Template revised September 22, 2016. COMMISSION AGENDA MEMORANDUM Item No. CTION ITEM DATE: June 6 , TO: Dave Soike , Interim Chief Executive Officer FROM: Wayne Grotheer , Director, Aviation Project Management Group SUBJECT: Architect Services IDIQ Contract Amount of this request: Maximum value of contracts $13,000,000 ACTION REQUESTED EXECUTIVE SUMMARY ��COMMISSION AGENDA Action Item No. Page of Template revised September 22, 2016; format updates October 19, 2016. ranked qualified mall usiness nterprise and the other to the highest ranked qualified ertified mall usiness. The other larger contracts will also include small busi ness requirements. For the small business contracts, the Port will also delay the requirement to provide insurance and associated endorsement until the Port issues the first service directive. JUSTIFICATION IDIQ contracts provide the Port with the flex ibility to meet business requirements as they arise by issuing individual service directives to accomplish tasks within a general, pre defined scope of work on an as needed basis for a fixed period of time and a maximum contract amount. Competitively bid I DIQ contracts are a widely used public sector contracting tool, consistent with the Port’s General Delegation of Authority , and governed by CPO 1 policy. Representative needs for contract architect services include Terminal & Tenant projects , Landside , and Infrastructure projects through 2019 We expect that new projects and current projects not yet at the design stage will utilize the contract architects and engineers. DETAILS This r equest to execute up to five contracts the first thre e will be valued at $4 million each, and will be awarded to the highest ranked qualified firms; the fourth and fifth contracts, valued at $500 ,000 each, will be awarded to the highest ranked qualified mall usiness nterprise and to the highest ranked qualified rtified mall usiness. In the event the Port determines that there are not enough applicant firms with sufficient qualifications to perform this work, the Port may awar fewer contracts and increase capacity of the awarded contracts to the selected firms for a total capacity not to exceed $ million In addition to the set aside contracts for small business, this procurement will evaluate the prime proposers for the other contracts on how small businesses would be able to serve in meaningful roles on the ir project team. Each contract will hav e up to a three year ordering period. Service directives may be issued at any time during the contract ordering period. Work may be performed after expiration of the ordering period. The total value of all service directives issued on a contract will not exceed the contract value. Budgets to utilize these contracts will come separately from individual project authorizations. ��COMMISSION AGENDA Action Item No. Page of Template revised September 22, 2016; format updates October 19, 2016. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Do not procure Architect Services IDIQ contracts. Each project would individually procure its own architect services as needed. Cost Im plications: Each project would expend additional administrative costs to procure individual architect services. Pros (1) Defers the administrative cost of procurement to a later date when individual projects each do their own procurement. Cons (1) Increased cost for individual project procurements rather than a more efficient single procurement of IDIQ contracts. (2) Each individ ual project would have to procure architect services, which w cost mo re and add 4 months to each project schedule to complete the procurement process. This w delay completion of design and construction. This is not the recommended alternative. Alternative 2 Hire new full time rchitects and engineers as needed to meet project design workload forecasts Cost Implications: A potential savings of approximately $6 million could be realized over a 3 year period , compared with hiring consultants. potential savings could be offset by other factors that are likely to occur. Pros (1) Lower cost than consultant architects and engineers. (2) Institutional knowledge is built by Port Staff Cons (1) Consultant architects and engineers with specialized skills might still need to be hired when Port staff skills do not meet the design needs of a particular project Projects that cannot be efficiently scheduled with staff designers would have to be prioritized and wait for staff to become available , or be independently out sourced. Limited knowledge of future projects at time of annual budgeting means mid year budget adjustments may be required This is not the recommended alternative ��COMMISSION AGENDA Action Item No. Page of Template revised September 22, 2016; format updates October 19, 2016. Alternative 3 Prepare a single procurement to contract with up to five architect services firms Cost Implications: $13,000,000 maximum value for a 3 year ordering period . This request is for $0 since the costs would be paid by individual projects that issue Service Directives under the contract. Pros (1) Ability to balance consultant workload capacity with Port requirements, providing timely completion of projects (2) Procurement of IDIQ contracts that can be used by multiple projects avoids additional administrative costs that would otherwise be incurred if each project had to procure individual services contracts. (3) Highest level of flexibility architect team Cons (1) Contract ors build institutional knowledge, rather than Port Staff. (2) Cost is higher for consultants than staff with comparable experience One Port FTE architect/e ngineer over a year period cost approximately $450,000. One full time consultant architect/engineer over a 3 year period cost FINANCIAL IMPLICATIONS arges to these contracts will be from projects that will be authorized separately through established procedures. Consequently, there is no funding request associated with this authorization. The total cost for architect services will not exceed $13,000,000. No work is guaranteed to the consultants and the Port is not obliga ted to pay the consultant until a service directive is executed. After receiving authorization for each project in accordance with the Master Delegation of Authority, the actual work will be defined and the Port will issue individual project specific servi ce directives. ATTACHMENTS TO THIS REQUEST None ��COMMISSION AGENDA Action Item No. Page of Template revised September 22, 2016; format updates October 19, 2016. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS May 23, 2017 The Commission requested that the proposed procurement be modified to better accommodate the needs of small business proposers. June 9, 2015 The Commission authorized the execution of three professional services IDIQ contracts for architect services. Maximum combined value of contracts was $3,500,000. May 28, 2013 The Commission authorized the execution of two professional services IDIQ contracts for architect ser vices. Maximum combined value of contracts was ,000,000 January 10, 2012 The Commission authorized the execution of a single professional services indefinite delivery, indefinite quantity contract for architectural services. Maximum value of contract was $4,000,000.