Item Coversheet

Resolutions - R7  A




COMMISSION MEMORANDUM

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.


RECOMMENDATION

Adopt the resolutions.

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.

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.

KEY INTENDED OUTCOMES SUPPORTED
Build And Maintain Priority Infrastructure With Full Accountability

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.

Amount 1$500 $8,361 $67,781Account 1301-0810-000356-00-410-522-00-0-00-26150 301-0810-061357-00-410-522-00-00-00-26150 305-0810-061357-00-410-522-00-00-00-26150
Amount 2$52,000 $43,065Account 2388-0810-000356-00-410-522-00-00-00-26150 388-0810-061357-00-410-522-00-00-00-26150
Amount 3$28,800 $377,228Account 3388-0810-069351-00-410-522-00-00-00-26150 388-0810-069357-00-410-522-00-00-00-26150
Amount 4$530,000 $36,667,342Account 4187-9615-000349-30-410-524-00-00-00-60197 Future Stormwater Bond Proceeds
Amount 5$18,333,671 $6,111,223Account 5Future Water and Sewer Bond Proceeds Streetscape - Funding to be Determined
Total62,219,971
Legislative Tracking
Public Works/Procurement

ATTACHMENTS:
Description
Resolution 1
Resolution 2
RFP 2016-090-KB Phase I Eval Scoring and Ranking
RFP 2016-090-KB Phase II Eval Scoring and Ranking
RFP 2016-091-KB Phase I Eval Scoring and Ranking
RFP 2016-091-KB Phase II Eval Scoring and Ranking