Construction_Manager_at_Risk_(CMAR)_Delivery_and_Pricing_Structure.pdf

For more information, please visit our online supplier portal, located at https://procurement.opengov.com/portal/wsscwater

Washington Suburban Sanitary Commission, MD

2026-70022

CONSTRUCTION MANAGER AT RISK (CMAR) DELIVERY AND

PRICING STRUCTURE

RELEASE DATE: September 28, 2026

RESPONSE DEADLINE: October 26, 2026, 2:00 pm

Please refer to the project timeline in this document for all important deadlines.

#2026-70022

Title: Construction Manager at Risk (CMAR) Delivery and Pricing Structure

Table Of Contents

1. Request for Information

1.1. Scope of Work

1.2. Vendor Questionnaire

1. Request for Information

1.1. Scope of Work

1.1.1. STATUTORY AND CONTRACTUAL CONSIDERATIONS

Md. Code Ann., Public Utilities § 20-104(d)(2) prohibits WSSC from entering into a cost-plus-percentage-of-cost contract and requires WSSC to prohibit cost-plus-percentage-of-cost subcontracts under its contracts.

Accordingly, any CMAR delivery and compensation model considered by WSSC must be structured in a manner that complies with this prohibition.

For purposes of this RFI, respondents should assume that WSSC would not utilize a compensation structure under which the Construction Manager's fee, overhead, profit, or similar compensation is calculated as a percentage of actual reimbursable construction costs.

WSSC is therefore seeking information regarding alternative CMAR pricing structures, which may include, but are not limited to:

• Fixed-fee compensation;

• Lump-sum compensation;

• Cost reimbursement plus a predetermined fixed fee;

• Guaranteed Maximum Price (“GMP”) arrangements;

• Separately negotiated preconstruction and construction phase compensation;

• Fixed general conditions or general requirements;

• Open-book cost reimbursement subject to defined allowable-cost provisions and a fixed fee; and

• Other commercially accepted approaches that do not calculate compensation as a percentage of actual costs.

The inclusion of a GMP, standing alone, should not be interpreted as resolving the statutory restriction. WSSC is interested in understanding the underlying components of the pricing methodology and how contractor compensation would be established and administered.

1.1.2. INFORMATION REQUESTED

WSSC requests that respondents provide information addressing the following areas.

A. CMAR Market Feasibility

1. Is a CMAR delivery model commercially feasible where the Construction Manager's fee cannot be calculated as a percentage of actual construction costs?

2. Would this restriction materially affect contractor interest or competition for a WSSC CMAR procurement?

3. Are there particular project sizes, types, complexities, or risk profiles for which the proposed CMAR approach would be more or less appropriate?

B. Recommended Compensation Structure

4. Describe the compensation structure(s) your organization would recommend for a public owner that is prohibited from utilizing cost-plus-percentage-of-cost contracting.

5. Describe how the Construction Manager's fee, overhead, and profit should be established. Respondents should identify whether these amounts would be fixed at contract award, established when the GMP is negotiated, or determined through another methodology.

6. If a fixed fee is recommended, describe how that fee should be established and what factors should be considered in determining the amount.

7. Describe whether and under what circumstances the fixed fee should be subject to adjustment for changes in scope, schedule, construction duration, or other material changes.

C. Guaranteed Maximum Price

8. Describe how the GMP should be developed, negotiated, documented, and validated.

9. Identify the cost components that should ordinarily be included within the GMP and those that should be separately compensated.

10. Describe how contingencies and allowances should be established and administered.

11. Describe how savings below the GMP should be treated at project completion.

12. Describe how costs exceeding the GMP should be allocated between the owner and Construction

Manager, including circumstances under which adjustment to the GMP would be appropriate.

D. General Conditions, Overhead, and Profit

13. Describe the recommended treatment of:

• General conditions;

• General requirements;

• Home-office overhead;

• Project-site overhead;

• Profit;

• Insurance and bonding;

• Construction contingency;

• Owner contingency;

• Allowances; and

• Other indirect costs.

14. Identify which of these components should be established as fixed amounts, reimbursable actual costs, or otherwise incorporated into the GMP.

E. Open-Book Pricing and Cost Transparency

15. Describe how WSSC could maintain open-book pricing and cost transparency while avoiding a compensation methodology in which the Construction Manager's compensation increases automatically as actual reimbursable costs increase.

16. Describe recommended cost documentation, audit rights, accounting controls, and reporting requirements for an open-book CMAR arrangement.

17. Identify recommended definitions or limitations concerning allowable and unallowable costs.

F. Preconstruction Services

18. Describe the recommended compensation methodology for preconstruction services.

19. Identify typical preconstruction services that should be included in a CMAR engagement, including estimating, constructability review, scheduling, value engineering, risk management, procurement planning, subcontractor outreach, and development of bid packages.

20. Describe how WSSC should address circumstances in which the parties are unable to reach agreement on a GMP following completion of preconstruction services.

G. Subcontracting and Trade Packages

21. Describe recommended methods for competitively procuring subcontractors and trade packages under a

CMAR model.

22. Describe the Construction Manager's appropriate role in soliciting, evaluating, and selecting subcontractors.

23. Identify recommended owner oversight, approval, documentation, or audit controls for subcontractor selection.

24. Describe how subcontractor pricing should be incorporated into the GMP while maintaining cost transparency.

H. Public-Sector Experience

25. Identify examples of CMAR projects performed for federal, State, local, utility, or other public-sector owners using a pricing structure that did not compensate the Construction Manager through a percentage of actual costs.

26. For each relevant example, respondents are encouraged to identify:

• Public owner;

• Project type;

• Approximate construction value;

• Compensation methodology;

• GMP methodology;

• Treatment of fee, overhead, general conditions, contingency, and savings; and

• Lessons learned.

Respondents may provide sample contract provisions, pricing schedules, GMP exhibits, or other documents that demonstrate the referenced approach, provided the respondent is authorized to share such information.

1.1.3. ADDITIONAL INDUSTRY COMMENTS

Respondents are encouraged to identify any additional commercial, contractual, procurement, scheduling, risk-allocation, bonding, insurance, subcontracting, or market considerations that WSSC should evaluate before proceeding with a CMAR procurement.

Respondents may also recommend alternative project delivery or pricing approaches that could accomplish similar objectives while complying with WSSC's statutory and regulatory requirements.

1.1.4. RESPONSE FORMAT

To facilitate WSSC's review, respondents are requested to organize responses generally in accordance with the sections identified above.

Responses should identify:

1. Company name and business address;

2. Primary point of contact;

3. Relevant CMAR and public-sector experience;

4. Responses to the questions contained in Section 4;

5. Relevant project examples; and

6. Any supporting materials the respondent believes would assist WSSC's market research.

Respondents are not required to provide pricing for a specific WSSC project as part of this RFI.

1.1.5. RFI DISCLAIMER

This RFI is issued solely for information, planning, and market research purposes. It does not constitute an

Invitation for Bids, Request for Proposals, or other solicitation for the award of a contract.

Responses to this RFI are not offers and cannot be accepted by WSSC to form a binding contract. WSSC will not award a contract based upon responses to this RFI.

Participation in this RFI is voluntary. Responding or declining to respond will not, by itself, affect a firm's eligibility to participate in any future WSSC procurement.

WSSC makes no representation that it will issue a subsequent solicitation or utilize CMAR as a project delivery method. If WSSC elects to proceed with a future procurement, the terms, conditions, evaluation criteria, project delivery methodology, and pricing structure will be established in the applicable solicitation.

Respondents are responsible for all costs associated with preparing and submitting a response to this RFI.

WSSC will not reimburse respondents for such costs.

Information obtained through this RFI may be used by WSSC to develop procurement strategies, specifications, scopes of work, contract provisions, pricing methodologies, and future solicitation requirements.

Respondents should clearly identify any information they consider confidential, proprietary, or otherwise protected from disclosure and provide the basis for such designation. Any such designation will be addressed in accordance with applicable law.

Nothing contained in this RFI should be construed as a request for respondents to provide a legal opinion concerning WSSC's statutory authority. WSSC is seeking industry and commercial information regarding potential CMAR structures that could operate within the legal parameters identified by WSSC.

1.2. Vendor Questionnaire

1. RFI Response*

Please download the below documents, complete, and upload.

• RFI_-_CMAR.docx

*Response required https://government-project.s3.us-west-2.amazonaws.com/309021/e6584a33-312f-42be-8c9f-e25c384571a5_RFI_-_CMAR.docx