for DBE participation in this solicitation is not less than twenty-three percent (23%).

https://dot.ca.gov/programs/procurement-and-contracts/ae-contract-information

2. Only participation by certified DBEs will count toward the contract goal for this solicitation. In order to count toward a contract goal, a firm must be certified as a DBE by the California Unified Certification Program (CUCP) and possess the NAICS and work codes applicable to the type of work the firm will perform on the Agreement by the SOQ submittal due date. NAICS and Work codes are provided by the Office of Civil Rights website.

3. It is the proposer’s responsibility to verity that the DBE firm is certified as a DBE by the specified SOQ submittal due date and time. The list of DBEs certified by the CUCP are located on the Office of Civil Rights website.

4. A DBE must perform a commercially useful function (CUF) for the type of work it will perform on the Agreement as provided in 49 CFR 26.55I(1)-(4). A DBE performs a CUF when it is responsible for the execution of a distinct element of the work of the Agreement and is carrying out its responsibilities by actually performing, managing, and supervising the work involved.

5. See “Statement of Qualifications Submittal Instructions and General Contract Process Information” for detailed information and references to the required forms. Required forms will be made a part of the Agreement. Failure to meet the DBE goal or Good Faith Effort requirements and provide required DBE participation at due date and time of SOQ submittal may result in the SOQ submittal being rejected as non-responsive.

I. Federal and/or State prevailing wage rates may apply. This requirement, if applicable, will be specified in the draft Agreement. See SOQ Submittal Instructions, Section I.,G. regarding the California Department of Industrial Relations (DIR) Consultant/Contractor Registration Program on the AE Contract Information website.

J. Caltrans does not guarantee, either expressly or by implication, that any work or services will be required under any contract issued as a result of this RFQ.

K. A Pre-award or Post-award Audit will be performed on any contract issued as a result of this RFQ.

L. Contract boilerplate can be obtained on the AE Contract Information website.

M. Pursuant to Executive Order (EO) N-6-22 issued March 4, 2022, persons identified in the list established by the US Department of the Treasury are ineligible to bid on, submit a proposal for, enter into, or renew any Agreement with the State for any goods and/or services.

Any person who submits a bid or proposal to Caltrans certifies that it is not identified in the most current lists located https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions.

If applicable, any person who submits a bid or proposal to Caltrans certifies that its subcontractors are not identified in the most current lists located https://dot.ca.gov/programs/civil-rights https://dot.ca.gov/programs/civil-rights https://dot.ca.gov/programs/procurement-and-contracts/ae-contract-information https://dot.ca.gov/programs/procurement-and-contracts/ae-contract-information https://dot.ca.gov/programs/procurement-and-contracts/ae-contract-information https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions

N. Pursuant to Executive Order N-12-23 – Generative Artificial Intelligence (GenAI) Technology Use and Reporting, effective February 20, 2025.

1. The State of California seeks to realize the potential benefits of

GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

2. Bidder / Offeror must notify the State in writing if it:

A) intends to provide GenAI as a deliverable to the State; or B) intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts:

1) functionality of a State system,

2) risk to the State, or

3) Contract performance.

Note: For avoidance of doubt, the term “materially impacts” shall have the meaning set forth in State Administrative Manual (SAM) § 4986.2 Definitions for GenAI.

3. Failure to report GenAI to the State may result in disqualification. The State reserves the right to seek any and all relief to which it may be entitled to as a result of such non-disclosure.

4. Upon notification by a Bidder / Offeror of GenAI as required, the State reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the State.

5. Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.

II. SCOPE OF WORK/DELIVERABLES

The work to be performed for this RFQ is described in the Scope of Work/Deliverables and is hereby incorporated as Attachment 1.

III. CONFLICT OF INTEREST

A. Conflicts of interest may occur due to direct or indirect financial or business interests in the work to be performed or in any real property acquired for such project. Conflicts of interest can include, but are not limited to, past, existing or planned activities or because of relationships with other persons or firms. If there is a conflict of interest, the proposed team, including both the prime consultants and subconsultants, and individual employees of team members would actually or potentially be unable to render impartial assistance or advice to Caltrans. The proposer’s objectivity or availability in performing the contract work may be impaired due to actual or https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country-information/ukraine-russia-related-sanctions potential conflicts of interest.

B. If the proposed team determines that any actual or potential conflicts of interest exists, it must identify and describe in detail each conflict of interest to Caltrans, using the Disclosure of Potential Conflict of Interest Form, which can be found on the AE Contract Information website. Along with the description of the actual or potential conflicts of interest, the proposed team shall also offer measures to avoid, neutralize, or mitigate all listed conflicts. The list of conflicts, including conflicts that apply to individuals as well as firms, and the mitigation measures on the Disclosure of Potential Conflict of Interest Form must be submitted as a separate section in the Statement of Qualifications.

Disclosure of information will not disqualify a proposed team from competing for a contract. The existence of actual or potential conflicts of interest will be used as a criterion to evaluate team availability during the evaluation and selection process. Caltrans reserves the right to terminate negotiations with the first selected firm and begin negotiations with the next selected firm or to cancel the procurement prior to execution if Caltrans learns that the selected team failed to disclose any actual or potential conflicts, which it knew or should have known about, or if the proposed team provided or omitted information on the disclosure form that results in the information being false or misleading.

C. After award, conflict of interest guidelines and policies shall continue to be monitored and enforced by the Caltrans Contract Manager.

Additional information about Conflict-of-Interest issues can be found in the SOQ Submittal Instructions and General Contract Process Information document (Section V. Post Government Employment Restrictions and Section VI. Conflict of Interest Concerning Consultant(s)) found on the AE Contract Information website (see link below). The State and Federal contract boilerplates on DPAC’s website also contain information on conflict-of-interest issues (Exhibit D) and can be found on the AE Contract Information website (see link below).

D. The prime consultant and subconsultants may be proposed on SOQs for other Caltrans A&E on-call contracts; however, the Caltrans Contract Manager may prohibit work on specific project(s) where Caltrans determines that a conflict of interest exists.

IV. SUBMISSION OF STATEMENTS OF QUALIFICATIONS (SOQs)

A. IMPORTANT: Download “Statement of Qualifications Submittal Instructions and General Contract Process Information” from the AE Contract Information website (Dated Rev. 10/07/2020) .

Failure to follow these instructions may result in rejection of your SOQs.

B. SOQ Package Submittal Instructions

Read instructions below carefully. You will be required to submit an electronic SOQ file to Sacramento.

1. The electronic submission of a single unprotected (i.e. not password protected) PDF file of the SOQ is required. The electronic submittal will be accepted until 10:00 a.m. on May 15, 2025. Hard copies of the SOQs are NOT required. Fax copies or copies transmitted by email will not be allowed.

2. You will be required to create a Novell Filr account with Caltrans.

Send an email message to the Contract Analyst, Vanessa Usanmaz, at Vanessa.Usanmaz@dot.ca.gov containing the information listed below for a link and instructions to complete the self-registration page and submit the SOQ electronically.

Your firm’s name Your email address The solicitation number for which you would like to submit a SOQ

The file name shall include the contract number, consultant name (max. 25 characters) separated by an underscore (_), ending with the “.pdf” extension.

Example A: 50A0694_JohnDoeConsulting.pdf Example B: 50A0694_aaa1234engineer.pdf

3. SOQ submittals will be considered non-responsive if the electronic submittal is not received by the date and time specified in this RFQ.

C. Request for RFQ Copies Copies of this RFQ may be obtained on the CaleProcure website.

mailto:Vanessa.Usanmaz@dot.ca.gov https://www.caleprocure.ca.gov/pages/index.aspx

Attachment 1

Revised 4/10/2025

SCOPE OF WORK/DELIVERABLES

COST AND SCHEDULE RISK ASSESSMENT AND FINANCIAL PLANS

For Caltrans, Division of Project Management, District 44

On-Call Contract/Agreement

A. GENERAL PROJECT DESCRIPTION AND OVERVIEW OF SERVICES

1. Purpose of Work

2. Background

3. Exclusion of Project Work

4. Location of Caltrans Project Work

B. REQUIRED SERVICES – Cost and Schedule Risk Assessment AND FINANCIAL PLAN

1. Overview

2. FHWA Scope Assignments – Cost and Schedule Risk Assessment and Financial Plan

C. REQUIRED SERVICES – WORK BREAKDOWN STRUCTURE ACTIVITIES

1. Caltrans Workplan Standards Guide

2. The WGS References

D. REQUIRED SERVICES - PROPOSED MAJOR AND/OR HIGH-PROFILE PROJECTS 22

1. List of Proposed Caltrans Projects

E. DELIVERABLES

1. Cost Schedule Risk Assessment (CSRA)

2. Financial Plan

F. GENERAL REQUIREMENTS – PERFORMANCE

1. General CSRA and Financial Plan Services

2. Task Order Development Process

3. Partnering

4. Team of Subject Matter Experts

5. Quality Control Quality Assurance Plan

6. Federal Highway Administration Requirements for Quality Control Quality Assurance . 32

G. GENERAL REQUIREMENTS –– PERSONNEL

1. Independent Contractor Status

2. Consultant Work Hours and Availability

3. Assigned Personnel on Task Orders

4. Personnel Substitutions or Additions

5. Stable Work Force

6. Safety

7. Other Personnel Requirements

8. NDA - Confidentiality

H. INCIDENTAL AND ANCILLARY SERVICES

1. Non-Architectural and Engineering (A&E) Services

2. Training Services

3. Printing Services

I. CONSULTANT PERSONNEL REQUIREMENTS

1. NHI Course 134205 - ‘Probabilistic Risk-based Estimating in Highway Projects Cost and Schedule’

2. Consultant Contract Manager

3. Consultant Task Order Manager

4. Consultant Responsible -Person –- Lead CSRA Engineer

5. Consultant Cost Facilitator and Risk Facilitator

6. Rank and File Support Consultant Team

J. COORDINATION

K. GENERAL REQUIREMENTS – DELIVERABLES AND DATA

1. Ownership of Proprietary Property

2. Format for Unprotected and Modifiable Electronic File Transfers

3. Submittals

4. Project Files

L. REVIEW AND ACCEPTANCE PROCESS

1. General Affirmation

2. Review of Deliverables

3. Acceptance of Deliverables

4. Rejection of Deliverables

M. GENERAL REQUIREMENTS-EQUIPMENT AND APPURTENANCES

1. General

2. Office Equipment and Supplies (Consultant’s Office)

3. Office Equipment and Supplies (Use of Caltrans Office)

N. GENERAL REQUIREMENTS – STANDARDS

1. Federal, State, and Local Requirements

2. Prevailing Wages

3. Caltrans Standards

4. Manuals

5. Policies and Directives

O. GENERAL MATERIALS AND ORIENTATION PROVIDED BY CALTRANS

1. General Materials

2. Orientation

3. Caltrans PDT

P. CONFLICT OF INTEREST

1. Ethical Integrity and Influence of Impropriety

2. Project Delivery Related Conflict

3. Personnel Related Conflict

4. Financial Advantage Conflict

5. Relationship with Other Transportation Agencies Conflict

6. Other Conflicts of Interest

7. Examples of Conflicts of Interest

8. General Requirements

SCOPE OF WORK/DELIVERABLES

COST AND SCHEDULE RISK ASSESSMENT AND FINANCIAL PLANS

For Caltrans, Division of Project Management, District 44 On-Call Contract/Agreement

A. GENERAL PROJECT DESCRIPTION AND OVERVIEW OF SERVICES

1. Purpose of Work

a) FHWA Cost and Schedule Risk Assessment (CSRA) and Financial Plan (FP) for Major High-Profile Caltrans Projects.

The Consultant shall perform consultation, research, professional and technical services required for the Cost and Schedule Risk Assessment study and the preparation of the financial plans for all federally funded Major High-Profile Caltrans Projects throughout the State of California. Section 106(h) of Title 23, CFR defines a Major High-Profile Caltrans Project as a federally funded project with a minimum estimated total cost of $500 million. Consultant shall complete;

all work in compliance with FHWA regulations for Major High-Profile Caltrans Projects; all necessary CSRA and Financial plan work on behalf of Caltrans.

Consultant work shall be performed by, or under the direction of, a licensed registered engineer.

b) FHWA Financial Plans (FP) preparation for Mini-Major Caltrans Projects.

The Consultant shall perform consultation, research, professional and technical services required for the preparation of the financial plans for all federally funded Mini-Major Caltrans Projects throughout the State of California. Section 106(h) of Title 23, CFR defines a Mini-Major Caltrans Project as a federally funded project with total estimated cost of between $100 million and $500 million.

Consultant shall complete; all work in compliance with FHWA regulations for Mini-Major Projects; all necessary Financial plan work on behalf of Caltrans.

Consultant work shall be performed by, or under the direction of, a licensed registered engineer.

c) FHWA Review of CSRA Assignment After Contract execution for Consultant led of CSRA efforts, Caltrans will submit the scope of CSRA services to FHWA for review and comment prior to commencing on Task Order for CSRA activities. Pursuant to the proposed type and nature of Major High-Profile Caltrans Projects, Caltrans reserves the right to amend the FHWA Scope Assignments herein to incorporate FHWA special provisions via Task Order Development Process described herein, at its sole discretion.

d) FHWA Concurrence of Consultant Personnel FHWA along with Caltrans may interview the Consultant’s personnel for CSRA qualifications and experience described in this Contract. The Caltrans Contract Manager’s decision to select the Consultant’s personnel shall be binding to the Consultant and its subconsultants. The Consultant shall provide qualified, capable, competent, and experienced personnel in performing CSRA, to be interviewed by FHWA and Caltrans within one (1) week of receiving the request.

e) Capital Project Delivery Phase The Consultant shall perform professional and technical services required for project development and delivery support services, on an on-call “as-needed” basis to support the Divisions of Project Management for the Caltrans Districts listed in Section A. 5. “Location of Caltrans Project Work”, managed via HQ Project Management – District 44. Consultant is limited to performing A&E Services for delivering of CSRA for Major and/or High-Profile capital projects on the State Highway System (SHS) in the Phase 0 - Project Approval and Environmental Document (PA&ED), Phase 1 - Plans, Specifications, and Estimates (PS&E), and Phase 2 – Right of Way Engineering.

f) Architectural and Engineering Services Notwithstanding any other provision in this Contract, the Consultant shall provide only architectural and engineering services defined by Government Code section 4525(d) and 4526 (“A&E Services”) regarding the services covered by this Contract. Only A&E Services are permitted to be performed under this Contract, except that non-A&E Services are permitted if the cumulative value of all such non-A&E services do not exceed 15% of the total expenditures under this Contract. No compensation will be provided to the Consultant for non-A&E Services that exceed 15% of the total expenditures under this Contract without the prior written consent of the Caltrans Contract Officer. The request for exceeding the 15% threshold will be submitted in writing through Caltrans Contract Manager to the Caltrans Contract Officer.

2. Background

a) The estimated cost of a project is critical information for the public, decision-makers in legislative bodies, and transportation officials when deciding which transportation projects to support. Since these important funding decisions are often made during the early stages of planning and programming, when information is limited and cost estimates are only conceptual in nature, the cost profile of a project is liable to change in the subsequent phases of project delivery.

These changes can be attributed to several factors, such as increases in costs of construction materials, unexpected site conditions, and other issues that may alter a project's scope, design or implementation schedule. Sometimes these changes can be significant, to the point that they would have changed the initial decision to advance the project.

b) One of the critical elements of a successful project delivery - one in which public confidence and trust are maintained throughout the project development process -lies in the adoption of a rigorous integrated cost estimating approach, one in which estimates are reviewed and updated continually, from systems planning through the NEPA process up to construction to ensure that accurate and current cost data is available to all stakeholders interested in the project.

c) In the case of Major or High-Profile Projects, which are relatively more complex and contain more risk elements than others, a rigorous cost estimating process becomes even more critical. One of the key mandates is to ensure that Caltrans Project Development Teams (PDT) developed schedule and cost estimates for Major or High-Profile Projects are reasonable and supportable.

3. Explanation of Work

a) The Caltrans Contract Manager shall assign specific work to the Consultant through the issuance of Task Orders describing in detail the services to be performed. The Consultant shall only perform work that is assigned in an authorized Task Order. This Contract does not guarantee that a Task Order shall be issued. Attention is directed to section F. – “GENERAL REQUIREMENTS – PERFORMANCE”, subsection 2 – “Task Order Development Process” below.

b) Contract shall be Task Order driven and shall have a three (3) year duration, with CSRA related assignment Task Orders executed within the first 30 months. No new Task Orders shall be executed after the first 30 months of the Contract term however Consultant shall utilize the last 6 months to complete all open Task Order(s).

4. Exclusion of Project Work

The following activities will be performed by others and are excluded from this Contract. The Consultant must include the excluded activities in the project schedule to be submitted to Caltrans for approval. Consultant further agrees to provide the necessary information in a timely manner to facilitate the successful completion of the excluded tasks listed below.

a) The following on-going open projects and associated postmiles limits are excluded from this Contract until existing contract sunsets its authority:

b) The following scope performed by others is excluded:

i. Development of the project cost and or schedule for project delivery.

ii. Development of the project workplan according to Caltrans Work Breakdown

Structure (WBS) for managing the project in Project Resource and Schedule Management (PRSM) system.

iii. The Consultant shall not perform work on project(s) in the planning phase (K- Phase) and will not be reimbursed for any work performed during this phase or any project planning activities.

iv. Consultant shall not provide general training or participate in a workshop providing training that does not involve the specific work products of this Contract. General training should be incidental and the total aggregate value of all incidental work (including training) under this Contract shall not exceed 15% of the total Contract value.

v. Consultant shall coordinate with Caltrans Contract Manager for all printing service needs. Pursuant to Government Code Section 14850 and State Contracting Manual, Volume 1, Section 3.21 mandate that all printing services, including print service requests within Contracts, must be performed by the Office of State Publishing (OSP) or the California Prison Industry Authority (CALPIA), unless completed by a Caltrans Reprographics Unit.

Existing Contract No.

Open Task Order No.

Location:

Co– Rte – Post Mile Limits

Brief Project Description

07A5768 2 LA-047-0.40/2.0 CSRA for Vincent Thomas Bridge Deck Replacement

vi. Attention is directed to “Location of Caltrans Project Work” for Districts not included herein.

c) Information technology (IT) related works such as auxiliary automated information handling, including systems design and analysis, conversion of data, computer software programming, information storage and retrieval, voice, video, data communications, requisite systems controls, and simulation are excluded.

The following Information Technology related activities are excluded:

i. Maintenance of Web site interfacing with Caltrans network is prohibited.

ii. Information management planning is prohibited.

iii. Development and implementation of application systems or programs, or changes to application systems or programs to meet new or modified needs, or maintenance.

iv. Operation of application systems or programs including handling, assembling, or editing of input-output data or media where IT equipment or IT personnel are used.

v. Installation, operation, and maintenance of data processing equipment, IT equipment, goods and services, and software.

vi. Other installation management activities including performance measurement, system tuning, and capacity management.

5. Location of Caltrans Project Work

The work shall be performed on projects to improve the State transportation system for all counties in the State of California in Caltrans Districts 01, 02, 03, 04, 05, 06, 07, 08, 09, 10, 11, and 12. The specific location within the above-described geographical limits of the work shall be identified in each Task Order.

a) Adjoining Caltrans District/County Line It may become necessary for projects to extend into another adjoining Caltrans District/County line. In such instances, the project work shall not extend more than a thirty (30)-mile radius from the geographic boundary.

b) Relationships with Other Agencies Consultant is directed to Section P – “Conflict of Interest”, subsection 5. – “Relationship with other Transportation Agency Conflict”.

B. REQUIRED SERVICES – COST AND SCHEDULE RISK ASSESSMENT

AND FINANCIAL PLAN

1. Overview

Major High-Profile projects by nature are usually more complex and contain more risk elements than other projects. Careful attention must be provided when reviewing schedule and cost estimates from the Caltrans PDT for Major High-Profile and Mini- Major Caltrans Projects. CSRA estimates should be developed using the most recent information available along with the best engineering judgment applied.

a) The objectives of this Cost and Schedule Risk Assessment (CSRA) are to take the project information generated by the Caltrans PDT and to identify the potential impacts to overall project cost and schedule due to specific risks to the project, evaluating the probability of such risk occurring and to assign a range of costs if such risk were to occur with the end goal of preparing an associated project financial plan. Consultant shall also incorporate the Caltrans’s risk management processes with above objective.

b) Consultant will daylight any risk as either be a threat or an opportunity.

Systematic identification of risk in the project will help Caltrans take necessary steps to reduce or eliminate threats and to increase probability and/or benefit of opportunities.

c) This CSRA will serve as a FHWA Cost Estimate Review (CER) and meet FHWA’s Consultant Led CSRA guidance and Caltrans’ Project Risk Management Handbook. The Consultant confirms that their representatives will perform an independent review of the Caltrans PDT’s schedule and estimate, and that there is no conflict-of-interest present with previous work performed.

d) The primary objectives of this CSRA are to identify the potential impacts to overall project cost and schedule due to uncertainties and specific risks to the project. Subsequently, the Consultant shall utilize the CSRA for the preparation and updating of the project financial plan to meet this objective, by performing the following:

i. Review relevant Caltrans PDT’s project documentation, including base cost and schedule estimates, and technical reports.

ii. Conduct a prep video conference about three weeks prior to the CSRA workshop to familiarize the Caltrans PDT with the process as well as develop the materials for the CSRA workshop.

iii. Review and validate the Caltrans PDT base cost estimate, including identification of and accounting for prior costs to date, such as planning, NEPA, and preliminary engineering costs.

iv. Coordinate with Caltrans Districts to identify and document the required CSRA workshop participants, including Caltrans PDT members, Caltrans subject matter experts, stakeholders, Central Office staff, and FHWA representatives.

v. Facilitate the CSRA workshop for the project to validate the project base cost and schedule estimates, identify and incorporate any adjustments to the base, and identify and quantify key project risks.

vi. Produce risk-based cost and schedule estimates using the simulation model with input gathered during the documentation review, prep session, and CSRA workshop.

vii. Develop a Monte Carlo simulation model and input the project’s base cost and schedule information.

viii. Prepare a presentation of initial results for review by the Caltrans project development team.

ix. Draft, seek and address review comments by Caltrans project development team and finalize a report summarizing the CSRA.

x. Preparation and updating of the project financial plan.

e) The Consultant shall conduct the CSRA in accordance with FHWA’s Major Project Program Cost Estimating Guidance (January 2007), FHWA’s Major Project Financial Plan Guidance (December 2014), FHWA’s Estimating Schedule for FHWA Major Projects (February 2016), FHWA’s Consultant Led CER guidance, and CALTRANS’s Project Management Handbook.

f) The preparation and updating of the project financial plan shall be in accordance with the FHWA’s Financial Plans Process and the FHWA’s Financial Plan Guidance (December 2014).

2. FHWA Scope Assignments – Cost and Schedule Risk Assessment and Financial Plan

The following sections contain each of the key assignments the Consultant may perform to complete each CSRA study and financial plan in accordance with the FHWA guidance and standards.

a) Assignment 1 – Gather Relevant Project Information

To initiate the CSRA process, the Consultant shall gather all existing Caltrans PDT’s documentation, reports and data for the project, including but not limited to:

i. The base cost estimates, including both previously expended (e.g. planning, NEPA, and preliminary engineering, ROW, utilities, construction, 3rd party payments, and other capital costs), and anticipated future costs.

ii. Consultant shall coordinate with Caltrans PDT to ensure that the costs data gathered is expressed in base year dollars (excluding future inflation).

iii. Prior and fixed costs should be included and clearly identified.

iv. Caltrans project costs should be mapped to project phases and segments, if applicable.

v. The sponsor’s inflation forecast (if existing) should be provided with the estimate.

vi. A summary-level project schedule provided to help identify major phases and relationships for the CSRA modeling.

vii. The base project schedule from time of workshop to project completion.

viii. Consultant shall ensure that the Caltrans PDT’s comprehensive risk register is developed in advance of the CSRA to capture risks relative to the current assumptions made in the base cost estimate (without contingency) and schedule, including any potential delays or accelerations to the critical path of a major project phase.

ix. Relevant technical reports or memoranda for the project .

x. Project phasing plan.

xi. Caltrans PDT’s Design drawings.

xii. Project NEPA, Supplemental Agreements, Value Engineering Reports, and

xiii. Other documents and reports as identified by the Caltrans project development team.

b) Assignment 2 – Review of Caltrans PDT’s Base Cost and Schedule

Consultant shall conduct a thorough review of Caltrans PDT’s projects cost estimate assumptions initiated at this stage in the CSRA process. This review shall include but not limited to the following:

i. Reviewing scope, schedule, and cost assumptions by independent experts.

ii. Explicitly identifying contingency and separating it from baseline estimate.

iii. Categorizing costs by phases, if applicable, and by previously expended and anticipated future costs.

iv. Assess historical price fluctuations for key project components.

v. Identify and quantify uncertainty in project baseline cost estimates.

vi. The Consultant shall thoroughly review Caltrans Project development team’s project base cost and its components, including the contingency and the allowance items.

vii. Consultant shall define the summary level cost categories for analysis results, broken down according to project phasing, if applicable (if Caltrans determines that the project will be advanced in fundable phases, the project costs will be appropriately assigned)

viii. Consultant shall review, identify and separate out prior and fixed cost to date.

ix. Assign base cost uncertainty to the elements within the cost estimate.

x. Identify the anticipated market conditions at the time of construction contract(s) bid and award.

xi. Identify the strategy for developing and reviewing the project’s risk register.

xii. Consultant shall obtain clarifications on any of the documentation reviewed under Assignment 1.

xiii. The Consultant shall coordinate with the Caltrans project development team SMEs to develop a simplified representation of the project schedule where project tasks are combined within relatively similar activities and can be correlated to the cost categories noted above, and where any dependencies among activities, and the project (most) critical path, are highlighted.

c) Assignment 3 – Conduct Pre-CSRA Webinar/Teleconference

The Consultant shall schedule a pre-CSRA video conference to occur about three weeks in advance of the CSRA workshop, with Caltrans project development team including FHWA participation, to review the most significant information from Assignments 1 and 2 and ensure that the necessary preparations are being made for a successful CSRA workshop. The Consultant shall prepare an agenda for the pre-CSRA workshop and shall address as a minimum, the following topics:

i. Overview of CSRA, Objectives and Expectations

ii. Project briefing/highlights, Overview of NEPA process, Project scope including phasing/segments, Procurement approach by Caltrans Project Development Team.

iii. Project Estimate Overview – developed by the Caltrans Project Development Team

iv. Project Schedule – developed by the Caltrans Project Development Team

v. Project Risk Register – developed by the Caltrans Project Development

Consultant team

vi. Consultant shall coordinate with Caltrans to capture actions needed before

CSRA Workshop

• Submittal verification – Latest Project Cost Estimate, Schedule, and Risk

Register (Assessment items requested by email)

• Risk Register and preliminary CSRA considerations

• Finalize workshop agenda and participants.

• Other items to be addressed at the CSRA Workshop

vii. Consultant shall coordinate and make arrangements for CSRA Workshop logistics

viii. Consultant shall capture and address Questions and Answers from the CSRA Workshop

ix. The Consultant shall provide a summary of the pre-CSRA video conference to the Caltrans Task Order Manager for review and approval, including any remaining action items that need to be accomplished before the CSRA workshop.

d) Assignment 4 - Develop Risk Register

i. The Consultant shall develop a revised version of Risk Register as defined in Caltrans Project Delivery Directive (PDD-09R2) for the purpose of conducting the CSRA based on risk tools in advance of the CSRA Workshop through previous project-specific risk identification and analysis work conducted by Caltrans PDT. The revised risk register combines information on the nature of the risk (a brief description of the event or scope change), its probability of occurrence, its cost and/or schedule impact (expressed as a probability distribution), and the activities potentially impacted.

ii. Based on the Caltrans PDT developed project risk register developed prior to the CSRA Study, the Consultant team, will lead a collaborative effort during the workshop to review and achieve Caltrans Project Development Team consensus on all cost and schedule risks that will need to be incorporated into the Monte Carlo simulation model.

e) Assignment 5 – Develop Monte Carlo Simulation Model

i. The Consultant shall develop a customized cost and schedule Monte Carlo simulation model under this Assignment prior to the start of the CSRA workshop. The Monte Carlo simulation model will be structured around the project’s base cost and schedule identified in the previous Assignments. The model will enable Monte Carlo simulation techniques to combine the project’s base cost and schedule values with uncertainty, the risk register, and inflation factors, to produce full probability distributions for total project costs in Year of Expenditure (YOE) and project completion date.

ii. The Consultant shall coordinate with Caltrans to determine if the project will be advanced in fundable phases, the project costs will be appropriately assigned in the Monte Carlo simulation model such that YOE results and can be produced for both the funded phase and the total project.

iii. The Monte Carlo simulation model, including a summary of the base cost and schedule inputs, shall be provided to Caltrans for review and comment one (1) week prior to the start of the CSRA workshop.

f) Assignment 6 – Conduct CSRA Workshop

i. The Consultant will conduct the CSRA workshop and encourage an open and transparent process to review and validate the Caltrans project’s base cost and schedule, identify and incorporate project uncertainties, and account for risk events that may impact the project’s estimated cost and schedule.

ii. The Consultant shall have an opening presentation developed and presented to explain the goals of the workshop and how the risks will impact the final YOE costs. Consultant shall coordinate with all Caltrans subject matter experts (SME’s) to attend this opening presentation so that they will understand how inputs will impact the final result. Definitions of terms such as market conditions, base variability, and other variables should be discussed at beginning of the CSRA workshop.

iii. The Caltrans project base cost estimate shall be reviewed, and any necessary adjustments should be identified and incorporated into the estimate. The Consultant shall review the base estimate to determine the level of confidence in the estimates and develop ranges around key cost categories to reflect the uncertainty as it relates to the quantities and prices.

iv. The anticipated market conditions at the time of construction contract(s) bid and award will be discussed during the CSRA workshop and be incorporated into the Monte Carlo simulation model as appropriate.

v. The inflation factors to be used in the Monte Carlo simulation model shall be verified and confirmed during the CSRA workshop. Inflation should be applied to the mid-point of construction, per FHWA CER Guidance.

vi. The Caltrans Project’s base schedule will be reviewed, and Consultant shall make any necessary adjustments identified and be incorporated into the base schedule. The concept of a schedule contingency shall be discussed during the CSRA workshop, including the potential identification of a schedule contingency in the project’s Initial Financial Plan.

vii. The Consultant shall highlight various project’s risk events (threats and opportunities) which shall be classified as technical (i.e. geotechnical, structural, or environmental design considerations), non-technical (i.e. right of way costs, regulatory concerns, or market conditions), or political (i.e.

funding, legal challenges, or scope changes). The example risk events shall include but not limited to the potential for additional requirements to meet environmental regulations, adverse geotechnical conditions in constructing high retaining walls, or the discovery of unexpected utilities.

viii. Experts from the Caltrans Project Development Team and other independent experts, including the SMEs, who have information on the threat/opportunity issues, populate the risk register in a CSRA workshop setting. Uncertainty and correlations in the base costs and durations can also be assessed when they are significant, and these should be defined consistently for the threat and opportunity events. These assessments are made with the risk lead facilitating the development of a collective opinion from among the Caltrans Project Development Team and independent SMEs.

ix. The CSRA Workshop will occur over two and a half days. The likelihood and consequences of occurrence for each risk/opportunity event shall be assessed during the CSRA workshop. Prior to the conclusion of the CSRA workshop, a review of all inputs, including the project risk register will be performed and consensus from the group shall be reached. The Consultant revised risk register and the preliminary results of the workshop shall be presented at the conclusion of the CSRA workshop.

g) Assignment 7 – Produce Risk Analysis Results

After the CSRA workshop, the Consultant shall include the cost and schedule projections that show the range of potential outcomes for the project.

i. The specific types of results required for the project will be discussed and agreed upon during the prep session and CSRA workshop, however, the 70% confidence YOE amount must be provided. The full range of YOE amounts will be presented to the CALTRANS as well (including every 10th percentile from 0-100).

ii. Consultant shall coordinate with Caltrans to determine if the project will be advanced in fundable phases, if so then project costs shall be appropriately assigned in the Monte Carlo simulation model such that YOE results can be produced for both the funded phase(s) and the total project.

iii. Tornado diagrams, which are useful for risk prioritization and risk management, will be provided. This shows the top risks factors in terms of their impact on overall project cost or overall project schedule delay. The tornado diagrams will help to guide the risk management efforts to target the top contributors of cost and schedule risk including the following:

• Cost Probability Distribution (S-Curve), for total project cost and the construction contract cost

• Schedule Probability Distribution (S-Curve)

• Top Cost Risk Factors Tornado Diagram; and

• Top Schedule Risk Factors Tornado Diagram

h) Assignment 8 –Present Results

On the third day of the CSRA workshop, a dry run version of the presentation will be provided to the Caltrans Project Development Team for comments and concurrence.

Following this, the final presentation will be delivered to the Caltrans District Project Manager and FHWA to showcase the results. The Consultant’s presentation shall encompass the CSRA Objective, Methodology, CSRA Input, and results, providing an overview of project cost estimates, substantial project threats and opportunities, and recommendations.

i) Assignment 9 – Document and Report Results

Following the workshop, a draft report will be prepared, documenting the process, key inputs, and findings from the analysis. The report will include the following and any other related discussions and documentation.:

EXECUTIVE SUMMARY

CHAPTER 1 – CSRA PROCESS

• INTRODUCTION

• CSRA OBJECTIVE

• BASIS OF CSRA

• CSRA TEAM

• DOCUMENTS ASSESSED

• METHODOLOGY

CHAPTER 2– CSRA SUMMARY

• PROJECT BACKGROUND

• ENVIRONMENTAL PROCESS

• PROJECT PROCUREMENT

• PREVIOUS CSRA ASSESSMENT

• PROJECT SCHEDULE

• COST ESTIMATE

• CSRA OBSERVATIONS

• CSRA RECOMMENDATIONS

CHAPTER 3 – COST ANALYSIS (MONTE CARLO SIMULATION)

• RISK INTRODUCTION

• PROBABILITY ASSUMPTIONS

• RISK REGISTER

• OTHER FACTORS AFFECTING PROJECT COSTS

• FORECAST TOTAL COSTS

• FORECAST COSTS FOR PROJECT ELEMENTS

• FORECAST PROJECT SCHEDULE

• SENSITIVITY ANALYSIS ON INFLATION

• CONCLUSION

APPENDICES

A – CSRA Workshop Agenda B – CSRA Workshop Participants C – CSRA Model D – Project Risk Register E – CSRA Opening Presentation F – CSRA Closing Presentation G – Public-Private-Partnership (P3) Assessment

The report shall be submitted to the Caltrans Project Development Team for review and feedback. Proposed revisions to the draft report shall be discussed with the Caltrans Project Development Team, and changes should be made as appropriate.

Following this, a final report documenting the study shall be submitted to the Caltrans Project Development Team, including an errata sheet showing how all comments on the draft report were addressed.

The timeline for submission shall be as follows:

1 week after Workshop: Submission of the model and closeout presentation.

4 weeks after Workshop: Sending the draft CSRA report for review.

8 weeks after Workshop: Coordination of comments from the Caltrans Project Development Team 12 weeks after Workshop: Delivery of the final CSRA report to the Caltrans Project Development Team

j) Assignment 10 – Preparation and Updating of the Project Financial Plan

Depending on each Caltrans’ Districts need to develop, monitor, and submit the Initial and Annual Financial Plans for all federally funded projects defined as either “Major High-Profile” or “Mini-Major” Caltrans Projects, the Task Order assignments may require the preparation and updating of the project financial plans. If warranted, the Consultant shall perform and complete all work in compliance with FHWA regulations for Mini-Major Caltrans Projects, not limited to the following:

i. At a minimum, the initial Financial Plan shall include the information outlined in the following nine sections: 1. Project Description, 2. Schedule, 3. Project Cost, 4. Project Funds, 5. Financing Issues, 6. Cash Flow, 7. Public-Private Partnership (P3) Assessment, 8. Risk and Response Strategies, 9. Annual Update Cycle.

ii. Consultant shall update each of the nine sections in the Initial Financial Plan to reflect any changes that have occurred since its approval. The Annual Updates shall also include discussions on the reasons and trends associated with these updates. The following sections should be considered for the annual updates of the project financial plan: 10. Summary of Cost Changes Since Last Year's Financial Plan, 11. Cost and Funding Trends Since Initial Financial Plan, 12. Summary of Schedule Changes Since Last Year's Financial Plan, 13. Schedule Trends Since Initial Financial Plan.

iii. The current project cost estimate shall be compared to the previous project cost estimate, and differences shall be explained in sections 10 and 11 as appropriate. The cost-to-complete estimate should be adjusted to reflect expended costs.

iv. The funding and cash flow sections should be revised to identify the funding sources used for actual expenditures and those proposed to fund the remaining cost-to-complete.

v. The current project schedule should be compared to the previous project schedule, and differences should be explained in sections 12 and 13 as…