KGC Design Build Guidelines - Attachment G.pdf

KING GEORGE COUNTY, VIRGINIA

GUIDELINES FOR THE SELECTION,

EVALUATION, AND AWARD OF

DESIGN-BUILD CONTRACTS

ADOPTED

OCTOBER 3, 2023

I. Introduction 3

II. Key Terms 3

III. Supervision of Licensed Architect or Engineer 4

IV. Written Findings 4

V. Design-Builder Selection Procedures 4

VI. Special Terms and Conditions Applicable to Design Build Contracts 8

I. Introduction

The competitive sealed bid process remains the preferred method of construction procurement, but a design-build (D/B) contract may serve the public interest given its particular facts and circumstances. Virginia Code Section 2.2-4382 grants King George County (the County), the authority to enter into a D/B contract on a fixed price or not-to-exceed price basis, provided that the County complies with certain requirements including adoption of procedures governing the selection, evaluation, and award of D/B contracts consistent with procedures adopted by the Secretary of Administration for utilizing D/B contracts (These Guidelines were developed based on the Design-Build (D/B) Procedures as Implemented by the Secretary of Administration effective January 1, 2020, available on the website of the Virginia Department of General Services, DGS, as harmonized with amendments to the Virginia Code through the date of adoption.). Such procedures shall also be consistent with those for the procurement by competitive negotiation in the Virginia Public Procurement Act, Virginia Code Section 2.2-4300 et seq. (as may be amended from time to time).

The procedures provided in these Guidelines for the Selection, Evaluation, and Award of D/B Contracts (Guidelines) may be only amended by act of the Board of Supervisors or by contrary, mandatory provisions of state or federal law; however, the County Administrator (or designee) in consultation with the County Attorney is authorized to the fullest extent permitted by law to implement these Guidelines and take action on behalf of the County (other than final award) with respect to any matter or instance in which the Guidelines reference “County.” Nothing in these Guidelines shall affect the duty of the County to comply with all applicable local, state, and federal laws and regulations.

II. Key Terms

Terms used herein shall have the meanings defined by County Code Section 2-21(d) and the Virginia Public Procurement Act. Additional terms are defined below for purposes of these Guidelines.

Complex project means a construction project that includes one or more of the following significant components: difficult site location, unique equipment, specialized building systems, multifaceted program, accelerated schedule, historic designation, or intricate phasing or some other aspect that makes competitive sealed bidding not practical.

Design-build contract means a contract between a public body and another party in which the party contracting with the public body agrees to both design and build the structure, or other item specified in the contract.

III. Supervision of Licensed Architect or Engineer

Prior to making a determination as to the use of D/B for a specific construction project, the County shall have in its employ or under contract a licensed architect or engineer with professional competence appropriate to the project who shall advise the County as to the preparation of the Request for Proposal (RFQ) and the evaluation of such proposals.

IV. Written Findings

Prior to issuing solicitation of an RFQ for a D/B contract, the Purchasing Manager, County Engineer, or designee must document in writing for a specific construction project that D/B contracting is appropriate and recommended by findings such as:

1. A D/B contract is more advantageous than a competitive sealed bid construction contract because it concerns a complex project or other justification; 1

2. The benefits to the County by using a D/B contract; and

3. Reasons why competitive sealed bidding is not practicable and/or fiscally advantageous.

The written findings should be included in the procurement file.

V. Design-Builder Selection Procedures

D/B contracts are generally intended to minimize the project risk to the County and to reduce the delivery schedule by overlapping the design phase and construction phase of a project. Procedures other than these D/B selection procedures may be used for procurement of construction services if authorized by applicable law.

D/B contracts shall be procured by a two-step competitive negotiation process, and guidance on methods for award may be found in the DGS Construction and Professional Services Manual.2 Unless the solicitation expressly states otherwise, the County will not be responsible for any expenses incurred by an offeror in preparing and submitting a proposal or in engaging in oral presentations, discussions, or negotiations. Such contracts shall be procured according to the following procedures:

1 For purpose of example, the DGS Construction and Professional Services Manual (2022 Edition) provides, “Design-Build is best suited to project types that have two (2) or more of the following characteristics: a. Relatively simple and straightforward. b. Incorporate integral engineering/engineered shop drawing components as primary systems in the project (example – metal buildings, precast parking structures). C. Are new construction.”

2 The Manual provides for two methods of award: cost basis or cost + technical basis as detailed further in Section

7.3.1 of the Manual.

A. The County Administrator or designee shall appoint an Evaluation Committee (Committee) of at least three people. At least one Committee member shall be a licensed professional engineer or architect.

B. A two-step solicitation process shall be the procurement method, except the two steps may be consolidated into a single procurement solicitation consistent with procurement by a competitive negotiation process if the contract price for all aggregate or the sum of all phases is not expected to exceed $200,000 (or such greater value as may be authorized by amendment of Virginia Code Section 2.2-4303).

1. Separate Solicitations for Two Step Stages of Selection of Qualified Offerors and then Receipt of Proposals from Qualified Offerors

a. Step 1: Request for Qualifications (RFQ)

i. Contents: RFQ must contain3 facility requirements, building and site criteria, site, and survey data (if available), the criteria to be used to evaluate RFQ Responses and other relevant information criteria to be used to evaluate RFQ Responses and other relevant information, including any unique capabilities or qualifications that will be required of the contractor. All offerors shall have a licensed Class A contractor registered in the Commonwealth of Virginia as part of the Project Team.

ii. Posting Requirements: The RFQ shall be posted in accordance with the current standards for the posting of public bids and current County terms and conditions for contracts for construction and professional services.

iii. Evaluation: The Committee shall evaluate each responsive RFQ response and any other relevant information to determine those offerors qualified with respect to the criteria established for the project. Evaluation criteria shall include the offeror’s experience for a period of ten prior years to determine whether the offeror has constructed, by any method of project delivery, at least three projects similar in program and size.

iv. The RFQ evaluation process shall result in a short list of three to five offerors to receive the request for proposals (RFP). An offeror may be denied prequalification only as specified under Virginia Code Section 2.2-4317 (including but not limited to

3 The DGS Construction and Professional Services Manual (2022 Edition) provides minimum suggested requirements for the development of “Bridging Documents” (schematics, technical specifications, and other details prepared by the County’s engineer, architect, or consultants) for use by the offerors. The Manual also includes forms that may be used if specified in the RFP for submittal of qualifications.

written notice of such denial), but the short list shall also be based upon the RFQ criteria.

v. At least thirty days prior to the date established for the submission of responses to the RFP, the County shall advise in writing each offeror which sought prequalification whether that offeror has prequalified. Prequalified offerors that are not selected for the short list shall likewise be provided the reasons for such decision. In the event that an offeror is denied prequalification, the written notification to such offeror shall state the reasons for such denial of prequalification and the factual basis of such reasons, and such notice shall be issued 30 days prior to an RFP issued in accordance with Step 2.

b. Step 2: Selection of a Construction Manager by Issuance of Request for Proposals (RFP) and Competitive Negotiation

i. Contents: The RFP will be sent to prequalified offerors selected for the short list (unless procurement is cancelled) with request for submission of formal proposals. The criteria for award shall be included in the RFP with price as a critical basis for award. If specified in the RFP, a Technical Proposal and sealed Cost Proposal shall be requirements of submittal, and the Cost Proposals shall be kept sealed and secured until evaluation of the Technical Proposals and design adjustments (if any) are complete.

ii. Review and Refinement of Technical Proposals: The Committee will review the Technical Proposals and it will inform each offeror of any adjustments necessary to make its Technical Proposal comply with requirements of the RFP. In addition, the Committee may require the offerors make adjustments necessary to incorporation project improvements and/or additional detailed information identified by the Committee during design development. Based on adjustments made to the Technical Proposals or at the initiative of an offeror, offerors may submit sealed Cost Proposal amendments by a deadline fixed by the Committee.

iii. Evaluation of Proposals: The Committee shall evaluate (and rank if Technical Proposals are to be considered as part of the award criteria) the Technical Proposals. After evaluation and ranking of the proposals, if professional services are part of the scope of work, the Committee shall (1) conduct discussion (interviews) with two or more offerors submitting the highest ranked proposals; or (2) should the Committee recommend and the Purchasing Manager confirm in writing that one offeror is clearly more highly qualified than the others under consideration, a contract may be negotiated and awarded to that offeror. If the D/B work consists solely nonprofessional services, evaluation shall be consistent with Virginia Code Section 4303.2(A)(3).

iv. Award: The Committee shall conduct negotiations consistent with Virginia Code Section 2.2-4303.2 (if applicable), open the Cost Proposals and apply the award criteria specified in the RFP, and make its recommendation on the selection of the D/B to the Purchasing Manager. The contract shall be awarded subject to approval of the Board of Supervisors to the offeror who is fully qualified and has been determined to have provided the best value in response to the RFP. Price shall be a critical basis for award of the contract. When the terms and conditions of multiple awards are provided in the RFP, awards may be made to more than one offeror.

v. Communication with Unsuccessful Offerors: The Purchasing Manager or designee shall notify all offerors who submit proposals which offeror is selected for the project by notice of award or notice of intent to award sent to a point of contact for each offeror. Upon request, documentation of the process used for the final selection shall be made available to the unsuccessful offerors.

2. Combined Two-Step Solicitation (When Appropriate)

a. Contents of Solicitation: An RFP shall consist of qualifications (distinct from a formal prequalification pursuant to Virginia Code Section 2.2-4317), experience, and other RFP criteria. If professional services are part of the scope of work, nonbinding cost proposals must be reserved until the discussion stage of short-listed offerors.

b. Evaluation: The Committee will evaluate and rank the proposals. After evaluation and ranking of the proposals, if professional services are part of the scope of work, the Committee shall (1) conduct negotiations with two or more offerors submitting the highest ranked proposals; or (2) should the Committee recommend and the Purchasing Manager confirm in writing that one offeror is clearly more highly qualified than the others under consideration, a contract may be negotiated and awarded to that offeror. If the D/B work consists solely of nonprofessional services, evaluation shall be consistent with Virginia Code Section 4303.2(A)(3).

c. Award: The Committee shall conduct negotiations consistent with Virginia Code Section 2.2-4303.2 and make its recommendation on the selection of the D/B to the Purchasing Manager based on its evaluations and negotiations. The contract shall be awarded subject to approval of the Board of Supervisors to the offeror who is fully qualified and has been determined to have provided the best value in response to the RFP. Price shall be a critical basis for award of the contract. When the terms and conditions of multiple awards are provided in the RFP, awards may be made to more than one offeror.

d. Communication with Unsuccessful Offerors: The Purchasing Manager or designee shall notify all offerors who submit proposals which offeror is selected for the project by notice of award or notice of intent to award sent to a point of contact for each offeror. Upon request, documentation of the process used for the final selection shall be made available to the unsuccessful offerors.

VI. Special Terms and Conditions Applicable to Design-Build Contracts

Any resultant contract must include that independent structural, special inspections, and final inspection be performed by a County designee or a third party other than a subcontractor retained by the CM to assure conformance with the plans and specifications.