Agenda Item Name:
Title
Request approval of initial Guaranteed Maximum Price (GMP), for the Fire Station Located at 10404 SW 24th Ave, Gainesville FL, to Contract #13356 with D E Scorpio Corporation Construction Management (CM) At Risk Contract for County Fire and Emergency Medical Stations.
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Presenter:
Ramon Gavarrete 352.374.5245
Description:
Request approval of final budget for the Guaranteed Maximum Price (GMP), for the Fire Station Located at 10404 SW 24th Ave, Gainesville FL, to Contract #13356 with D E Scorpio Corporation Construction Management (CM) At Risk Contract for County Fire and Emergency Medical Stations. The cost for the initial Fire Station is estimated at $6,793,125.00. Additionally, the Construction Manager’s Fee is amended to $315,180.00 from the original contract amount of $240,000.00.
Recommended Action:
Recommended Action
Approve Amendment to Agreement # 13356 with DE Scorpio setting the Guaranteed Maximum Price (GMP), for the Fire Station Located at 10404 SW 24th Ave, Gainesville FL. in the amount of $ 6,003,436.00. authorize the chair to sign the GMP and setting a project budget as outlined on the table with a total estimated cost of $6,793,125.00. This includes approving an increase to the Construction Managers Fee from the previously established amount of $240,000 to $315,180.
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Prior Board Motions:
August 25, 2020, Board approved the ranking of CCNA RFP 20-950 Professional Services for Fire Stations and authorized staff to negotiate an agreement with the highest ranked Professional, The Lunz Group.
May 11, 2021, Board approved the agreement with The Lunz Group for the Design of Alachua County Fire Stations.
February 8, 2022, Board Approved the ranking and authorize staff to negotiate a contract for RFP 22-303 Construction Manager at Risk for County Fire and Emergency Medical Stations with the top ranked firm. Should the staff be unable to negotiate a satisfactory contract with the top ranked firm, negotiations with that firm will be terminated. If needed, negotiations with the second ranked firm shall be undertaken in the same manner in order of ranking until a contract is reached.
May 10, 2022, the Board approved the Contract #13356 with D E Scorpio Corporation Construction Management (CM) At Risk Contract for County Fire and Emergency Medical Stations
October 11, 2022, the Board approved Resolution 2022-94 authorizing the issuance of $34,000,0000.00 for Capital Improvements. This authorized $19,000,000.00 for the new Court Services Building and $15,000,000.00 for new Fire Stations.
Fiscal Consideration:
Fiscal Consideration
Funding: 310.54.5480.522.62.00 - $40,000; 335.54.5480.522.62.00 - $7,000,000
Project #9215401: Station80.
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Strategic Guide:
Strategic Guide
Infrastructure
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Background:
On May 11, 2021, Board approved the agreement with The Lunz Group for the Design of Alachua County Fire Stations. The designs include a prototype station at 10404 SW 24th Avenue, Gainesville, and three potential subsequent stations at/or near 12825 NW US Highway 441, Alachua, FL, at/or near I-75 at NW US Highway 441, Alachua, FL and at/or near Hawthorne Rd (SR 20) at CR 234, Rochelle Community, Unincorporated Alachua County. The agreement with the Lunz Group establishes a framework on the cost for the reuse/update of the prototype design for subsequent stations.
On May 10, 2022, The Board approved the with the Construction Manager, D.E. Scorpio, to perform all work (“Work”), in connection with the development, design, procurement, management and construction of County Fire and Emergency Medical Stations (“Project”), said construction being set forth in the plans and specifications being prepared by The Lunz Group Inc, the Architect and/or Engineer of Record (“Design Professional”), and all other Contract Documents. The Construction Manager was tasked with Construction of County Fire and Emergency Medical Services Stations within three miles of the locations described below. The project will also include necessary design, construction work (such as roadway turn lanes), and all site work required by State or local review agencies.
• 10404 SW 24th Avenue, Gainesville, FL (Location #1)
• 12825 NW US Highway 441, Alachua, FL (Location #2)
• I-75 at NW US Highway 441, Alachua, FL (Location #3)
• Hawthorne Rd (SR 20) at CR 234, Rochelle Community, Unincorporated Alachua County (Location #4)
Staff has negotiated the GMP for the initial Fire Station, located at 10404 SW 24th Ave, Gainesville FL, at a cost of $6,003,436.00.
The proposed GMP also includes an increase in the Construction Manager’s Fee from the previously established amount of $240,000 to the new proposed amount of $315,180. In February 2022, the County negotiated a fixed fee with D E Scorpio Corporation based on a project value of $4 million. This resulted in a fee of $240,000 (6%). Over the course of the design and preconstruction phase, the project value has increased to $6 million. As a result, the Construction Manager at Risk Contractor’s (CMAR) risk to deliver this project with a GMP has increased by approximately 50%. The proposed fee is $315,180.00 (5.2%).
Construction Management fees are based on the inherit risks in guaranteeing a price and schedule. As the value of work increases, the CMAR’s guarantee risk to do business also increases. Risk for a Construction Manager includes guaranteed contract values, higher trade contractor values and risk of default, higher risk from a safety and liability perspective, and reduction in bonding capacity to pursue additional work. All of these factors increase the cost and risk to the CMAR’s business and the Construction Management fee is negotiated to be fair and equitable to the risk to perform the project.
For example, if the electrician’s contract value increases 50% from $250,000 to $325,000, the risk to the CM is now $325,000 if the electrician defaults. As the cost to deliver all the trade scopes of a project increases the CM’s risk to guarantee the delivery of the entire project increases.