Amdment1 S-10700-00000869ExemptionOrderFindings.pdf

FINDINGS OF FACT SUPPORTING AN EXEMPTION FROM COMPETITIVE

BIDDING REQUIREMENTS AND THE USE OF THE DESIGN BUILD CONTRACTING

METHOD

Amendment #1 to

EXEMPTION NO. S-10700-00000869

Before the State Chief Procurement Officer of the

Department of Administrative Services of the State of

Oregon

Exemption Request of the Department of

Administrative Services State Procurement

Services for the Central Point Office

Renovation/Construction Project(s) in Central

Point, Oregon; Construct New Springfield

Area Forensics Laboratory/Medical Examiner

Office And Construct New Springfield Area

Command/Patrol Office

) Findings of Fact

ORS 279C.335(1) requires, with certain exceptions, that all public improvement contracts be based on competitive bidding and, under ORS 279C.375, be awarded to the responsible bidder submitting the lowest responsive bid.

ORS 279C.335(3) permits the Director of the Oregon Department of Administrative Services to grant, under certain conditions, exemptions from the requirement for competitive bidding for public improvement contracts by issuing an order stating conditions and approving specified findings that comply with ORS 279C.330, ORS 279C.335(2)(a) and (b), ORS 279C.350. ORS 279C.335(2), (4) and

(6) and ORS 279C.350 require findings to support the exemption.

In October 2021, DAS granted Exemption No. S-10700-00000869 allowing utilization of the design-build alternative procurement and contracting method for the projects identified in the above caption

(the Projects). Per the terms of the Exemption Order, the Exemption is to remain in effect from the date of issuance through the end of each of the Projects, subject to four conditions, with the fourth condition requiring that the procurement process be in accordance with every representation of the

Agency contained in the exemption request and incorporated by reference into the Order.

Following execution of the Exemption, DAS delegated its authority to procure, contract, and administer the design-build project to the Oregon Department of State Police (“OSP”), with that delegation agreement effective through December 31, 2028 (Delegation # REQ-DASOBO-

00111724—REQ-DASOBO-00024551(Amd #1)).

Since 2021, one Request for Proposals for the Projects was issued under the Exemption, which resulted in a design-build agreement for the Central Point facility and that facility is currently under construction.

Given the time that has passed since the initial RFP was issued, DAS and OSP have determined that it is in the best interest of OSP and the State to issue another Request for Proposals for the remaining two projects covered under the Exemption, as was contemplated as a possibility under the Exemption.

However, notwithstanding the fact that the Exemption remains in effect through the end of each of the

Projects, the Parties have re-evaluated the prior Findings of Fact and determined that updates to the

Findings of Fact are prudent before awarding another contract under the Exemption to ensure compliance with the conditions of the Exemption and ORS 279C.330, ORS 279C.335 and ORS

279C.350.

Thus, the Findings of Fact for the above referenced Exemption is being amended to reflect modifications to the Projects, , revised budgets for the Projects, and updated staffing plans to justify and support continued utilization of the Exemption as originally issued. Except for the changes in this amended Findings of Fact, there are no other changes to the Findings included in Exemption S-10700-

00000869. In accordance with ORS 279C.335(5)(c), a public hearing will be held in response to a written request before the amended findings are approved, allowing an opportunity for interested parties to comment on the draft amendments.

The Findings of Facts are hereby amended as follows (new language is indicated by underlining and bold and deleted language is indicated by strikethrough):

1. All references to “DAS Procurement Services” are replaced with “DAS State Procurement

Services” and references to “DAS PS” replaced with “DAS SPS”.

2. Where indicated that DAS SPS shall perform certain procurement functions, this may mean any State Procurement Officer delegated to have authority per the terms of a delegation agreement and subject to this Order/Finding of Facts.

3. Section I, Background, Description Projects.

OSP has procured the two additional properties, with Project B, new Springfield Area Forensics

Laboratory and Medical Examiner Office, now the Eugene Forensics Lab & ME Office; Project C remains the Springfield Area Command/Patrol Office. The two new properties are as follows:

Eugene Area Forensics Laboratory and Medical Examiner Office, 3300 Chad Dr., Eugene, Lane County, Oregon 97408

Springfield Area Command/Patrol Office, 3620 Gateway Street Springfield, Lane

County, Oregon 97477

The Project Timeline table is replaced with the following table:

Project Site Selection &

Feasibility Study

Contracts Design Construction Move-in

Central Point Office

Remodel

N/A Jun 2022

Dec 2022

Jan 2023

Dec 2025

Jan 2024

Dec 2025

Jan 2026

Jun2026

Eugene Forensic

Lab &ME Office

Jan 2023

Dec 2024

Jan 2025

Jun 2025

Jul 2026

Jun 2027

Jan 2026

Jun 2027

Jul 2027

Dec 2027

Springfield Patrol

Area Command

Jan 2023

Dec 2024

Jan 2025

Jun 2025

Jul 2026

Jun 2026

Jan 2026

Dec 2027

Jan 2028

Jun 2028

4. Section II, FINDINGS REGARDING REQUIRED INFORMATION.

Operational, Budget and Financial Data, last paragraph is revised as follows:

The total design and construction cost of each Project is estimated at (a) $25.9 56.8 million for the Central Point project; (b) $52.6 71.6 million for the Springfield Eugene Area Forensics

Laboratory and Medical Examiner Office; and (c) $11.6 15.2 million for the Springfield Area

Command/Patrol office. The Projects are supported by State funding.

5. Section II, FINDINGS REGARDING REQUIRED INFORMATION.

Paragraph 4, Specialized Expertise revised as follows:

4. Specialized Expertise: Each of the Projects pertain to a building with particular design and construction issues. For successful Project completion, expertise and innovation are required in: (a) managing and coordinating both design and construction in a "fast track" mode; (b) implementing performance specifications; (c) providing VE and constructability reviews; (d) scheduling and estimating; (e) assessing risk; and (f) providing a completed Project through a single point of responsibility.

DAS SPS and OSP have The State has the necessary and experienced staff to make the DB process successful. Shirley A. Smith Robert Johnson will function as the contracting resource during the term of the Projects, is professionally certified nationally by the Design-Build

Institute of America ("DBIA"), and has considerable expertise in alternate forms of contracting, including the use of the Design-Build delivery method for the past twenty (20) years. She has used the Design-Build contracting method for construction of a number of projects. The completed projects were accomplished within or under budget and on or ahead of schedule, and maximized the value of every dollar invested. Kailean Kneeland Jenny Cribbs, Business

Services Director, Sharon Domaschofsky Robert Johnson, Business Services Procurement

Manager, Eric Manus, Facilities & Capital Construction Manager and Major Joel Lujan Mike

Turner, Gaming Enforcement & Business Services Bureau Director, will also be assigned to work on the Projects. OSP will also be contracting for separate experienced DesignBuild project management services to ensure proper oversight of the Projects. OSP has contracted with Otak, Inc., a firm with strong background in project management oversight for

Design-Build projects such as the ones described herein.

Kailean Kneeland is the Business Services Director for the Department of State Police. Prior to Kailean being in this position he served as the Administrative Services Director and Chief

Financial Officer for the agency. He has been with the agency since 2003 and has a complete understanding of the various public safety program needs that will be served at the Central

Point office. Kailean has also overseen the successful completion of the agency's Pendleton

Forensics Laboratory, Baker City worksite, and Hines worksite projects in the 2017-19 biennium. During the 2019-21 biennium, he has led the agency's long term strategic master facility planning effort. A central part of that work has been to create facility standards across the agency with purpose-built facility projects to achieve the greatest benefits and cost savings for the State. Eric Manus, Facilities & Capital Construction Manager has over 20 years of experience managing all stages of traditional design-bid-build, CM/GC and Design-Build and project support service solicitations, contract negotiations, and contact administration. He was the lead project manager on the last three (3) major construction projects for the Oregon Department of Corrections, including but not limited to the CM/GC delivery of approximately 800,000 sq. ft. multi-building prison complex managing project budgets range up to $400 million. At the Oregon Military Department Mr. Manus managed new construction and major facility remodel/reconfiguration, conduct feasibility analysis, provided management oversight of for the design of multiple complex projects that involve new construction and remodel of owned and leased facilities, including the development Design-Build project of the Regional Training Institute at the former Umatilla Army Depot, the Tactical Unmanned

Air Systems facility on the active US Navy bombing range in Boardman, and led the effort for the Salem

Area Reginal Enhancement projects.

Sharon Domascbofsky Robert Johnson, Business Services Manager, Eric Manus, Facilities &

Capital Construction Manager and Major Joel Lujan Mike Turner, Gaming Enforcement &

Business Services Bureau Director, will work in tandem with Kailean Kneeland Jenny Cribbs to provide agency executive decision-making on the Projects.

6. Section II, FINDINGS REGARDING REQUIRED INFORMATION.

First paragraph of Section 8 revised as follows:

8. Funding Sources: OSP funds for the Projects, are outlined in the background information.

The total design and construction cost of each Project is estimated at (a) $25.9 $56.8 million for the Central Point project; (b) $52.6 $71.6 million for the Springfield Eugene Area Forensics

Laboratory and Medical Examiner Office; and (c) $11.6 $15.2 million for the Springfield Area

Command/Patrol office. DAS SPS and OSP anticipates cost savings on the Projects by using the DB method of contracting, as described in Section IV below.

7. Section IV, FINDINGS REGARDING SUBSTANTIAL COST SAVINGS AND OTHER

SUBSTANTIAL BENEFITS TO THE PUBLIC CONTRACTING AGENCY.

Paragraph 6.B revised as follows:

B. Construction budget and projected operating costs for the completed public improvement:

See Section II.1. The target GMP for construction of the Projects is initially assessed at (a)

$25.9 $56.8 million for the Central Point project; (b) $52.6 $71.6 million for the Springfield

Eugene Area Forensics Laboratory and Medical Examiner Office; and (c) $11.6 $15.2 million for the Springfield Area Command/Patrol office. The Projects are supported by State funding.

When compared with the standard DBB contracting method, the DB method may produce better Projects, save time and provide cost savings to the State through better management of the construction budget and operating costs.

Paragraph 7 revised as follows:

7. Post-Project Evaluation: DAS PS and OSP will evaluate the Projects in accordance with the requirements of ORS 279C.355 and OAR 137-049-0620(3), including actual Project costs, the GMP amount, the number of Project change orders, a narrative description of the successes and failures during the design, engineering and construction of the Projects and an objective assessment of the use of the DB process as compared to these Findings. In its evaluation, DAS PS and OSP will also compare the actual DB contracting costs to estimated costs if DAS PS and OSP had used a traditional DBB approach.

OSP has thoroughly reviewed the Findings of Fact included in Exemption S-10700-00000869 and verify that the amended changes outlined in this Findings of Fact amendment are the only changes to those

Findings. OSP submits that this amendment request meets all the criteria and requests approval of the amended Findings of Fact.

Robert Johnson, OSP Procurement Manager

DAS SPS on behalf of OSP submits that this amendment request meets all the criteria and requests approval of the amended Findings of Fact. If you have any questions please contact Brent Lutz, DAS

SPS Procurement Manager. 971-719-4346.

Sincerely, Brent Lutz

DAS SPS Procurement Manager

Reviewed by Department of Justice:

By: _______________________ Date:______________ Andrea Goodwin

Date3_af_date: 3/27/25