HVO-PIERC_CMGC_Attch_2_SOW_v6.docx

Statement of Work (SOW) for Construction Manager as General Contractor (CMGC) Services USGS Facilities on Hawaii Island, Hawaii for HVO and PIERC

1. Background/Scope The U.S. Geological Survey (USGS) intends to design and construct two new facilities on Hawaii Island, Hawaii, to replace the USGS’ Hawaiian Volcano Observatory (HVO) facilities damaged during the 2018 eruption of Kilauea, and to collocate USGS’ Pacific Island Ecosystems Research Center (PIERC) with HVO. HVO is currently occupying a variety of scattered and unsuitable spaces after the previous facility near the caldera’s rim suffered serious damage, and PIERC’s facilities are in disrepair.

HVO consists of approximately 50 staff and volunteers and PIERC consists of approximately 53 staff and volunteers and a variety of space types are required. This includes private and open office spaces, conference rooms, laboratories (scanning electron microscope lab, rock lab, general lab), hazardous materials storage, field and safety gear storage, archives, fabrication space for instrumentation, warehouse, and operations/monitoring center. The two facilities are a main office/laboratory in Hilo and a field station in Hawaii Volcanoes National Park (HVNP). The facility in Hilo will also act as a continuity of operations site during future eruptions.

The main office/laboratory in Hilo is projected to be approximately 47,000 net square feet (NSF) northwest of the intersection of Nowelo St. and Komohana St on University of Hawaii at Hilo property.

Due to the loss of the original Observatory at the Kilauea Summit, and in order to facilitate continued in- situ monitoring and field studies in HVNP, the reestablishment of a permanent HVO field station in the Park is necessary. The field station needs to include open office space for approximately 15 staff on a rotating, non-permanent basis, to allow for rapid deployment of field gear, gas monitoring instrumentation, and staging for eruption response including UAVs. The field station is projected to be approximately 9,000 NSF to the west of Kilauea Military Camp on the former baseball field.

The scope of this contract includes building both facilities.

USGS has contracted with a separate Architect/Engineer (A/E) firm that is responsible for developing complete design and construction documents for the project. The A/E on this project is AHL, formerly Architects Hawaii Ltd., of Honolulu, HI.

1.1 Project Schedule

The dates identified below are for reference only and subject to change.

2. Purpose and Structure The Construction Manager as General Contractor’s (CMGC’s) tasks are divided into two distinct phases: design phase services and construction phase work. The construction work will be governed by the specifications and drawings prepared by the A/E. This SOW outlines the additional services the CMGC must perform.

This contract will be structured such that there is a firm-fixed price contract line item for design phase services, and an optional not-to-exceed contract line item for construction phase work. The CMGC must review and become familiar with the scope of services included in the A/E’s contract, especially the various standards, guidelines, policies, and documents the A/E is required to follow in developing the design and construction documents. This is vitally important during the design phase because, as set forth in more detail below, the main tasks of the CMGC during the design phase are to provide constructability reviews and cost estimation validation of the A/E’s design-related submissions. The goal is for the USGS to be able to exercise the construction phase option at or below the not-to-exceed price, with any savings shared 50/50 between the USGS and the CMGC. The CMGC’s share of savings, if any, will be included in the contract as a separate line item payable upon project completion.

Services are described below in general terms. Any services not specifically stated but which are necessary to achieve the goals of the project and accepted as industry-standard professional services for a CMGC project delivery method[footnoteRef:1] must be provided by the CMGC. Any exclusions or options must be clearly identified in the CMGC’s proposal to ensure all parties are in full agreement. [1: Also referred to as Construction Manager as Constructor (CmC) and Construction Manager at Risk (CMAR). For the purposes of this document, these terms are interchangeable.]

3. Design-Phase Services The A/E contract with AHL has already been awarded and schematic design has begun. Phase 1 solicitation will occur prior to the 35% design submission. Phase 2 solicitation will commence with the 35% design package, at which point potential CMGCs will propose a firm-fixed price for design phase services and a not-to-exceed price for construction. Award will occur prior to the 65% design submission, and the CMGC’s design phase scope will begin immediately upon award.

3.1 Collaboration

During the design phase, the CMGC must collaborate with the A/E on the design, constructability issues, schedule, cost, and risk. The goal of this collaboration is for the USGS to be able to exercise the construction phase option at or below the not-to-exceed price established at contract award, with any savings shared 50/50 between the USGS and the CMGC. The CMGC’s involvement during the design phase offers the project team the ability to identify current market conditions concerning labor and material availability, constructability issues, and any phasing or sequencing impacts.

It is expected that the CMGC and its subcontractors and consultants will communicate freely with the A/E and its subcontractors and consultants, and vice versa. This will ensure mutual understanding of the A/E’s design intent and the CMGC’s means and methods which enables greater certainty in pricing the project and resolves design errors and omissions early. This collaboration takes place during a time that does not significantly impact the construction schedule and therefore can result in expedited production and review of submittals and shop drawings.

3.2 Design-Phase Meetings

The CMGC must attend all the meetings listed in this subsection, and invite appropriate attendees depending on the subject matter. These meetings may occur in person at a location mutually agreeable to all parties in Hawaii, either Honolulu or on Hawaii Island, or virtually as may be required to comply with COVID-19 protocols.

3.2.1 Design-Phase Kickoff Meeting

The contract is expected to be awarded shortly before the 65% design submission. The CMGC must attend a project kickoff meeting as soon as possible after award with other members of the project team to review the project’s program, status of design, discuss goals, establish contacts and lines of communication, and begin initial project planning.

3.2.2 Bi-weekly Coordination Sessions

AHL has scheduled eight (8) bi-weekly coordination sessions between the 65% and 95% design submissions. The CMGC must attend all these meetings, and additionally be prepared to attend up to twelve (12) such meetings if necessary.

3.2.3 Program Review/Submission Review Meetings

The CMGC must attend program review/submission review meetings before the start of each of the design phases.

3.2.4 Ad Hoc Meetings

The CMGC must be prepared to attend such ad-hoc meetings as may be necessary to achieve the goals of the project and which can reasonably be anticipated as likely to be necessary in a project of this type and size.

3.2.5 100% Design/Pre-Proposal Meeting The CMGC must attend a program wrap-up meeting upon completion of the 100% design package to discuss anything that may be necessary before preparing a final, firm-fixed-price construction proposal.

3.3 Team Building

The CMGC is expected to assemble a team of key subcontractors who will be involved in this project throughout. These team members must attend the meetings described above whenever appropriate to the topic being discussed. The purpose of including these team members is to provide increased opportunities to identify and resolve any design-, construction-, or pricing-related issues during the design phase of the project. Requests for information and requests for equitable adjustments during the construction phase will be minimized or eliminated.

Prospective CMGCs must identify key subcontractors with their proposals and must use those subcontractors throughout the project. The CMGC must obtain the Contracting Officer’s written consent before making any replacements.

4. Design-Phase Deliverables

4.1 General

The CMGC must provide a written deliverable package based on the A/E’s design-related submissions at each of the following milestones: 65%, 95%, and 100%. Each written deliverable package is due to the Contracting Officer within three calendar weeks of the CMGC’s receipt of the A/E’s design submission. Deliverables must be submitted electronically as mutually agreed upon by the parties.

4.2 Content

For each design submission from the A/E, the CMGC must prepare a written report that separately addresses each of the following topics.

· CMGC team members’ participation

· Constructability review

· Cost estimation validation (except at 100%; see below)

· Proposed alternatives and savings opportunities

· Schedule analysis

· Construction work phasing and sequencing plan

· Early work package suggestions (except at 100%; see below)

· Risk For each submission, as a general matter, the CMGC must notify the USGS of errors, omissions, inconsistencies, or other issues that may potentially impact the project goals, the final price for construction, schedule, design quality, or scope. USGS will not entertain requests for equitable adjustments during the construction phase that result from any errors, omissions, or inconsistencies in the construction documents that were present in the construction documents at a previous milestone for which the CMGC prepared a constructability review; we expect all such issues to be resolved during the design phase.

4.2.1 CMGC Team Members’ Participation

Each report much include a section that: (1) names each major trade subcontractor, vendor, or supplier that the CMGC used or relied on in preparing the report; (2) provides a brief description of the services provided by each company; and (3) provides a brief description of the services each company will provide during the construction phase. Representatives of each company must be available to attend program review meetings after each submission.

4.2.2 Constructability Review

The CMGC must review the design submissions with reasonable care and advise USGS in writing of any errors, inconsistencies, inaccuracies, or incompleteness which may negatively impact cost, schedule, scope, or quality. The CMGC must provide recommendations on constructability, life cycle cost improvements, sustainability, LEED certification, project commissioning, systems analysis, functionality, enhancing operational flexibility, and minimizing labor or material shortages. The CMGC must also review design submissions for accuracy, completeness, sequencing, and coordination.

4.2.3 Cost Estimation Validation

The CMGC must review the design submissions and prepare an independent cost estimate in the same format and to the same level of detail as those prepared by the A/E at each design milestone. The purpose of this is for the USGS to have the benefit of two independent estimates at each design submission: one from the designer and one from the builder. AHL’s cost estimator is J.Uno & Associates, Inc.; the CMGC may not utilize the services of J.Uno & Associates in any capacity during this project. J.Uno & Associates is using CSI’s format as of the time of this writing. The CMGC and J.Uno & Associates must mutually agree on a standard format to be used once the CMGC comes on board, and the CMGC is expected to defer to J.Uno & Associates to the maximum extent practicable in doing so.

The USGS will reconcile the two estimates to ensure that the project being designed will be constructible at or below the not-to-exceed price established at contract award. The CMGC is expected to engage in the reconciliation process as necessary with the USGS and the A/E as part of regular program review meetings. If at any time the CMGC’s estimate exceeds the not-to-exceed price, the CMGC must propose alternatives that will deliver the project at or below the not-to-exceed price.

4.2.4 Proposed Alternatives and Savings Opportunities

The CMGC is encouraged to propose alternatives and identify savings opportunities with each cost estimate submitted. The earlier potential savings opportunities can be identified, the more easily they can be incorporated into the design. See 4.3.1 and 4.3.2 below.

4.2.5 Schedule Analysis

The CMGC must provide a detailed, time-scaled and computer-generated project schedule with activities representing each portion of the work for the entire construction period of the project. The schedule must be prepared using the critical path method (CPM) for the planning, scheduling, and reporting of the work to be performed. The CPM scheduling software must be capable of generating and depicting the longest path of the schedule network. Schedule tasks and milestones must accurately depict contractors’ means and methods required to complete the entire construction scope of work.

4.2.6 Construction Work Phasing and Sequencing Plan

The CMGC must submit a construction work phasing and sequencing plan addressing all the following topic areas:

· Construction phasing approach

· Use of any fast-tracking or multiple construction document packages to achieve cost or schedule efficiencies, improvements, or savings

· Schedules for award of subcontract construction packages; including procurement cycles, deliverable approvals, construction delivery, and testing/commissioning

· Temporary facilities and laydown areas

· Possible labor or material shortages

· Long-lead time items

4.2.7 Early Work Package Suggestions

During the design of the project, the USGS and the CMGC may agree that is in the best interests of the project to initiate early work packages. Any such early work packages must be for severable scopes and will be deductive from the overall not-to-exceed price. The CMGC is encouraged to suggest early work packages and is expected to consider any early work suggested by the USGS or the A/E.

4.2.8 Risk

The CMGC must identify any known risks and suggest mitigation strategies.

4.3 Content of the 100% Deliverable

The 100% deliverable package must include everything identified in section 4.2 above, except for cost estimation validation (4.2.3) and early work package suggestions (4.2.7). In lieu of cost estimation validation, the CMGC will submit a final firm-fixed-price proposal to construct the project; see 4.3.1 below. By the time the 100% package is complete, it is too late to take advantage of any early work opportunities, so this content can be omitted entirely.

4.3.1 Final Proposal to Construct

The final proposal to construct must be firm-fixed-price, in the same format and to the same level of detail as earlier cost estimates. The USGS may exercise the option to construct if:

· The final proposed price is equal to or less than the not-to-exceed price;

· Funds are available;

· The project as designed fills the USGS’ need; and

· Exercising the option is the most advantageous method of fulfilling the USGS’ need.

4.3.2 Shared Savings Incentive

The USGS and the CMGC will share any savings from the not-to-exceed price 50/50. The CMGC’s share of savings, if any, will be included in the contract as a separate line item payable upon project completion.

For example, assume the not-to-exceed price is $10M and the CMGC’s final proposed price is $9.5M. The shared savings is therefore $500K, and the CMGC’s share is $250K. The option to construct would be exercised at $9.5M with $250K obligated to the contract as a separate line item payable to the CMGC upon project completion.

4.3.3 Discussions

The parties acknowledge that it may be beneficial or necessary to negotiate a final construction price and agree to do so with each other in a collaborative spirit intended to deliver the project at a fair price to both. The CMGC may be required to attend one or more meetings with the USGS to this end.

4.3.4 Organizational Conflict of Interest

The CMGC will have the competitive advantage of extensive knowledge of the project and the USGS’ internal cost estimate and budgetary situation. Therefore, if the USGS does not exercise the option to construct, and instead issues a competitive solicitation within two (2) years of the completion of the design-phase services, the CMGC is excluded from submitting a proposal in response to said solicitation and is not eligible for award. Further, the CMGC may not participate at any level (consultant, partner, joint venture, subcontractor, etc.) in any other prospective contractor’s proposal.

5. Construction Phase Services Subject to the USGS exercising the construction option, the construction work will be governed by the specifications and drawings prepared by the A/E. The CMGC’s main task is to build the facilities. The CMGC is also expected to:

5.1 Construction-Phase Meetings

5.1.1 Construction-Phase Kickoff Meeting

The CMGC and all key subcontractors must attend a construction kickoff meeting prior to the USGS issuing the notice to proceed.

5.1.2 Groundbreaking

The CMGC may be required to support and/or attend any groundbreaking ceremonies that may be held.

5.1.3 Construction Progress Meetings

The CMGC must lead weekly construction progress meetings, generally held early in each week, for the duration of the construction phase, and prepare/distribute meeting minutes for all participants.

5.1.4 Ad Hoc Meetings

The CMGC must be prepared to attend such ad-hoc meetings as may be necessary to achieve the goals of the project and which can reasonably be anticipated in a project of this type and size.

5.1.5 Construction Excellence Peer Reviews

The CMGC must attend and support three (3) construction excellence peer reviews to be held at the jobsite. The first two meetings will be held at approximately 25% and 60% construction completion; the final will be at approximately 90% construction completion as a “lessons learned” session. Each meeting is expected to last a full day and must be attended by the CMGC’s project executive, project manager, and superintendent.

5.1.6 Turnover Meetings

The CMGC must attend one or more meetings with relevant parties to support the following turnover activities:

· Preparation for occupancy and training

· Commissioning

· Pre-substantial completion inspection

· Substantial completion inspection and punch list

· Final completion inspection These meetings may coincide with weekly construction progress meetings or they may be additional.

5.1.7 Ribbon Cutting

The CMGC may be required to support and/or attend any ribbon cutting ceremonies that may be held.

5.2 Submittal Processing

The CMGC must prepare and submit a submittal schedule in accordance with the Division 1 specifications of the construction documents. The CMGC must ensure that all subcontractors understand, agree to, and conform to their respective roles, responsibilities, and timeliness requirements for submittal processing.

5.3 Inspections and Testing

The CMGC must:

· Conduct all inspections and tests as stipulated in the construction documents, except for required independent third-party special inspections.

· Cooperate and coordinate with USGS and/or NPS inspectors, including any contracted third-party inspectors.

· Conduct OSHA construction safety inspections on a regular basis.

5.4 Requests for Information

A Request for Information (RFI) is necessary when any apparent conflict, ambiguity, error, or omission is found in the construction documents. As stated above at 3.3: “Requests for information and requests for equitable adjustments during the construction phase will be minimized or eliminated.” As stated above at 4.2: “USGS will not entertain requests for equitable adjustments during the construction phase that result from any errors, omissions, or inconsistencies in the construction documents that were present in the construction documents at a previous milestone for which the CMGC prepared a constructability review; we expect all such issues to be resolved during the design phase.”

That said, the CMGC is responsible for managing any requests for information (RFI) that may arise during construction. The CMGC is expected to:

· Review RFIs from subcontractors prior to pass through and resolve where possible without escalating.

· Submit RFIs immediately upon discovering an issue that requires USGS or A/E response.

· Submit clear RFIs which include a specific description of the issue and cite relevant drawings/specifications in need of clarification. Marked-up source documents are preferred.

· Identify possible solutions when appropriate and recommend a course of action.

· Identify price and/or schedule impact, if any.

· Immediately disseminate the USGS’ response to appropriate subcontractors and implement the proper course of action. However, in no event will the CMGC proceed with work that has a price and/or schedule impact without having first received written approval to do so from the USGS Contracting Officer.

· Maintain an RFI log summarizing each RFI and its resolution. The log must be updated and presented at each weekly construction progress meeting.

5.5 Payment Applications

The USGS will make progress payments not more frequently than monthly. The USGS and the CMGC must agree on a schedule of values (SOV) prior to the first payment application. Prior to invoicing, the CMGC must submit a payment application to the USGS consisting of an updated schedule of values and summary of subcontracts. The CMGC may submit a full invoice package once this has been reviewed and approved by the USGS and must make any required adjustments.

Regarding subcontractors, the CMGC must provide contact information for the accounts receivable office of all subcontractors and suppliers. The USGS will be randomly auditing prompt payment of the proceeds of progress payments to subcontractors and may reduce or suspend progress payments to the CMGC if discrepancies are found.

5.6 Turnover

The turnover process must be integrated into the schedule to provide opportunities for training, testing, balancing, commissioning, and remediation prior to occupancy.

5.6.1 Commissioning Support

The CMGC must provide all necessary support to the commissioning agent, which is a subcontractor under the A/E.

5.6.2 Preparation for Occupancy, Training

The CMGC must conduct training of operating staff in optimal operation and maintenance of the delivered facility. Training must commence 120 days prior to substantial completion. Training opportunities must be offered through multiple sessions to allow various facility staff to attend. All training sessions must be digitally recorded and consolidated into a set of training reference videos suitable for future training and re-training of property management and operating staff.

The CMGC must coordinate the receipt, inventory, and storage of material samples and spare parts necessary for facility operations as required by the construction documents.

5.6.3 Pre-Substantial Completion Inspection

The CMGC must provide all necessary support for a USGS inspection of the facility approximately 90 calendar days before substantial completion for the purpose of formally identifying work items not yet completed.

5.6.4 Substantial Completion Inspection, Punch List

The CMGC must request inspection upon substantial completion and provide all necessary support for said inspection. The result of this inspection will be the project punch list. The CMGC must submit a timeline for completion of all punch list items.

5.6.5 Final Completion Inspection

After completing the punch list items, the CMGC must request final inspection and provide all necessary support for said inspection.

5.7 Closeout

Final payment will not be made until the project is closed out. The schedule of values must include a “closeout” line item and value.

5.7.1 Operation and Maintenance (O&M) Manuals

The CMGC must gather, organize, and submit O&M manuals for all items incorporated into the project. Documentation must clearly explain system and equipment operation, calibration requirements, and maintenance procedures and intervals. To the maximum extent possible, such documentation must be electronic and named/organized such that appropriate documents are easy to find (e.g. files in folders, common readable names, etc.)

5.7.2 Warranties and Certificates

The CMGC must provide a one-year warranty on construction, commencing upon the date of final acceptance of the work; see FAR 52.246-21.

The CMGC must gather, organize, and submit warranty documentation for all items which carry a manufacturer’s warranty over and above the standard one-year warranty on construction. The CMGC will complete appropriate paperwork/registration to ensure that all such warranties are assigned to the USGS and will include information on procedures for making a warranty claim. As with O&M manuals, to the maximum extent possible, documentation must be electronic and named/organized such that appropriate documents are easy to find (e.g. files in folders, common readable names, etc.)

5.7.3 As-Built Drawings and Specifications

The CMGC must submit a set of “red-lined” as-built drawings and specifications to the A/E. The A/E will be responsible for completing a final as-built set.

END OF DOCUMENT

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