A20_PPP_Vault_11_Access_Forum_06-16-14.pptx

An Overview of Electrical Contractor Services Contract for the Division of Design and Construction Project Management June 18, 2014

Good morning, I’m Giorgiana Chen.

I am a Contracting Officer in the Office of Acquisitions within the Office of Research Facilities, and most recently your Registrar for this Forum. We’re happy to see everyone here today and we thank you for coming.

Welcome to our Industry Forum for Electrical Contractor services, an NIH-sponsored event where interested parties have been invited to meet with program and contracting officials to discuss specific contract opportunities.

Before we begin, I’d like to review a few housekeeping matters: First, please verify that your cell phones or other devices are in silent or vibration mode. You may take calls outside the Auditorium. Second, the restrooms are adjacent to the Auditorium at each end of the lobby area. Additionally, the emergency exits are here and here (?). Finally, as this presentation progresses, should you have any questions, please write them down and save them for the Q&A segment at the end. After this Forum event, further questions will be answered ONLY during the solicitation phase.

Agenda Introduction Purpose Small Business Background The Clinical Branch, Division of Design and Construction Project Management (DDCM) and The Requirement Contracting Particulars Questions Meet and Greet

Giorgiana:

As the first item on our Agenda indicates, I would like to introduce our government personnel who are speaking today or here in attendance to assist.

Speaking today are:

Sharon Bruce - the Director of the Office of Acquisition, Office of Research Facilities Wayne Berry - a Small Business Specialist in the Office of Small and Disadvantaged Business Utilization (or OSDBU for short) at the Department of HHS Aaron Crawford - a Senior Contracting Officer and Team Lead in the Office of Acquisition, and the Contracting Officer for this requirement Nathan Adams - the Alternate Project Officer within the Clinical Branch, Division of Design and Construction Project Management, Office of Research Facilities

Also assisting today’s event are:

Howard Drogin - the Contracting Officer’s Representative for this requirement and a Project Officer within the Clinical Branch Praveen Agarwal - Chief, Clinical Branch Shane Deckert - a Project Officer within the Clinical Branch Gretchen Ludgate - a consultant to Government, assisting the project team with the acquisition of the requirement.

After this introduction, we will have a brief presentation of the HHS Small Business Program, followed by the background of this requirement, and a description of the requirement, with its possibilities and constraints. This will be followed by a discussion of considerations related to the Solicitation and Contract, to be followed by a Q&A segment.

We then plan to allow further opportunity for you to meet and greet each other to discuss the contracting opportunities. While government personnel will NOT be participating in these contractor–to-contractor conversations, these facilities are available for your use up until 1:00 p.m.

Purpose

To maximize small business opportunities for solicitation # NIHOF2014011, an Electrical Contractor services contract.

Giorgiana:

The contract opportunity for this Forum event is an Electrical Contractor services contract. This contract is anticipated to be awarded by the first quarter of Fiscal Year 2015, to the most highly qualified firm to replace four transformers and associated switchgear in Electrical Vault 11 on the 14th floor of the Ambulatory Care Research Facility (ACRF). Nate Adams, the Project Officer, will talk about the specifics of the project a little later in this presentation.

The specific terms of the contract will be addressed by my colleague, Aaron Crawford, Contracting Officer, later in this presentation.

Whether or not the contract is awarded to a small business, we are looking to maximize the opportunities for small businesses, either as prime contractor or as a subcontractor, or as a joint venture entity.

To further describe our desire for small business involvement, I would like to introduce my colleague, Wayne Berry, our Small Business Specialist for this requirement. Wayne…

Small Business Performance, Office of Research Facilities, National Institutes of Health

Wayne Berry, Small Business Specialist, Department of Health and Human Services (HHS) Office of Small and Disadvantaged Business Utilization (OSDBU) assigned to the National Institutes of Health and Health Research Services Administration

June 18, 2014

Hello, my name is Wayne Berry, and I am a Small Business Specialist for the Department of Health and Human Services’ Office of Small and Disadvantaged Business Utilization (OSDBU). I am one of three specialists assigned to NIH, along with Annette Owens-Scarboro, and Courtney Carter.

I want to thank Office of Acquisitions Director Sharon Bruce for creating this event, and the Division of Design and Construction Project Management for participating. It is refreshing to find both the Contracting and Program offices working together to maximize small business opportunities.

While we are providing you with an opportunity to meet and collaborate with other firms, all firms, small and large, will have equal consideration. The Government does not assume that only a large firm is capable of performing this contract.

Today I’m here to discuss the Department’s subcontracting goals and to report ORF’s performance in awarding contracts to small business so far this Fiscal Year.

HHS SUBCONTRACTING GOALS, FY 2014

Women-Owned Small Business (WOSB) 5% HUBZone Subcontracting (HUBZone) 3% Service-Disabled Veteran-Owned Small Business (SDVOSB) 3% Veteran-Owned Small Business (VOSB) 3%

SOURCE: http://www.hhs.gov/about/smallbusiness/sb2012goals.html

The subcontracting goals for HHS are approved by the Small Business Administration. A subcontracting plan is required for all contracts greater than $650,000 awarded to firms considered other than small business. This includes large businesses, universities, state and local governments and non-profit entities.

Small firms, or joint ventures between two small firms, are not required to submit a subcontracting plan. However, for construction contracts, they are required to perform at least 15 percent of the cost of contract, not including the cost of materials, with their own employees, in accordance with FAR 52-219.14. This particular procurement is for construction.

Office of Research Facilities awards to Small Business Fiscal Year 2014, for reporting period October 1, 2013- June 13, 2014

HHS Total SB Goal: 20.5%

Read slide.

DATA SOURCE: Federal Procurement Data System (FPDS).

In fact the source of all the data on the next few slides are from FPDS. It is important to note that the small business goals for HHS is 20.5%. Currently NIH awards nearly one third of all contracts to small business. ORF awards more than 60% of their eligible contracts to small business.

ORF awards to Small Business continued

SDB includes businesses in the Small Business Administration 8(a) program

HHS Total SDB goal: 5%

HHS Total SDVOSB goal: 3%

NIH overall has awarded $178,577,524, or 9.22% of contract awards to SDB.

NIH overall has awarded $20,722,000, or 1.21% of contracts awards to SDVOSB

ORF awards to Small Business continued

HHS Total WOSB Goal: 5%

HHS Total HUBZone Goal: 3%

It is important to note that we are in the third quarter of the year and ORF historically meets the hubzone goals.

NIH overall awarded $158,610,474, or 5.42% of all contracts to WOSB

NIH overall awarded $5,789,174, or .30% of all contracts to HUBZone.

DOING BUSINESS WITH HHS

HHS Budget in Brief (PDF - 146 pages) provides an overview of the HHS budget and how the budget supports the major initiatives of the Department.

You may find the Budget in Brief for 2015 and previous fiscal years by visiting this link: http://www.hhs.gov/budget/#brief.

Identify the HHS-Owned Federal facilities and seek out the Master Plans.

Attend the monthly ORF Vendor Outreach Events. Call Office of Acquisition at 301-402-0878.

Attend the monthly HHS Vendor Outreach Sessions to meet small business specialists from other operating divisions. You may register by visiting this link: http://www.hhs.gov/about/smallbusiness/

A good way to monitor sub-contracting opportunities is to watch HHS/ORF award announcements on FEDBIZOPS.

SOURCE, BUDGET IN BRIEF: http://www.hhs.gov/budget/ SOURCE, ORF VOS: Call Office of Acquisition at 301-402-0878 SOURCE, HHS VOS: http://www.hhs.gov/about/smallbusiness/

CONTACT INFORMATION

Annette Owens-Scarboro, Small Business Specialist assigned to NIH E-mail: annette.owensscarboro@nih.hhs.gov Telephone: (301) 496-9639

Wayne Berry, Small Business Specialist assigned to NIH and HRSA E-mail: wayne.berry@nih.hhs.gov Telephone: (301) 496-8023

Courtney Carter, Small Business Specialist assigned to NIH E-mail: courtney.carter@nih.hhs.gov Telephone: (301) 496-9639

Here is the contact information for the NIH small business office.

Please save all questions until the end of this presentation.

I will be available afterwards as well.

Now I will introduce Sharon Bruce, the Director of ORF’s Office of Acquisition, to talk about the specifics of this acquisition.

Sharon Bruce, Director Office of Acquisitions Office of Research Facilities

Good Morning!

Let me echo the welcome you have received. It is encouraging to see so much interest in our requirements.

I want to just follow up on Wayne’s presentation with some context and background surrounding this particular procurement.

Background

January 16, 2014 Market Survey Advertised in FedBizOps

February 6, 2014 Survey Responses Received

April 24, 2014 NIH Market Survey Evaluation

May 6, 2014 through Evaluation with HHS OSDBU Office May 22, 2014

May 29, 2014 Access Forum Notice Advertised in FedBizOps

Sharon:

In early 2014 ORF conducted a Market Search to: 1) gather information regarding the availability and capability of qualified small business sources; and 2) determine if this acquisition should be set-aside if enough small businesses exist to perform the requirement.

Based upon responses, our market research determined that insufficient numbers of qualified Small Businesses are available to perform the work.

However, the main purpose of today’s forum is to further verify if indeed there are qualified small businesses identified from this event.

Additionally, because the project requirements suggest there will be subcontracting opportunities, we have encouraged all contractors, particularly those who specialize in heavy steel erection and mechanical trades, to attend and meet the firms who are likely to compete as prime Electrical contractors.

I would like to now introduce Nathan (Nate) Adams, who is the alternate Project Officer, from the Division of Design and Construction Project Management, Clinical Design and Construction Branch.

The Clinical Branch, Division of Design and Construction Project Management, Office of Research Facilities and The Requirement

Nathan Adams Project Officer Clinical Design and Construction Branch

Thank you Sharon.

Hello, I’m Nate Adams.

I serve as a Project Officer for the Clinical Design and Construction Branch.

I would like to describe the role of the Clinical Branch, the scope of the requirement, and the project challenges.

What is the Clinical Branch, Division of Design and Construction Project Management?

The Division of Design and Construction Management (DDCM) oversees the design, construction, repair and renovation of all NIH facilities and utility systems and manages NIH real property.

DCCM Clinical Branch provides architectural, engineering, and construction management services required to design and renovate facilities within the Building 10 complex.

NATE:

DDCM is responsible for the design and construction management for all NIH sites and facilities - this includes our Bethesda, Poolesville, and Baltimore campuses in Maryland as well as campuses in Raleigh, N.C. and Hamilton, MT. Our main Bethesda campus has 75 buildings on more than 300 acres.

The Clinical Branch specifically focuses on projects within the Building 10 Complex.

What is Building 10?

Clinical Center, 1950 -1960

Building 10 Clinical Complex 2014

NATE

The world's largest clinical research hospital is a complex of buildings on the NIH campus known as Building 10 or the Clinical Center Complex.

Considered the jewel of HHS, some 1,200 credentialed physicians, dentists, and PhD researchers; 620 nurses; and 450 health-care personnel work in patient care units and laboratories in numerous areas of clinical study.

The three main components of the Building 10 Complex include the original 1949 Clinical Center, the 1981 Ambulatory Care Research Facility (known as the ACRF); and the 2002 in-patient Clinical Research Center.

(Use the pointer to show the progression of 10 to ACRF to CRC and where Natcher is located)

What is the ACRF?

Ambulatory Care Research Facility (ACRF), 1981

“Land-locked” Ambulatory Care Research Facility (ACRF), 2014

This project is located in the ACRF. Dedicated in 1981, the ACRF provides additional space for laboratories and for the Center's rapidly growing outpatient programs. Each year there are about 68,000 outpatient visits to the ACRF.

(Use pointer) As you can see, over the years since first constructed, the ACRF has become “land-locked”.

Project Goals To execute the Project in the safest manner.

To execute the Project at the most reasonable cost to the Government To complete the Project in the most efficient and expeditious manner To minimize the disruption caused by the Project to ongoing NIH functions

In summary, our goal is to execute this project safely, within budget, on schedule, and with no disruptions to research, patients or staff located in the building.

Why did I list safety first? Because this project requires an experienced Electrical Contractor to perform heavy electrical work with structural steel erection over live 13,800 volt transformers and associated switchgear.

In my more than 30 years here at NIH we have unfortunately suffered five deaths associated with accidents – one person was burned to death by arc-flash, two people were electrocuted, and two people were crushed to death. Very thankfully, the last of these was years ago.

Project Scope in Summary Heavy Electrical Work – phased replacement of four, 30-year+ old, oil-filled transformers and associated switchgear with new dry-type transformers.

Heavy Structural Steel Work – Erection of a new mezzanine over transformers.

Heavy Mechanical Work - Installation of three, new 10-ton vertical floor mounted Air Conditioning Units.

As you can see, the work is broken down into three trades – Electrical, Structural Steel and Mechanical. Electrical construction is the primary focus and scope of this project.

This Project Provides a Critical Service to the ACRF

Two transformers must remain in service at all times

This project requires a carefully orchestrated, phased transition for the two distinct equipment block movements; the transition from liquid to dry-type transformers making way for the new switchgear, and the subsequent transition from the existing switchgear to the new.

The replacement must be phased such that two transformers remain in service at all times.

Should the two transformers that must remain in service fail, power that feeds elevators, life safety components such as emergency lighting and stairwell pressurization, and specialty equipment in the labs and clinics would be without power.

Electrical Scope

Most work is located in the two-story Electrical Vault #11 on the 14th floor of the ACRF.

This is one of the 2000 KVA transformers which must be replaced.

Although the transformers were manufactured around the time that PCBs were outlawed, NIH will test all four transformers to verify that they do not contain PCBs. This should be confirmed before the issuance of the solicitation. If they do contain PCBs, the method of cutting-up the transformers and waste disposal will be significantly more challenging.

This shows all four of the transformers in Vault 11.

(use pointer) The three 2000 KVA normal transformers are in a line on the left of the screen and the one 500 KVA emergency transformer, which will be upgraded to 1500 KVA, is on the right.

This slide shows the switchgear that the four transformers feed. This switchgear also must be replaced.

This slide shows the bus duct that transfers the power from the transformers to the switchgear.

Two of the transformers must remain in-use throughout the construction. Therefore, some of this bus duct must remain intact during the construction period.

This is another view of Vault 11 showing the emergency transformer on the left, two of the normal transformers on the right and the side of the switchgear in the back.

I want to interject that these pictures were taken with a wide-angle lens; sometimes this gives the illusion of more space than is actually there.

These are large transformers weighing 14,500 lbs. filled; 11,125 lbs. when dry.

The ACRF is “Land Locked” Crane replacement of transformers is not possible No freight elevators are available Helicopter use over the Hospital complex for construction is prohibited Only Passenger elevator #26 is available for transporting materials / equipment to the 14th floor

Now I want to take a moment to address some additional challenges.

As seen in previous slides, in its present configuration the ACRF is completely landlocked. It is not possible to crane replacement liquid filled transformers to Vault 11 located on the 14th floor. There are no freight elevators in this area and the only passenger elevator that goes to 14th floor is limited in hoisting capacity to 4000 pounds.

Liquid filled transformers cannot be disassembled or re-assembled on site. Investigation with transformer vendors has indicated that dry type replacement transformers can be assembled, tested at factory, disassembled and transported in parts, rigged, installed, tested and commissioned in ACRF Vault 11 itself.

Passenger elevator 26 is the only means for the vertical transport of all materials and equipment involved in this project. The existing network transformers, emergency transformer, bus-way and switchgear will either be disassembled or cut-up for removal through the existing elevator. Again, elevator 26 is limited to a hoisting capacity of 4000 lbs.

This is the B-2 loading dock. All equipment and material entry and exit will be here.

Shortly after entering the building at the loading dock, we are presented with this normally locked and secured doorway. It is the pathway to elevator 26 on the B-2 level.

As a side note – (use pointer) - the boxes that you see are sensitive hospital storage and are monitored by multiple security cameras. Each contractor should warn all their workers not to tamper with government property.

The secured storage area you just saw leads to elevator 26 on the B-2 level. The entry and exit point for all materials, equipment and personnel at the bottom of the hoistway for this project.

This is elevator 26 on the 14th floor. The entry and exit point for all materials, equipment and personnel at the top of the hoistway for this project.

Unfortunately, elevator 26 is part of a bank of three passenger elevators. It’s the one on the left and this is the way it looks on floors B-1 through 13. It is still a passenger elevator and this project will not have exclusive use of it.

Dust, dirt or oil cannot be allowed to be tracked from this elevator to any of the intervening floors.

Vault 11 is only a small part of the mechanical space on the 14th floor.

(use pointer) It is actually straight back and turns to the left. Maintenance personnel must also use elevator 26 to access this area and also the mechanical area on the 15th level. So we cannot take the elevator out of service.

Structural Steel Scope

Now let’s focus on the structural steel scope: (use pointer before speaking)

If you look at the area where my pointer is, you are looking at a concrete beam in Vault 11. This beam will be one of the supports for a structural steel mezzanine which will cover the entire footprint of Vault 11. Now looking at my pointer, you can see where this mezzanine will be - approximately 18 feet in the air.

So remembering that the mezzanine will cover the entire footprint of the Vault 11, you will realize that it will be over all of the existing transformers, switchgear, and bus duct. All the new transformers, as well as the new switchgear, will be placed on this mezzanine, and two of the new transformers will have to be brought on-line and connected before the last two transformers on the floor slab can be de-energized and removed.

Explain the necessity to remove all-thread rod supporting the bus duct.

Mention that the Arc-flash that killed the worker was a phase-to-phase short on the 480 volt side of a network transformer. These bus ducts carry 3-phase 480 volt with the same energy.

Mechanical Scope

Three new floor standing 12-ton ACUs with Glycol Heat Exchangers on the roof

Now let’s address the mechanical scope.

In addition to the new transformers and switchgear, Vault 11 will be cooled by three new 12-ton floor standing air conditioning units with glycol heat exchangers on the roof. These will not be mounted on the mezzanine.

This is an Occupied Facility and Must Remain Operational The ACRF is an OCCUPIED Healthcare/Research Facility Treatment Rooms for a Variety of Illnesses Various Usage Research Laboratories Joint Commission Requirements ILSM and CRA Requirements Working Hour Restrictions

I want to emphasize that this is a occupied patient care facility. The area directly beneath Vault 11 is currently being utilized as Cancer patient treatment rooms. Patients with compromised immune systems, such as cancer patients, require strict standards for dust, debris, noise and vibration control.

An occupied BSL-2 laboratory is located on the 13th floor of the ACRF. Infectious disease research with controlled infectious agents will continue to be conducted throughout the project. Loss of control of the directional air flow, interruption of the lab vacuum system, or loss of electrical power could lead to the contamination of those working with these samples and those in adjacent spaces.

Also, all work must comply with Joint Commission requirements and NIH Interim Life Safety Measures (ILSM) and Construction Risk Assessment (CRA) established by the Division of Fire Marshall and the Office of Hospital Physical Environment and NIH Clinical Center Office of Facilities. And last, certain demolition and other noisy activities cannot occur during normal business hours.

What Are We Looking For?

A Prime Electrical Contractor Experience with heavy electrical construction Experience in overseeing multiple subcontractors Experience in occupied facilities Occupied Healthcare Facilities Occupied Research Laboratories Controlled Clean Environments

This Project is demanding and complex. Therefore, we require an Electrical Contractor with the technical and experiential expertise to perform heavy electrical , structural & mechanical construction within occupied, fully operational clinical, patient care, and/or specialized hospital spaces; or highly specialized research laboratory spaces; or controlled clean environments.

Now I’ll turn the presentation over to Aaron Crawford, the Contracting Officer.

Contracting Particulars Single Award Contract The NAICS code is 238210 – Electrical Contractors and Other Wiring Installation Contractors with the small business size standard of $14M Project Range $4M to $8M New Solicitation No. NIHOF2014011 Solicitation expected to be posted within 90 days The award date is expected by first quarter FY2015

Aaron:

This contract will be awarded as a single award, firm fixed-price contract with an anticipated cost between four and eight million dollars.

Also note that, in accordance with Federal Acquisitions Regulations clause 52.219-14, if the award is made to a small business, that small business shall perform at least 15% of the contract work with its own workforce.

We will post the requirement on Federal Business Opportunities (FedBizOps) under a different solicitation number than what was used in the market survey/ special notice. The solicitation number is now NIHOF2014011.

We anticipate posting the requirements within 90 days.

We anticipate awarding this requirement by the first quarter of fiscal year 2015.

Announcements

Before I take any questions, I want to make the following announcements:

We have reserved this room until 1 pm. You are welcome to remain here or assemble in the lobby area outside Balcony A to meet and greet each other to discuss contracting opportunities. However, please note that Government personnel will not be participating in contractor-to-contractor meet and greet meetings.

To help facilitate the meet and greet, when you received your badge at the registration table, we asked that you indicate with Red, Blue or Yellow dots whether you were a potential Prime Electrical Contractor, a large firm or a small firm. Red dots indicate potential Prime Electrical Contractor, blue dots indicate a large business, and yellow dots indicate a small business.

Shortly we will begin conducting our 15-minute ‘One-on-One’ meetings with those potential Prime Electrical Contractors who pre-registered in accordance with the Industry Forum registration instructions. These sessions will be conducted here at the front of the auditorium, at either of these two tables. Your firm was provided a specific time slot for your one-on-one. Please meet here a few minutes before your scheduled session and identify yourself to our staff.

OAMP Small Business Industry Day The June 30th event entitled “NIH & Small Business Synergy” will enable all small businesses, with a special emphasis on HUBZONE and Service Disabled Veteran-owned (SDVOSB) firms, to network and potentially partner in acquisition opportunities at NIH.

There will be a general session, a panel discussion, workshops, one-on-one discussions between vendors and NIH representatives, and Government and Industry sponsored booths.

Reservations are required. Only two (2) attendees per company may register for this event. Online registration is available through June 24, 2014.

For general information please contact Mr. Raymond Dillon at dillonr@od.nih.gov or 301-496-2507.

Aaron

And last, I wanted to inform you all that NIH’s Office of Acquisition Management and Policy (OAMP) is hosting a Small Business Industry Day here at the Natcher Conference Center on Monday, June 30, 2014 from 9 a.m. - 4:00 p.m.

Registration will open at 8:00 a.m.

Registration and contact information is posted on the screen for your convenience.

Questions

Any further questions will be answered only during the solicitation

Now back to the presentation. Are there any questions?

Meet and Greet Potential Prime Electrical Contractor – Red

Large Business – Blue

Small Business - Yellow

For your convenience here are the dot colors designating Prime, large and small businesses.

We'll also post the assigned time slots on the next screen for those firms that pre-registered for one-on-one meetings with Government personnel.

Copies of this presentation can be provided upon request to Giorgiana Chen, Contract Specialist.

Thank you again for your interest and participation.

One-on-One Meetings

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