Design Build Industry Day Q and A.pdf

DESIGN BUILD INDUSTRY DAY QUESTIONS

1. What can you do to expedite submi al approvals and reduce red tape?

Acknowledged, We will try to work be er at answering the ques ons as they come in versus all at once and we recognize that the expecta on to complete the response is within a short window. Contract Documents specify review periods and Contractors should consider those me frames in the schedule.

2. What is the plan for QA of the Design Build Contractor’s products?

The QA plan will be in accordance with the USACE standards and Regula ons in addi on to the specific requirements established in the contract documents.

3. Is the district establishing a PMD or Integrated Project Office (IPO) or field office?

Not at this me, as we are an established District for Puerto Rico and the Virgin

Islands. There will be mul ple construc on field office as the construc on contracts con nue to be awarded.

4. How will the district perform community outreach/engagement before & during the project(s)?

USACE has been engaging with communi es during the past years through community mee ngs, technical workshops, mee ng with Non-Government Organiza ons, flyers and social mee ng posts. USACE will con nue to engage with the communi es as projects progress. Caribbean District has recently awarded a risk reduc on contract specific to the Rio Puerto Nuevo Flood Risk Management Project that is expected to improve community engagement both during design and construc on.

5. Is USACE using internal resources for the current phase for the preliminary design & es mate?

Yes.

6. With that (Ques on #5), how is period of performance being informed? By me, by phase, 7A or full since escala on will be key?

By Phase.

7. Soils & Materials Laboratories

a. How many labs has USACE cer fied in PR?

There are currently 6 Cer fied labs in PR.

b. Can they process all tests required by the specs?

They can do most and the few that they cannot do they will send to the states as it may not be cost effec ve to do in PR.

USACE will be building their own Quality Assurance Laboratory which will be used by the BBA-18 Supplemental Projects (Rio Puerto Nuevo, La Plata, Arecibo). This is with the inten on to leave the local laboratories for the use of contractors.

8. What is USACE doing to deal with the lack of construc on manpower?

We are engaging with the local industry. We are aware that industry associa ons are seeking different opportuni es to mi gate the impact of manpower through training and appren ceship programs.

9. What is the driver for Design Build? Schedule?

Currently, we are exploring all contract structures that could benefit our projects.

Numerous factors could contribute to the final determina on including contract execu on, work schedule, and overall quality.

10. How will prelim engineering?

In house resources (USACE)

11. How does going to DB impact recent TORN process for contract 7 that was issued under

JAX District Contract?

Impacts to current efforts is not yet known but industry partners will be kept up to date as decisions impac ng any compe on are made.

12. Will DB firm be selected on qualifica ons, or will there be a price component?

DB contracts are considered construc ons contracts. As such, any design build effort will follow standard source selec on procedures (generally best value tradeoff for contracts of this complexity), not Brooks Act procedures.

13. For DB Step 3, Prelim DSN & Cost es ma on, will you use consultants to get this done?

Leaning on exis ng JAX IDIQ?

In house resources (USACE) will be used for Prelim DSN & Cost Es ma on

14. For DB procurement, do you plan to build a new MATOC pool for DB Teams?

We are exploring op ons for a DB MATOC but it is unlikely that the MATOC would be used for these large projects

15. The phases of DB in the slide show seemed to allude to a selec on of design-builder, design, then construc on contract award. Is this the intent to award a lump sum contract at design builders’ selec on or a phased contrac ng process where final price is defined at design comple on?

We are exploring all poten al structures for any contract. As it pertains to the DB procedures outlined above, there are three primary structures that can be considered:

i. The first would be tradi onal DB build structure where the price is established up front and the design and construc on contract is awarded together.

ii. The second is also a tradi onal design-build structure but would allow for a cost incen ve and corresponding ceiling price on the construc on por on of work to be nego ated to a firm fixed price once the design is adequately advanced to do so.

iii. The third would be the progressive structure outlined above where the construc on and design contracts are awarded separately but in parallel, which would allow for a construc on during design support base and construc on execu on op on, which will follow the ceiling price format to be nego ated to a firm fixed price prior to execu on.

16. Can you discuss how USACE envisions the design review & comment resolu on process for a DB project?

We would use Dr. Checks with Comment Resolu on Mee ngs in the same manner they would be reviewed in a Design Contract.

17. Will USACE buy proper es (real estate) before giving NTP to contractor?

Yes, If a Construc on Contract was to be awarded as Design Build, Construc on

NTP would likely not be issued un l the required Real Estate has been acquired.

18. Who is responsible of permi ng?

Any endorsements, NEPA compliance or permi ng preconstruc on award

(during design phase) is the responsibility of USACE/DNER. During construc on, any permi ng is responsibility of the Construc on Contractor.

19. When will a decision to go DB be finalized?

USACE is currently evalua ng if Design Build is feasible for the projects within our

AOR.

20. Do you plan to break out the 8.5% of set aside work out of every contract? Or how will that be determined?

Small business goals apply to all contracts at the individual contract level. The goals will be included in the solicita on requirements and will be an evalua on factor for considera on for award.

21. The sample task had u lity reloca on, but the task is a small geographic area. What limits on reloca on will there be or what coordina on with the en rety of the u lity pathway?

The Design Contractor would be responsible for ge ng the endorsements from the u lity agencies such as PRASA.

22. For Caribbean District -

a. Is there an annual acquisi on strategy, share of Mil Con & O&M (FSEM) planning & design workload?

b. Share of regulatory workload?

c. Share of Civil Works planning & designing workload?

d. Will it be CSRA? Design Quality, contrac ng goals?

e. MATOC or SATOC(s) for design?

f. Design-Bid-Build vs DB for construc on?

Yes, while not previously required, we do have an established Overall Acquisi on Strategy (OAS) for FY25. This is currently going through final approval and will be made available through SAM some me in October. It includes considera on of all workload and projected approach to the degree it is known. The document will be updated throughout the year to include decisions on contrac ng approach as they are made.

23. Beyond the topic of DB, does the district have any comments on energy resiliency projects in its forecast (ERCIP, solar, power, plants…)?

Two Microgrids projects have been awarded and a third is under design development. The role of the Caribbean District for this program is limited to construc on support. There are others in the early stages of planning and Design.

24. Has the cost es mate for RPN contract 7 been updated? If so, when?

Yes, we are currently doing an update.

25. Is there considera on to break contract 7 into a por on that will be competed as SB set-aside?

All project approaches are evaluated to determine the structure that allows for the most fair considera on for award and efficient means of execu on. To this end, we are currently reviewing all contract formats to determine our best fit.

26. Is Caribbean District contrac ng using JAX AE MATOC or pu ng in a new AE IDIQ?

Currently JAX AE MATOC capacity is for projects that were already approved. Any new acquisi ons not on the approved list, will be contracted separately. At this me, the Caribbean District is already working to put a new MATOC in place.

27. Will you look at combining AE Civil Works & MILCON in the same MATOC?

This is a feasible op on which we are exploring; however, the decision for combining will be discussed within the Project Delivery Team (PDT).

28. How much input does the agency or Federal Sponsor have on when you do the project?

(PM)

They are involved from the beginning of the Design.

29. Who has influences with agencies?

We remain open to considera on and concerns from all our stakeholders, partners, and the general public. In terms of local agencies, this will be dictated by their requirements and agency constraints.

30. How long is permi ed for batch plant to be set up on private land?

This is dependent on a number of variables associated with the project and will be outlined in the project requirements.

31. Is the DB a higher risk for the Contractor?

There are elements to DB that represent both increases and decreases to risk.

There is a lower likelihood of design conflict during construc on and an expected review process based on the direct rela onship between designer and builder lower cost and schedule risks as well as quality disparity. However, there is an element of increased risk in that the general contractor assumes ownership of the design to a degree. Risk to the designer is the same in either method.

32. Will the DB be feasible for the meline of the project? Example: If the design build is not completed or approve, will USACE start all over and solicit the project again?

Required approvals will be coordinated up front and will follow the same meline as DBB method. As far as comple on of work, the risk of successful comple on will be assessed prior to a determina on to execute a DB contract and will only be determined viable if the risk-to-risk tolerance is adequately aligned.

33. Why Design Build?

See response to Ques on #9.

34. Will we consider FFP vs DB?

We intend to execute a FFP contract whether DB or DBB.

35. Will the DB effect the meline of the project?

DB presents both posi ve effect and risk to the schedule. For contract execu on, it does increase the complexity of work and the review process, which may increase the meline. However, this is offset when considering that it is a single process compared to design-bid-build, which has two separate procurement phases. For execu on of work, it may impact the schedule to produce design as the general contractor is included in discussions and reviews. However, the GC will be able to move into construc on earlier in the rela ve meline and the reviews during the design phase will be offset by a reduc on in changes during construc on. Overall, while the ini al award may see slight delays, the overall project meline should be reduced.

36. Will being a contractor for Geothermal be a conflict of interest for bidding on the DB Project?

Only the Designer of Record (DOR) is objec vely prohibited from considera on for construc on award. However, the degree involvement impacts eligibility for construc on award will be dependent on considera on of any advantage that involvement offers and would have to be reviewed in considera on of all factors.

37. What are the design inten ons?

Please review previous responses.

38. Do you as a district have a DB SME (Subject Ma er Expert)?

We have numerous personnel with considerable design build experience.

39. Will you consider going Best Value vs FFP (Firm-Fixed-Price)?

The intent is to u lize Best Value source selec on procedures to award a Firm Fixed Price contract.

40. Will you be borrowing against capacity from JAX?

If the contract proceeds under current DBB procedures, the design will be placed against the exis ng Jacksonville MATOC

41. Do you feel like as a district that you have the resources to handle the capacity?

Yes.

42. Will you be hiring consultants for tle 2 work?

The NFS conducts tle searches once we provide them with descrip ons of the RE areas/info required.

43. What is the long-term plan for the power stability?

USACE has not been assigned/tasked for a long-term power stability mission for

Puerto Rico.

44. Will you be using capacity from other districts?

Please refer to Ques on #40

45. What is the bonding requirement going to be?

At this me, the an cipated bonding capacity will be equal to the contract value, but there are ongoing discussions to determine if this amount should be reduced.

A determina on will be made prior to solicita on.

46. What is the MILCON project forecast?

TBD, Refer to Ques on #42.

47. Will the Escala on Clause be included in the contract?

We are not an cipa ng including EPA clauses in the contract at this me, but welcome feedback that may support its inclusion.

48. For Small Business, could we divide the Contracts so that small contractors can afford the bonds? Can the contracts be divided to a size where local contractors can manage them?

Refer to ques ons 20, 25 and 45. Maximizing compe on with emphasis on inclusion or local and small business is a focal point of the acquisi on planning process and this will always be a key factor in our decisions.

49. For the DB, can it be an open process where price is adjusted as me progresses?

For a project of this complexity, a cost or level of effort contract would not be allowable from both a risk and budgetary perspec ve. We may consider EPA if adequate interest and jus fica on is received, but it is not an cipated at this me.

50. What percent of the DB contract is actually Design? How can someone who has no Designer be included in the process?

For civil works DB design there is not a limita on on the design por on of the work. It will be dependent on preliminary design and overall complexity of work required.

The intent is not to exclude offerors. We highly recommend exploring opportuni es for forming partnership, joint ventures, or mentor protege rela onships with designers with experience in Government/USACE design work.

51. Can the cost of infla on be included in the Bid Submi al?

If the reference is to cost growth a er award - see ques on 49 and 47. If this ques on is in reference to graduated proposal pricing under alternate bid schedule procedures, this is not an cipated at this me, but can be considered if we an cipate excessive burden in award meline from proposal.

52. Can there be a more reasonable me to answer in Dr. Checks?

Responses to design ques ons are generally standardized but this can be considered at the project level. Please submit this ques on during the solicita on process.

53. For future construc on projects the Construc on designs must be coupled to the reality/availability of Puerto Rican materials? When reques ng alterna ve material how will SAA improve the decision-making process?

Subs tu ons due to non-availability can be considered by the oversight team at any me within the constraints of performance and impact to the design. Any concerns known prior to proposal should be raised during the solicita on RFI process, but considera on can also be given a er award if needed.