Request for Alternative Contracting Method_signed.pdf

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Memorandum

Date: October 27, 2025

To: Sarah Medary, City Manager

From: Michelle Hahn, Purchasing Analyst Kristi Hayden, PW Maintenance Division Director Rebecca Knecht, PWM Facilities Project Manager

Subject: Approval to use Alternative Contracting Method for Solar and Battery Storage Project at

Roosevelt Yard

ORS 279C.335 (1) requires, with certain exceptions, that all public improvement contracts be based on competitive bidding and, under ORS 279C.375, awarded to the lowest responsible bidder. The design and construction costs for the Solar and Battery Storage Project will exceed $100,000, which would ordinarily require an Invitation to Bid (ITB) procurement process. However, ORS279C.335(2) and City Rule 137-049-0620 permit the use of alternative contracting methods, which allows the City to consider qualitative factors in addition to cost, when such a method is deemed in the best interest of the City and community by either reducing costs or expediting the project completion.

Rule requires that the Contract Review Authority or its delegated Purchasing Agent approves use of an alternative contracting method.

Therefore, pursuant to the City’s Administrative Order No. 44-25-01-F, Section 137-049-0620, approval is requested to proceed with a Request for Competitive Sealed Proposals process and Design-Build Contract for the Solar and Battery Storage Project at Roosevelt Yard.

Project Description and Background

In September 2023, utilizing a Port of Portland permissive cooperative contract, the City partnered with McKinstry to perform a Technical Energy Audit at the Roosevelt Yard which resulted in identifying an opportunity to pursue a renewable form of emergency backup power for this critical facility.

Currently, each of the three utility power feeds have fossil fueled generator backup capability. In addition, there is a recently completed project at the site which has added a fourth utility power feed which will also need emergency power back up.

In June 2024, the City of Eugene applied for a grant for a solar and battery storage project through the Oregon Department of Energy’s (ODOE) Community Renewable Energy Grant Program (CREP). A grant of $1,000,000 was awarded to the City with the expectation that the City would use approximately $400,000 in matching funds. The City expects to use the direct pay option through the federal Investment Tax Credit, to be reimbursed for a portion of these matching funds. The grant was executed on January 13, 2025, with a condition that the project construction must begin within 12 months of the execution of the performance agreement. In addition, project construction must be completed within 36 months of the execution of the performance agreement.

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Due to unforeseen circumstances and the inability to utilize the permissive cooperative contract for the design and construction of this project, there have been critical delays in the process, resulting in the City’s request for an extension to the project construction date. ODOE has granted a 9-month extension to the start date but did not allow for an extension to the completion date.

A design-bid-build process is a traditional, linear construction method where design and construction are separated into distinct, sequential phases. First a competitive proposal process to hire a designer (architect/engineer) to complete the project’s design documents; then a second competitive bidding process to hire a contractor, and finally the construction phase of the project according to the completed design.

Even with the extension provided to begin construction, the time needed for the above processes will not allow the City to stay within the required timeframe to complete the project, thus a high potential of losing the $1,000,000 grant funds if the project is not completed by January 12, 2028.

A design-build process allows for a single competitive proposal process to hire both the design and construction services. This model also provides a single point of responsibility for the City and promotes better collaboration and communication between the design and construction teams, shortening the timeline considerably, and lowering the overall project risk factors.

The Competitive Sealed Proposals solicitation process will encourage competition.

The City’s RFP solicitation package will include a detailed project description, contract terms and conditions, selection process, evaluation criteria, role of evaluation committee, provisions for comments, and protest process and remedies available. The Purchasing Office proposes selecting a contractor using objective criteria under the following competitive process:

A. Advertisements, pursuant to ORS 279C.360(1), will be placed in the Daily Journal of Commerce and posted on OregonBuys.

B. A pre-proposal vendor conference will be held, open to all interested parties. During the pre-proposal conference and up to 10 days before the proposal due date, interested parties will be able to ask questions, request clarifications, and suggest changes in the solicitation documents if such parties believe that the terms and conditions of the solicitation are unclear, inconsistent with industry standards, or unfair and unnecessarily restrictive of competition.

C. An evaluation process will determine whether a proposal meets the minimum requirements of the RFP. These requirements include, but are not limited to, the contractor’s experience and qualifications, experience with value engineering or other changes, and cost.

D. The evaluation committee will use clear, objective criteria to evaluate and score the proposing candidates. The City will then proceed to negotiate and enter into a contract with the top ranked firm and authorize the project for construction.

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This request complies with the criteria outlined in ORS 279C.335(2):

A. It is unlikely the exemption will encourage favoritism in the awarding of public improvement contracts or substantially diminish competition for public improvement contracts. The procurement process of a design-build contract is considered best management practice and will not involve favoritism nor diminish competition. The selection process will be completed in a competitive, qualifications-based manner. Evaluation committee members will evaluate proposals based on clear, objective criteria.

B. The awarding of public improvement contracts under the exemption will result in substantial cost savings to the contracting agency. The design-build contracting method offers significant time savings and is the most effective approach for meeting the schedule and completion deadlines outlined in the CREP Grant Agreement.

Therefore, we respectfully request approval to use an alternative contracting method by way of a Request for Proposal and Design-Build Contract in order to see this project completed in a timely manner, using qualified design firms and contractors, and adhering to the requirements of the ODOE grant agreement.

Based on the Findings of Fact presented to me, I approve utilization of the alternative contract procurement method proposed.

Sarah Medary, City Manager

Date

Reviewed by:

Drew Pryor, Purchasing Agent/P2P Manager __________

Neil Obringer, Assistant Finance Director _____________

Twylla Miller, Chief Financial Officer _________________

DP

DP

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