LCC_CMGC Notice of Exemption-B15_Findings of Fact_1.28.2025~1.pdf

Lane Community College

DRAFT FINDINGS OF FACT

January 28, 2025

RECOMMENDATION FOR EXEMPTION FROM COMPETITIVE BIDDING, AUTHORIZE USE OF

CONSTRUCTION MANAGER/GENERAL CONTRACTOR (CM/GC) ALTERNATIVE CONTRACTING

METHOD FOR THE BUILDING 15 PUBLIC SAFETY RENOVATION AND ELEVATED PLATFORM

REMEDIATION PROJECT

Background:

Given the critical timeline for the Building 15 Public Safety Renovation, B12 Demolition and Major Maintenance, and the associated Elevated platform remediation and civil site access, parking lot, and storm system improvements (Projects), the comprehensive project scope, and due to the complexity of the campus program integration and interconnected and dependent construction phasing to accommodate current program needs in a major building renovation as outlined in the April 15, 2024 Feasibiity Report by Pivot Architecture, it is recommended by staff that the college use the Construction Manager/General Contractor (CM/GC) construction delivery method with a Guaranteed Maximum Price (GMP). The use of this method requires that a specific exemption from the standard competitive bid process for a general contractor be granted by the Board.

In the past, Lane Community College has awarded public works projects on the basis of competitive bidding for a general contractor to the responsible bidder with the lowest responsive and responsible bid. In October 2021, the Board adopted the Community College Rules of Procurement (CCRP), which allows the exemption of a specific contract from competitive bidding requirements utilizing Alternate Contracting Methods such as CM/GC based on approval of certain findings. Those findings must show compliance with Oregon State Statute 279C.330 and shall include other information listed in Exhibit A.

Exemptions for this specific type of alternative contracting, called Construction Manager/General Contractor (CM/GC), have been granted for many government agencies.

For example, Lane Community College has used this alternative contracting method on the following projects: the Health and Wellness Building 30, Building 2 Renovation, Buildings 4 & 5 Renovation, the Downtown Campus, the Building 11 Renovation, the Center for Learning and Student Success, the Central Plant Project, the Building 18 Renovation, Health Professions Building 32, Major Florence Renovation, B16 Lab Renovations, and the new advanced Technology Building (ITEC Building 33) projects. Here is a list of other agencies that have used this alternative contracting method: Portland Commubity College, Chemeketa Community College, and Clackamas Community Colleges, the cities of Eugene and Springfield, the Oregon University System, Eugene School District 4J, and the Eugene Water and Electric Board.

To date, the college has utilized the CM/GC method on a dozen projects, and the results have been favorable to the college. The projects have met or exceeded all of the project goals and confirmed the findings. Four current LCC projects, the new Health Professions Building, Florence Center Major Renovations, the New iTEC Building 33 and Building 16 Major Renovation projects are utilizing the CM/GC process.

The CM/GC RFP process can be issued in parallel with the findings of fact schedule according to ORS 279C.335(5)e.

The CM/GC process starts with the selection (by Request for Proposals) of a CM/GC firm that acts as both construction manager and general contractor for the project. The CM/GC will enter in to contract for preconstruction services only and will begin by carefully reviewing the project design and providing estimates and constructability reviews to the team, which may improve the design, and should result in decreased project costs. After this review, the CM/GC will submit a guaranteed maximum price (GMP) and full performance/payment bond for the work, the majority of which is performed by qualified subcontractors selected through competitive bids.

Based upon the completion of the CM/GC contract LCC is required to complete an evaluation or report on specific criteria and to identify how the project compared to the original findings of fact. This post-project evaluation requirement can be found in ORS 279C.355.

General Scope:

Scope description based on conceptual design report by Pivot Architefure and College Planning date April 15, 2024. All projects are interconnected programs and are linked in both phasing and construction planning. Refer to Charters for each of the interconnected projects below.

• Building 15 (B15) Public Saftery Renovations

• Elevated Platform Remediation (connected to B15)

• Site Access and parking lot, storm system Improvements (connected to B15)

• Building 12 demolition (current Public Safety department resides and needs relocating)

Phasing:

The concept proposes construction in multiple potential phases.

Requested Action:

Grant a specific exemption from the competitive bid process for a general contractor to allow the use of the Construction Manager/General Contractor method for the Building 15 Public Safety Renovation, B12 Demolition, Elevated platform remediation and civil site access, parking lot, and storm system improvements (Project).

Exhibit A

FINDINGS IN SUPPORT OF AN ALTERNATIVE CONTRACTING PROCESS FOR THE BUILDING 15

PUBLIC SAFETY RENOVATION AND ELEVATED PLATFORM REMEDIATION PROJECT

1. BACKGROUND INFORMATION

Employing the CM/GC method is the best way to overcome the problems presented by this major renovation project. Solutions to design, current market escalation and supply chain issues, sequencing, safety, disruption, and budget challenges will emerge from a coordinated architect/contractor team. The design/bid/build method of project delivery cannot match the advantages of the CM/GC method for this project.

2. FINDINGS

Pursuant to ORS 279C.335, the Board may authorize an exemption to the competitive bidding process if: a) it is unlikely to encourage favoritism or diminish competition and, b) it will result in substantial cost savings to the college. In addition, the Community College Rules of Procurement require providing information about certain issues listed under c) below.

a. The college will utilize a Request for Proposal (RFP) process for consideration and selection of the CM/GC for this project. The RFP will be advertised statewide in Oregon local paper and web outlets like BidLocker. Criteria for final selection will include, but not be limited to, price, CM/GC firm experience (including experience of the proposed project team, similar project experience, project approach, firm capacity), plan for project completion (with focus on plans for completion within budget and on schedule), experience with sustainability and safety plans, experience with implementing CBA goals and local participation planning.

The college will require the CM/GC to competitively bid qualified sub-contractors in compliance with all applicable state and federal laws. The college will be participatory in this sub buy-out process throughout.

The college may allow the CM/GC to secure trade partners through a subcontractor RFP selection process if it is justified and demonstrated to be in the college’s best interest to do so.

The College may utilize the median scoring method whereby the median pricing obtains the highest score. The College may use this determination for preconstruction fees, % fees and/or general conditions costs.

b. Awarding these public improvement contracts under the exemption may result in cost savings to the college based on (1) obtaining CM/GC input on the design of the project early as part of the collaborative team, (2) possible early completion of the project phasing or components of the project, and (3) having the CM/GC involved in this technically complex project early during the design process. Use of the CM/GC method provides the college with protection against loss of time and cost of redesign and re-bidding if construction bids exceed the budget. Additionally, the use of the CM/GC process will most likely result in cost savings to the college in that there will be more efficient utilization of college staff and private consultants.

c. ORS 279C.335 requires the contracting agency to provide the contracting review board (LCRB) with information about the following:

A. How many persons are available to bid: Facilities staff will have met with several contractors who are available and interested in proposing on this CM/GC project.

Based on recent inquiries and past RFP responses, staff anticipate three or more RFP responses.

B. The construction budget:

B15 Renovation= $1.95M Elevated Platform Remediation= $1.5M Site Access and Parking Lot= $600K B12 Demolition= $5.4M Storm Improvements= $200K

C. Public benefits: The CM/GC method provides several public benefits. Many of the benefits stem from including the contractor at an early stage of the project where they have the time and position to make contributions to the project and avoid expensive mistakes. The contractor becomes an early collaborative member of the team to work together to achieve an agreed-upon GMP. This method provides a higher likelihood of producing a quality building that is efficient and less expensive to maintain and operate over the long run.

D. Value engineering: The CM/GC method brings the contractor into the project as an early partner in the design process allowing the contractor to recommend ideas for value engineering and constructability. The contractor will work with the design team to select building systems and construction methods that best utilize local craft labor expertise.

E. Specialized expertise required: The CM/GC method enables the owner to select a contractor based on the special expertise required by the project as well as the price for these complex campus renovations. This project require special expertise in the areas of elevated structural construction, project management of phased scheduling to accommodate academic schedules, cost control, implementing CBA goals, sustainability, materials and subcontractor procurement, value engineering, constructability, HVAC systems, and construction detailing.

F. Public safety: The CM/GC method gives the contractor sufficient time to understand the operation of the college, the restraints of the site and identify potential safety hazards and make plans to eliminate or reduce them.

G. Reduced risk: According to the Oregon Public Contracting Coalition Guide to CM/GC Contracting 2002 (CM/GC original white paper for Oregon), “The collaborative approach of CM/GC also reduces risk to the owner”

H. Funding sources: The use of the CM/GC method has no discernable impact (positive or negative) on the source of project funds.

I. Market conditions: The CM/GC method enables the contractor to know what materials, equipment, and services the project will need in advance of the completion of contract documents and building permitting. Given the current competitive construction market, escalation, inflation and current supply chain volatility, early involvement of the CM/GC can coordinate bid packages that address long-lead procurement items, encourages local supplier and trade involvement, balanced with regional commercial subcontractors to ensure competitive involvement in areas that require special expertise not found in the local community.

J. Technical complexity: The CM/GC method is particularly well suited for projects that are technically complex because it brings the owner, architect, and builder together before the design is completed. Technical complexities for the project include:

The current public safety program resides in Building 12(B12). Since B12 is scheduled to be demolished the college is relocating the program to reside in a renovated B15 project. Attached and required improvements for B15 are upgrades to site access and a new parking lot and remediation of an attachwd elevated platform from the original campus development. These improvement will most likely require enhancements to the current storm system. All of this is considered as one project due to interconnectedness and will be managed and constructed by the eselected CM/GC firm.

Given these technical complexities, there are likely to be changes associated with the construction plan along the way. The CM/GC method provides more flexibility to respond to changes in a cost-effective way.

K. Building 15 Renovation Project is both new construction and remodel: The new and major renovated spaces for public safety space requirements will take place while adjacent academic buildings remain fully operational. Structural, civil access, mechanical, electrical, plumbing and other system replacements will require modifications to existing campus infrastructure and could impact broader campus operations and require careful phasing of construction an demolition. The CM/GC method is especially relevant for this type of project due to the additional complexities associated with projects in or near occupied buildings.

L. The facility will be occupied or unoccupied during construction: Portions of the facility are to remain occupied during construction and demolition to limit the need for specialized temporary spaces and carefully planned phasing.

M. Single-phase or multiple phases: This project will benefit from multi-phasing opportunities. Unique needs of the Public Safety program cannot be met elsewhere on campus. These programs will require a multi-phased approach to ensure the delivery of these unique programs. Balancing these elements with cost and the overall schedule of construction is an element with which a CM/GC can assist during the design and construction phases.

N. Experience with alternative contracting methods: Lane Community College has several employees and a technical consultants under contract with in-depth experience with administering alternative contracting methods

END OF FINDINGS