| | | | | | | | | Resolutions - R7 A
COMMISSION MEMORANDUM |
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| | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | FROM: | Jimmy L. Morales, City Manager | | DATE: | March 22, 2017 | | |
| SUBJECT: | 1. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER TO AWARD AN AGREEMENT, PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 2016-090-KB, FOR DESIGN/BUILD
SERVICES FOR WEST AVENUE IMPROVEMENTS PHASE II SOUTH OF 14
STREET (PHASE II), TO RIC-MAN CONSTRUCTION FLORIDA, INC., WITH
THE GUARANTEED MAXIMUM PRICE (GMP) IN THE AMOUNT OF
$13,113,590.00; AUTHORIZING A TEN PERCENT (10%) OWNER'S
CONTINGENCY FOR THE PROJECT IN THE AMOUNT OF $1,311,359.00;
AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A DESIGN BUILD AGREEMENT WITH RIC-MAN
CONSTRUCTION FLORIDA, INC.
2. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY MANAGER TO AWARD AN AGREEMENT, PURSUANT TO
REQUEST FOR PROPOSALS (RFP) NO. 2016-091-KB, FOR DESIGN/BUILD
SERVICES FOR WEST AVENUE IMPROVEMENTS PHASE II NORTH OF 14
STREET (PHASE II), TO RIC-MAN CONSTRUCTION FLORIDA, INC., WITH
THE GUARANTEED MAXIMUM PRICE (GMP) IN THE AMOUNT OF
$30,243,063.00; AUTHORIZING A TEN PERCENT (10%) OWNER'S
CONTINGENCY FOR THE PROJECT IN THE AMOUNT OF $3,024,306.30;
AND FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A DESIGN BUILD AGREEMENT WITH RIC-MAN
CONSTRUCTION FLORIDA, INC.
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| | | | | | | | RECOMMENDATION
| Adopt the resolutions. |
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| | | | | | | | ANALYSIS
| On March 1, 2017, the City Commission was presented with the City Manager’s recommendation to award an agreement pursuant to Request for Proposals (RFP) No. 2016-090-KB (Item R7E) and RFP No. 2016-091-KB (Item R7F) to Ric-Man Construction Florida, Inc. (Ric-Man). Commission authorized the Administration to enter into negotiations with the top-ranked proposer, Ric-man Construction Florida, Inc.; further, should the Administration not be successful in its negotiations with Ric-man, authorize the Administration to enter into negotiations with the second highest ranked proposer, Lanzo Construction Co., Florida; and further providing that the final negotiated Guaranteed Maximum Price with the successful proposer shall be subject to the prior approval of the Mayor and City Commission.
On March 6, 2017, city staff met with Ric-Man representatives and successfully negotiated the price for both contracts as follows:
· RFP No. 2019-090-KB – West Avenue Improvements Phase II – South of 14th Street, Original GMP of $13,285,990.00 reduced to $13,113,590.00, at a savings of $172,400.00.
· RFP No. 2019-091-KB – West Avenue Improvements Phase II – North of 14th Street, Original GMP of $30,850,663.00 reduced to $30,243,063.00, at a savings of $607,600.00.
The total cost savings is $780,000 for both contracts. The ten percent (10%) owner’s contingency for each contract is $1,311,359.00 and $3,024,306.30 respectively.
Even though all proposers were qualified to perform the work, the level of detail submitted by Ric-Man’s proposal, indicated that they had performed extensive research pertaining to the development of the design, harmonization, utility coordination and sequencing of construction, which showed a clear understanding of most, if not all of the challenges associated with the project, translating to a better technical approach of work as described in the City’s design criteria. The significant and extensive research conducted by Ric-Man on both projects is clearly an advantage to the City, as the more knowledgeable the design/build firm, the lesser the risk faced by the City in completing the scope of work for the agreed upon price. In addition, the preparation of preliminary design documents was much more advanced which would allow for a more timely delivery of the project design. We believe that the 1.5% and 2% price differentials from the lowest price proposal to the highest ranked proposal are more than offset by the positive attributes of the highest ranked proposal. |
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| | | | | | | | CONCLUSION
| 1. After successful negotiations, the City Manager recommends that the Mayor and City Commission approve the resolution authorizing the Administration to execute a Design Build Agreement Ric-Man Construction, Inc., pursuant to Request for Proposals (RFP) No. 2016-090-KB for Design/Build Services for West Avenue Improvements Phase II South of 14 Street (Phase II), to Ric-Man Construction, Inc., with the Guaranteed Maximum Price (GMP) in the amount of $13,113,590.00; and authorizes a ten percent (10%) Owner’s Contingency for the Project in the amount of $1,311,359.00.
2. After successful negotiations, the City Manager recommends that the Mayor and City Commission approve the resolution authorizing the Administration to execute a Design Build Agreement Ric-Man Construction, Inc., pursuant to Request for Proposals (RFP) No. 2016-091-KB for Design/Build Services for West Avenue Improvements Phase II North of 14 Street (Phase II), to Ric-Man Construction, Inc., with the Guaranteed Maximum Price (GMP) in the amount of $30,243,063.00; and authorizes a ten percent (10%) Owner’s Contingency in the amount of $3,024,306.30. |
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| | | | | | | | KEY INTENDED OUTCOMES SUPPORTED Build And Maintain Priority Infrastructure With Full Accountability |
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| | | | | | | | FINANCIAL INFORMATION
| The cost of the related services, are subject to funds availability approved through the City’s budgeting process. Grant funds will not be utilized for this project. |
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| | | | | | | | Amount 1 | $500
$8,361
$67,781 | Account 1 | 301-0810-000356-00-410-522-00-0-00-26150
301-0810-061357-00-410-522-00-00-00-26150
305-0810-061357-00-410-522-00-00-00-26150 |
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| | | | | | | | Amount 2 | $52,000
$43,065 | Account 2 | 388-0810-000356-00-410-522-00-00-00-26150
388-0810-061357-00-410-522-00-00-00-26150 |
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| | | | | | | | Amount 3 | $28,800
$377,228 | Account 3 | 388-0810-069351-00-410-522-00-00-00-26150
388-0810-069357-00-410-522-00-00-00-26150 |
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| | | | | | | | Amount 4 | $530,000
$36,667,342 | Account 4 | 187-9615-000349-30-410-524-00-00-00-60197
Future Stormwater Bond Proceeds |
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| | | | | | | | Amount 5 | $18,333,671
$6,111,223 | Account 5 | Future Water and Sewer Bond Proceeds
Streetscape - Funding to be Determined |
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| | | | | | | | Legislative Tracking Public Works/Procurement |
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