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Brentwood City Commission Agenda
Meeting Date: 12/10/2018  
Resolution 2018-96 Agreement with The Parent Company for Construction Management Services for Police Headquarters Building
Submitted by: Kirk Bednar, Administration
Department: Administration  

Information
Subject
Resolution 2018-96 Agreement with The Parent Company for Construction Management Services for Police Headquarters Building
Background
As previously discussed, the method for construction of the planned Police Headquarters facility provides for selection of a construction manager.  Under this method, the construction manager is selected during the design phase and serves as the third member of the project team, along with the owner and architect, to successfully complete a complex construction project.  The construction manager’s role is divided into two phases – Pre-Construction services and Construction services.

The Pre-Construction services performed by the Construction Manager include the following:
  1. Work alongside the architect to assess project constructability and identify construction efficiencies and value engineering options to maintain the project budget;
  2. Prepare preliminary project budget estimates based on schematic design and update the budget throughout the final design and value engineering process;
  3. Develop construction phasing plans;
  4. Prepare subcontractor scopes of work and bid packages; and,
  5. Competitively bid all subcontractor work packages.
Once the various subcontractor packages have been bid, the construction manager will present a guaranteed maximum price (GMP) for construction of the project.  Once the GMP is accepted by the City, the construction manager then initiates the Construction phase of the project and oversees all aspects of construction to final completion.

To select a construction manager for this project, staff issued a Request for Proposals (RFP) designed to select a contractor that presented the best combination of experience, qualifications, and fees.  Five Middle Tennessee firms submitted proposals:
 
  1. Bell and Associates
  2. DF Chase
  3. Doster
  4. Hardaway Construction
  5. The Parent Company
The various fees that can be compared among the firms include the following:
  1. Lump sum Pre-Construction service fees;
  2. Proposed General Conditions fees based on a fifteen-month construction schedule;
  3. Contractor Cost of Work fees (contractor's % markup added to all subcontractor costs).
The table below summarizes the fees and percentages for each of the firms:

Fee Category Bell Chase Doster Hardaway Parent
Pre-Construction $20,000 $10,000 $35,000 $30,000 $20,000
Gen. Conditions (15 mo.) $724,834 $794,890 $817,397 $595,372 $597,067
Contractor's Fee -
Cost of Work
4.0% 3.25% 3.0% 2.5% 2.9%
Contractor's Fee - Change Orders 4.0% 3.25% 10.0% 2.5% 2.9%
Bonding Rate 0.53% 0.61% 0.68% 0.48% 0.64%
Total based on $25 mil. project $1,880,584 $1,759,892 $1,736,147 $1,340,375 $1,482,067

 
The staff review and selection team included Chief Jeff Hughes, Assistant Chief Tommy Walsh, Assistant City Manager Jay Evans, and Engineering Director Mike Harris.  Architect James Kennon and his staff also provided input into the selection process. After interviewing three of the firms (Bell, Chase, and Parent), the staff is recommending The Parent Company as the construction manager for this very important project.  
 
The Parent Company is a Brentwood-based company that successfully completed an expansion project at the Service Center in 2005.  More recently, The Parent Company was the construction manager for the Williamson County Emergency Operations Center completed in 2015.  This project is approximately the same size as the planned Police HQ building, but had added construction complexity related to enhanced seismic and structural strength to withstand an EF-5 tornado. Note that The Parent Company proposes a project team that includes the same project manager and construction superintendent as the Williamson County project. The Parent Company also recently completed a project at Montgomery Bell Academy that included an indoor rifle range.  From a fee perspective, The Parent Company proposal included the lowest combined fee proposal of the final three firms (Bell, Chase, and Parent) considered.
 
If approved, The Parent Company staff will immediately begin working with the design team with a goal of beginning construction by early summer 2019 with a late 2020 targeted completion date.
Staff Recommendation
Staff recommends approval of Resolution 2018-96.
Previous Commission Action
The contract for Phase II architectural services with the Architect Workshop was approved by the Board of Commissioners on November 12, 2018 (Resolution 2018-91).

The contract for Phase I architectural services with the Architect Workshop (fka Kennon Calhoun Workshop) was approved by the Board of Commissioners on October 26, 2017 (Resolution 2017-77).

Fiscal Impact
Amount : $20,000
Source of Funds: Capital Projects Fund
Account Number: 311-45200-5028
Fiscal Impact:
Approval of this contract obligates the City to the $20,000 lump sum fee for Pre-Construction services.  The other associated fees (General Conditions, Cost of Work, and Bonding) will be incorporated in the Guaranteed Maximum Price, which will be subject to future approval by the Board of Commissioners prior to commencement of the construction phase of the project.
Attachments
Resolution 2018-96
Contract
Parent Company Proposal
Signed Resolution

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