8f. Memo - Architect Services IDIQ Contracts
COMMISSION AGENDA MEMORANDUM Item No. 8f ACTION ITEM Date of Meeting December 14, 2021 DATE: November 23, 2021 TO: Stephen P. Metruck, Executive Director FROM: Wayne Grotheer, Director, Aviation Project Management Group SUBJECT: Architect Services IDIQ Contracts Amount of this request: $0 Total estimated contract capacity: $9,000,000 ACTION REQUESTED Request Commission authorization for the Executive Director to execute up to three professional services indefinite delivery, indefinite quantity (IDIQ) contracts for architectural services for a total capacity not to exceed $9 million. Each contract will include a fifteen percent goal for Women and Minority-owned Business Enterprises. There is no funding associated with this request EXECUTIVE SUMMARY The Aviation Project Management Group (AVPMG) utilizes indefinite delivery, indefinite quantity (IDIQ) contracts to meet highly variable workload projections for architect services. The existing architectural service IDIQ contracts established in 2017, with a total value of $9,000,000, have either been fully committed or contract time has expired. We anticipate that this request will provide the necessary architectural services to meet AVPMG needs for the next three to five years. JUSTIFICATION The demand for design services on airport projects is increasing. The Airport is adding substantial amounts of new capital projects each year. To support the increasing and dynamic business requirements of SEA, AVPMG requires flexibility in obtaining design services. The IDIQ contracts provide flexibility through project-specific service directives that allow project architectural services, which includes engineer sub consultants as part of the architect team, to be provided on an as-needed basis for a fixed period and a maximum contract amount. These contracts will also be available to other Port departments. Without these IDIQ contracts, individual project procurements would be required, which are less efficient than a single procurement, that can Template revised January 10, 2019. COMMISSION AGENDA Action Item No. _8f_ Page 2 of 4 Meeting Date: December 14, 2021 serve numerous projects. Individual procurements would increase costs and increase time to each project schedule, which would delay completion of design and construction. IDIQ contracts provide the Port with the flexibility 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 and a maximum contract amount. Competitively bid IDIQ contracts are a widely used public sector contracting tool, consistent with the Port's General Delegation of Authority, and governed by CPO-1 policy. We expect that many new and current projects not yet at the design stage will utilize the contract architects and engineers. Examples of projects designed by consultants under previous IDIQ contracts include the Airport Lost and Found, Airport Employee Services Center and Central Terminal Enhancements. Diversity in Contracting The Diversity in Contracting Department has established a fifteen percent (15%) Women and Minority-owned Business Enterprise (WMBE) aspirational goal and inclusion plan for each contract. DETAILS This request is to execute up to three contracts: the three contracts will be valued at $3 million each and will be awarded to the highest-ranked qualified firms. In the event the Port determines that there are not enough applicant firms with sufficient qualifications to perform this work, the Port may award fewer contracts and increase capacity of the awarded contracts to the selected firms for a total capacity not to exceed $9 million. Each contract will have a five-year ordering period, a three-year duration plus 2 one-year options to extend. 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. Schedule It is estimated that these contracts will be executed by Q2 2022 and will have a five-year ordering period, a three-year duration plus 2 one-year options to extend. The contract duration may extend beyond that period to allow work begun earlier to be completed. ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 Do not procure Architect Services IDIQ contracts. Each project would individually procure its own architect services as needed. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. _8f_ Page 3 of 4 Meeting Date: December 14, 2021 Cost Implications: 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 individual project would have to procure architect services, which will add time to each project schedule to complete the procurement process. This will delay completion of design and construction. This is not the recommended alternative. Alternative 2 Hire new full-time architect as needed to meet project design workload forecasts. Cost Implications: A potential savings for one full time FTE is approximately $1 million realized over a 5-year period, compared to hiring a consultant. This 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. (2) Projects that cannot be efficiently scheduled with staff designers would have to be prioritized and wait for staff to become available or be independently outsourced. (3) Limited knowledge of future projects at time of annual budgeting means mid-year budget adjustments may be required. (4) The Port takes on the risk for design errors and omissions. This is not the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA Action Item No. _8f_ Page 4 of 4 Meeting Date: December 14, 2021 Alternative 3 Prepare a single procurement to contract up to three architect services firms. Cost Implications: $9,000,000 maximum value for a 5-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 teams are added or removed as needed to meet demand (4) Provides opportunities to architect services firms (5) Provides opportunities to WMBE firms Cons: (1) IDIQ contracts are not tailored to the specific needs of the projects that may use them (2) IDIQ contracts cannot be enlarged or have their contract ordering periods extended which can make full utilization difficult to achieve (3) Cost is higher for consultants than staff with comparable experience (4) Multiple contracts would require greater administrative support This is the recommended alternative. FINANCIAL IMPLICATIONS Charges 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 $9,000,000. No work is guaranteed to the consultants and the Port is not obligated 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 service directives. ATTACHMENTS TO THIS REQUEST None PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised June 27, 2019 (Diversity in Contracting).
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