J-4 Statement of Work - Independant Cost Estimating for BSI REV 0.pdf

Statement of Work REVISION 0

Long Baseline Neutrino Facility (LBNF)

Independent Cost Estimating

For Conventional Facilities to be constructed in Lead, South Dakota

Background

The Long-Baseline Neutrino Facility (LBNF) Project will provide facilities to enable a world-class program in neutrino physics that can measure fundamental physical parameters, explore physics beyond the Standard Model and better elucidate the nature of matter and anti-matter. Specifically, LBNF will build a new high-intensity neutrino beam at the Fermi National Accelerator Laboratory (Fermilab) aimed at the Sanford Underground Research Facility (SURF), 1,300 km away, where it will build a neutrino detector.

The experiment will be optimized for precision measurement of neutrino oscillations with the goal of searching for charge parity-violation in the neutrino sector, as well as making other precision oscillation measurements.

SURF is owned by the State of South Dakota and operated by the South Dakota Science and Technology Authority (SDSTA) which is currently executing an Early Science Program utilizing state funds for laboratory development and DOE funds for facility operations. SDSTA staff is comprised of technical, business, and operations personnel.

DOE will fund the LBNF Project for design and construction of its far site conventional facilities to house the far detector. Excavation (EXC) is expected to complete in mid-2024, allowing for Building & Site Infrastructure (BSI) scope to begin immediately afterward. Final design is complete and bid packages are being prepared for a number of sub-subcontracted work scopes that will be competitively bid for the BSI scope. Several other packages will be proposed to be performed by the existing Construction Manager/General Contractor (CM/GC), a Joint Venture of Kiewit and Alberici (KAJV). To ensure that the government receives fair and reasonable pricing for this uncompleted work, a reconciliation process has been developed and used successfully during the excavation work scope. This work scope is to provide independent cost estimating and support for negotiation of these self-performed bid packages, as well as for future change orders arising from either differing conditions or scope changes. All BSI scope is described in the attached drawing package and basis of design report. The excavation

Scope of Work

An indefinite quantity, indefinite delivery (IDIQ) will be established for the Independent Cost Estimating services needed for BSI. Time and Material task orders will be issued for specific work tasks.

This scope of work will include performing independent cost estimates for the following scope packages as defined by Kiewit Alberici Joint Venture (KAJV) to be self-performed.

1. Bull Gang Crew: Includes crew and equipment necessary to support the other work included in the BSI scope of work. The primary focus of the bull gang is to receive deliveries at the surface, prepare the deliveries for shipment underground, transport items to the shaft, receive them at the 4850L (~5,000 feet underground) and deliver them to the work areas for all trades working underground. The Bull Gang also provides for general site cleanup and road-generated dust control, and supplements snow removal with hand-shoveling and/or small equipment near KAJV offices. The package also includes installation of rock anchors for support of equipment installed by others (conduit, pipe, etc) to avoid other sub-subcontractors needing to secure the specialized tools and training for this effort.

2. Underground Civil/Concrete: The majority of concrete placement underground will be performed as part of the ongoing excavation. Remaining concrete to be performed by KAJV in this self-performed bid package includes housekeeping pads for electrical and mechanical equipment, and the mezzanine/concrete roof of the masonry building within the central utility cavern. These elements are described as part of the drawings starting with U1-FD-SS. Masonry work is not included in this package, only concrete placement.

3. Underground Structural Steel/Metal Fabrication: Includes all steel scope described in the drawings starting with U1-FD-SS.

4. Cranes and Hoists: The project is considering whether to require installation of large bridge cranes and monorail hoists within the detector caverns prior to the start of the main BSI scope.

If this is pursued, there is a subset of work that would be self-performed by KAJV to support the installation of the cranes and hoists by the crane and hoist supplier. This would include transport of materials, supervision and engineering. It may also include management of other trades to provide temporary power and/or install a subset of the BSI scope to support the cranes and hoists.

5. Change orders: If change orders to the above packages are warranted due to differing site conditions or directed changes from FRA, FRA may elect to request the ICE team to utilize this process to negotiate the change value. FRA may also request assistance with review of changes to KAJV’s sub-subcontractors.

The Independent Cost Estimate (ICE) consultant is to review a work description and drawing package provided by FRA to develop an independent cost estimate for comparison with KAJV’s proposal for each package. These estimates should also include a brief narrative of the base assumptions and risks included within the estimate. The process is described in the attachment “LBNF ICE Process”. Previous use of this process identified benefits to establish meetings for discussion of the estimates. The ICE is to participate in an initial two-hour reconciliation meeting per scope package to facilitate common scope understanding, either in person or via teleconference at FRA discretion. A second one hour meeting will follow one week later to discuss the cost breakdown structure proposed by the CM/GC at least 2 work days prior to the meeting. This meeting will establish the necessary time to develop comparison estimates. A third meeting will be scheduled approximately 3 business days after all estimates are received, during which time the ICE will develop a comparison spreadsheet of the estimates and identify primary differences for discussion (regardless of whether the 10% threshold is met). The outcome of the third meeting is likely to require adjustments by both parties (ICE and KAJV). A follow-up meeting shall be scheduled for 1 week later to discuss changes made. This process will continue until the 10% threshold is met or FRA determines to direct KAJV to competitively bid the scope. Each estimate iteration shall include a record of adjustments made, both descriptively and in terms of cost. The goal of all meetings is to ensure the scopes are aligned, rates are reasonable, and risks are appropriately captured.

Travel Requirements

The Independent Cost Estimate Consultant (ICE) is to include one trip to Lead to perform a scope walk with KAJV and FRA, physically walking through the areas where work will be performed and improve the common understanding of the work to be done. Additional trips may be requested as part of the reconciliation process.

Technical Deliverables

The deliverables for each package will include:

• Independent construction cost estimate in at-year dollars. An AACE Level 1 estimate is expected.

The estimate will be developed using a cost breakdown structure (WBS) provided by LBNF. A listing of assumptions used to create the cost estimate and risks captured within the estimate will be included.

• Updated estimates based on reconciliation discussions.

• Final memorandums for each package capturing the primary discussion points and recommending award or rejection of each package.

Anticipated Schedule

The planned schedule to award each package is as follows. Note that this includes a 1-month review by FRA and DOE between the recommendation and award. The ICE may be asked to provide input into his review process depending on questions that arise:

1. Bull Gang Crew: Planned award August 2023. This package is most likely to require multiple iterations, so plan to start this process at least four months prior, or April 2023.

2. UG Civil/Concrete: Planned award is October 2023. This package is relatively straightforward, so plan for 3-month process beginning July 2023.

3. UG Structural Steel: Planned award February 2024. Also a straightforward scope, so plan for 3 months beginning November 2023.

4. Change Orders: Work is scheduled to begin in June 2024 and conclude by March 2026.

Attachments:

Excavation Drawing Set

BSI Drawing Set, Surface

BSI Drawing Set, Underground

BSI Basis of Design Report

KAJV CM/GC Contract

LBNF ICE Process

KAJV Estimated Schedule (not baselined)