Findings RH CMGC.pdf

ATTACHMENT A

FINDINGS

ALTERNATE CONTRACTING PROCEDURE

CM/GC CONSTRUCTION CONTRACT

RALEIGH HILLS SCHOOL BUILDING REPLACEMENT & SITE IMPROVEMENTS

PROJECT

(a) BSD Staff finds that this alternate contracting procedure is unlikely to encourage favoritism in awarding public improvement contracts or substantially diminish competition for public improvement contracts.

The CM/GC will be selected through a competitive process in accordance with a Request for Proposals authorized by the Board of Directors. Pursuant to ORS 279C.360, a CM/GC solicitation will be advertised on the Daily Journal of Commerce, the OregonBuys procurement system, and the Beaverton School District procurement webpage in order to attract competitive proposals. The CM/GC proposals and interviews will be rated based on a predetermined list of criteria as required by ORS 279C.337 and the Attorney General’s Model Contract Rules. The District will enter into a contract with the highest-scoring, responsive and responsible Proposer .

(b) BSD Staff finds that awarding a public improvement contract for this project through the CM/GC method will likely result in substantial cost savings and other substantial benefits to the District.

In making this finding, staff have considered the type, cost, and amount of the contract and, to the extent applicable to the contract, the following:

A. Findings related to how many persons are available to bid: Because the procurement will be through a publicly-advertised request for proposals, CG/GC is a common type of procurement for projects of this size and type, and multiple firms in the local market are qualified to provide CM/GC services for this project, staff finds that granting this alternative contracting procedure will not unreasonably limit the number of firms available to bid,.

B. Findings related to the construction budget and the projected operating costs for the completed public improvement: Staff finds that the ability to select firms based on the firm’s performance history and experience on similar project type will positively affect the project outcome as it relates to cost by providing feedback on the design development phase, providing cost estimating services during design, and participating in the construction document phase of the design process. With the CM/GC participating in these phases they will be able to offer suggestions for improvement and make recommendations that will reduce costs, and ensure that the final design falls within the project budget. With the benefit of this knowledge, the CM/GC will also be able to guarantee a maximum price the District will pay to construct the project, which may result in savings accruing to the District. The current state of market cost volatility amplify the importance of CM/GC as a method relative to project budget and costs.

C. Findings related to public benefits that may result from granting the exemption: Staff finds that the ability to select firms based on the firm’s performance history will significantly affect the project outcome as it relates to schedule and value. Due to the unique restrictions of the site (e.g., unique grading, access, and other challenges), coordinating with multiple Authorities Having Jurisdiction, and the current market volatility, we believe that utilizing the CM/GC method will reduce the project challenges inherent with planning and executing a project planned to begin in two years with a twenty-four (24) month construction timeline. The CM/GC process allows the CM/GC to inform and recommend the best practices in sequencing of work and provide feedback related to cost of building systems and materials. This early involvement with the CM/GC will result in a better product and increased cost certainty through the design portion of the project.

D. Findings related to whether value engineering techniques may decrease the cost of the public improvement: Staff finds that granting this alternate contracting procedure will provide the most comprehensive team evaluation of all factors that affect the cost, quality, and schedule of the project, which may decrease the cost of the improvement. The CM/GC process offers a unique opportunity for value engineering that is not as effective through the traditional design-bid-build process, since the general contractor does not have the opportunity to suggest cost savings measures during the design process. An essential part of each construction project is the value engineering evaluation, which is the means used to determine the best project design that meets the needs and priority of the Owner, within the Owner’s budget and schedule constraints. Value engineering is done most effectively by a team consisting of the Owner, Architect, Consultants, and the CM/GC during design development and construction document completion.

E. Findings related to the cost and availability of specialized expertise that is necessary for the public improvement: Staff finds that no specialized expertise will be needed for this project.

F. Findings related to any likely increases in public safety: Staff finds that the ability to select firms based on the firm’s performance history will allow the District to select a contractor with a demonstrated record of safety. Construction operations will be taking place on site while needing to maintain and provide safe access to adjacent residential properties that are currently accessed through the school district’s property but will be provided with a dedicated access through the work completed.

G. Findings related to whether granting the exemption may reduce risks to the contracting agency, the state agency or the public that are related to the public improvement: Staff finds that granting this alternate contracting procedure will reduce safety risks to the School District, by allowing additional coordination related to the site staging and construction efforts.

Staff also finds that the CM/GC method will reduce the risk that the project budget is exceeded.

H. Findings related to whether granting the exemption will affect the sources of funding for the public improvement: Not applicable. Staff finds that granting this exemption will have no effect on funding sources for the project.

I. Findings related to whether granting the exemption will better enable the contracting agency to control the impact that market conditions may have on the cost of and time necessary to complete the public improvement: With the multiple of construction market factors that exist today in Oregon and beyond (e.g. COVID supply chain issues, completion of other projects, environmental issues that limit construction materials, shortage of qualified craftsman, inflation, etc.), establishing the best work sequence is crucial to accurately estimating the cost and schedule implications of this project. Staff therefore finds that selecting a firm through the CM/GC process allows the District the advantage of working with a CM/GC who has knowledge of market conditions and experience in finding the best people qualified for this work, and to provide accurate estimates for subcontracts. In addition, the CM/GC may plan for early procurement of goods and services where shortages, inflation, or other market conditions could increase costs under the traditional design-bid-build method.

J. Findings related to whether granting the exemption will better enable the contracting agency to address the size and technical complexity of the public improvement: Staff finds that granting this exemption will allow the School District to accept proposals only from contractors who have demonstrated considerable experience in delivering projects of similar complexity successfully.

K. Findings related to whether the public improvement involves new construction or renovates or remodels an existing structure: This project involves demolition of an existing structure while maintaining connections to existing site utilities, New Construction, and the integration of buildings and new site improvements. All of these factors involve a significant design element where the CM/GC’s pre-construction input will prove valuable.

L. Findings related to whether the public improvement will be occupied or unoccupied during construction: This public improvement will not occur in a building that is occupied;

however, maintaining access for adjacent properties currently utilizing school district property will be needed. The CM/GC method will allow for the contractor to assess its plan for maintaining this access during the pre-construction process.

M. Findings related to whether the public improvement will require a single phase of construction work or multiple phases of construction work to address specific project conditions: Staff finds that the project will have multiple phases of construction work consisting of public Right Of Way improvements in addition to building structure and on-site improvements. The CM/GC method allows for the District so assess the contractor’s plan for addressing these challenges, ensuring feasibility and coordination with design and feasibility prior to entering into a GMP agreement.

N. Findings related to whether the contracting agency or state agency has, or has retained under contract, and will use contracting agency or state agency personnel, consultants, and legal counsel that have necessary expertise and substantial experience in alternative contracting methods to assist in developing the alternative contracting method that the contracting agency or state agency will use to award the public improvement contract and to help negotiate, administer, and enforce the terms of the public improvement contract:

Staff will rely on their own experience, having successfully used the CM/GC method on many other large projects in the current and prior bond programs. In addition, architectural, engineering, and planning consultants with experience in alternative contracting will be retained for professional services. The District also relies upon outside legal counsel, appointed by the School Board to provide construction contracting legal advice. The combined expertise and experience of such staff, consultants, and professionals will oversee developing the alternative contracting method and its implementation including negotiating, administering, and enforcing the terms of the CM/GC contract.