It is recommended that the Mayor and City Commission approve the City Manager’s recommendation to negotiate with OHLA Building, Inc., the sole proposer for Request for Qualifications (RFQ) No. 2023-461-ND for construction manager at risk services (CMR) for the Miami Beach Police Department (MBPD) Headquarters Renovation Project. The Resolution requires that the preconstruction services agreement and the project's guaranteed maximum price (GMP) be subject to approval by the Mayor and City Commission.

The solicitation is currently under the cone of silence.

In November 2018, Miami Beach residents approved the General Obligation Bond Program, which includes funding for public safety and security improvements. Among the projects in this bond issue is the renovation of the existing Miami Beach Police Department headquarters building at 1100 Washington Avenue.

On June 6, 2019, the City issued an RFQ for architectural and engineering design services for the MBPD Headquarters Renovation Project to provide the complete design and construction documents and related services necessary to implement the Project. The architecture firm of Leo A. Daly was selected for the Project, and a contract for architecture and engineering services was executed with the Consultant on March 27, 2020.

On August 12, 2022, the City issued Invitation to Bid (ITB) No. 2022-316-ND for construction services for the Project. However, no bids were received in response to the ITB. After an industry review meeting where bidders shared thoughts on improving the solicitation to attract a larger pool of bidders, the City revised the methodology for completing the required work from design-bid-build to construction manager at risk. Staff believes the construction manager at risk methodology can yield more efficient and cost-effective results as the construction manager can work concurrently with the design team and the staff to address any budget concerns or project complexities prior to receiving bids from subcontractors.

Through RFQ 2023-461-ND, the City requested proposals from construction manager at risk firms with the capabilities and experience to provide preconstruction services and construction phase services via a Guaranteed Maximum Price (GMP) for the implementation of the Police Department Headquarters Renovation Project.  Work required under this RFQ shall be performed in accordance with the approved design for the Project. It will include alterations to all five floors of the existing MBPD Headquarters building at 1100 Washington Avenue.  The successful firm must demonstrate an ability to provide multi-disciplinary management in scope definition/validation, cost estimating, construction scheduling, quality control and assurance plan, building code review/inspection, constructability review, closeout, and warranty services.

On June 28, 2023, the Mayor and the City Commission authorized the issuance of Request for Qualifications (RFQ) No. 2023-461-ND for Construction Manager at Risk (CMR) for the Police Department headquarters renovation project. On June 30, 2023, the RFQ was issued. A voluntary pre-proposal conference was held to provide information to proposers submitting a response on July 17, 2023.  One (1) addendum was issued. The Procurement Department issued bid notices to 21,976 companies through the City's e-procurement system, with 88 prospective bidders accessing the advertised solicitation. RFQ responses were due and received on August 14, 2023. The City received a sole proposal from OHLA Building, Inc.

Based on information gathered during the industry review meetings held after the prior solicitation resulted in no bids, staff believes there are several issues as to why the solicitation did not attract more bidders. Primarily, the issues relate to the complexities of performing construction work in an high-level security building that will remain staff during the renovations, including the complexities of scheduling construction phases and the work in such a manner that minimal staff disruption is experienced.

On September 8, 2023, the City Manager appointed the Evaluation Committee via LTC # 398-2023. While only one proposal was received, the Evaluation Committee nonetheless convened on September 19, 2023, to consider the proposal and the bidder’s qualifications. The Committee was comprised of Rick Clements, Chief of Police (Retired), Police Department; Francisco Garcia, Division Director, Facilities and Fleet Management Department; David Gomez, Division Director, Office of Capital Improvement Projects; and Thais Viera, G.O. Bond Program Assistant Director, City Manager's Office. The Committee was provided an overview of the Project, information relative to the City's Cone of Silence Ordinance, and the Government Sunshine Law. The Committee was instructed to score and rank the proposal pursuant to the evaluation criteria established in the RFQ.

The Evaluation Committee determined that OHLA Building, Inc. was qualified to perform the work (see Attachment A). In particular, the Evaluation Committee gave OHLA high marks for its experience, which includes hospital work and other sensitive facilities similar to the police station environment. OHLA Building is a local licensed general contractor that provides construction management and preconstruction services to build and renovate healthcare, education, sports, and assisted living facilities, as well as other cultural, institutional, and commercial facilities. OHLA Building has proposed to partner with other qualified firms to deliver to the City a high-quality project. OHLA Building and its subcontractors have experience working together which minimizes issues between project partners. OHLA Building, Inc. has more than 1,600 engineering and construction professionals from coast to coast. The team has provided construction management at risk services to various critical emergency operations facilities in South Florida, such as Jackson North Medical Center, South Miami Hospital, and Mount Sinai Medical Center.

Following approval of this item, staff will negotiate contract terms with OHLA, including preconstruction services and a final guaranteed maximum price (GMP) for the work. The preconstruction services and the GMP will require approval by the Mayor and City Commission. The project will be funded by the Miami Beach Police Department (MBPD) Headquarters Renovation G.O. Bond's with a total approved construction budget of $12,511,257.

Based on the foregoing, it is recommended that the Mayor and City Commission approve the Resolution authorizing the Administration to negotiate with OHLA Building, Inc., pursuant to Request for Qualifications (RFQ) 2023-461-ND, and authorize the City Manager and City Clerk to execute the agreement upon successful negotiations. The Resolution requires that the preconstruction services and the GMP be submitted to the Mayor and City Commission for approval.