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Conventional Facilities Method of Accomplishment

Marty FallierDirector for Conventional Facilities

NSLS-II PAC ReviewNovember 20, 2007

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Outline

• Conventional Facilities (CF) Issues

• CF Organization

• Design Phase Construction Management (CM)

• Construction Phase CM

• Construction Procurement Strategy

• Construction Market Conditions

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CF Issues

• NSLS II CF Scope is larger than any work at BNL since 1980.• Is the CF Organization the right size and capability to carry out

the scope of work?• What construction management approach is best?• What contracting approach is best?

• CF construction costs are still volatile and subject to dynamic market influences• Are we adequately addressing this risk?• Are there other strategies that should be employed?

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Conventional Facilities Organization

Conventional FacilitiesDirector

M. Fallier

NSLS II Design A/EHDR

A. Soueid[C]

Asst. Director CF Design Management

O. Dyling

Commissioning ContractorTBD [C]

PE Trade Shop Support – Various

[M]

Subconsultants Vita-tech

Colin -Gordon VJ Assoc.[C]

Construction Phase Agent CM

Project Mgr – TBD [C]

CF Electrical Engineer

CF Civil/Structural

Engineer

Facility Dynamic Modeling & Analysis

N. Simos[M]

CF Mechanical Engineer

[M] – Matrixed

[C] - Contracted

Asst. Director CF Construction Management

S. Sawch

Construction Analysts [C]

Project Schedulers[C]

Field Inspectors[C]

Cost Estimators[C]

Construction Safety Specialists [C]

Project ArchitectT. McEvaddy [M]

Mech. EngineerG. Leskody [M]

Civil/Struct. Engr.T. Joos [M]

Elect. EngineerD. Danseglio [M]

Sr Mech. Engr.C. Channing [M]

ECS Design Supervisor J. Mills [M]

Design Phase CM LiRo/Gilbane

N. Heyman [C]

Chilled Water Fac.Design A/E Giffels

B. Harrison [C]

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Conventional Facilities Staffing

Conventional Facilities FTEs

-

10

20

30

40

50

60

FY08 FY09 FY10 FY11 FY12 FY13 FY14

Fiscal Year

FT

Es

Conventional Facilities 1.5 A/E C/M

This represents up to 12 FTE’s in the field overseeing construction during the active construction period

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Design Phase CM Services

• Contract awarded to joint venture of local and national CM (LiRo/Gilbane) to help reduce risk. Services include:• Independent estimate

• Currently about 8% higher than A/E estimate• Independent schedule development

• Baseline schedule can be shortened if funding profile is advanced• Value engineering support

• Facilitated T-I VE review & completed T-I VE report• Constructability & design review - underway• Market analysis – will discuss in later slide• Contractor outreach & pre-procurement support - begins next

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Construction Phase Management

NSLS II CF Directors responsible for performance• Construction Phase Management is an integrated team approach

• CM provides field inspection and coordination services• Oversight of contractor performance of contract (Owners Agent)

• QA, Construction safety, testing, schedule, RFI’s, CO’s, Invoice review

• A/E will provide home office support• Engineer of record, shop dwg review, ECN’s, periodic inspection, RFI’s

• PE Engineering and Construction Services and Trade crafts• Utility interconnect support, shutdowns, start-ups, permits

• Commissioning contractor - checkout and startup of systems• Document test results & performance, training & documentation for operating staff, info for

LEED certification All working together under the leadership and direction of CF

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CM Construction Phase Responsibilities

• Assist BNL in bid and contract award process• Provide CM staff during construction

• Field inspection, coordination & oversight• Home office advisory support for CM processes

• Implement oversight of safety program• Monitor schedule compliance• Implement quality control program• Cost controls and reporting• Process monthly payment requisitions• Assist in project closeout and commissioning

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Construction Packages

• Construction Contracts – All fixed price, best value award• Construction Packages Direct 07 $ At-year $

– Site Preparation 0.9 M 1.0 M– Ring Building* (main contract) 161.9 M 191.4 M– Chilled Water Plant Expansion 7.8 M 9.1 M– Chilled Water Piping to site 0.9 M 1.1 M– Electrical Substation Upgrade 2.0 M 2.4 M

Total $173.5 M $ 205.0 M

*Ring Bldg Contract to single GC with very clear, easily separable interface ties to the other packages.

Firms to be pre-qualified by July 2008

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Ring Bldg Contracting Concerns

• Single large, lump sum GC package makes responsibility for performance & coordination clear• It does limit number of local LI contractors able to perform contract of this

size• Its size should attract larger NYC and national firms

• This will be verified during contractor outreach process• Amount of work in NYC is large and getting larger so firms may not be interested

in coming to LI for this

• Most competitive pricing likely to come from local firm with capability to do work of this size• May need to break up package to assure this• Introduces coordination/responsibility risks

• DOE safety requirements may discourage competitive bids

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CF Contractor Safety Requirements

• All contractors selected based on safety performance as a major evaluation factor• Must submit HASP for BNL approval incorporating ISM

principles• 10CFR851 health/monitoring program required• Drug-free workplace program required• Full time on-site safety representative(s)• Flowdown of safety requirements to subcontractors• Mandatory daily work planning & tool box safety meetings• Safety incentive program

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Market & Construction Cost Volatility

• Material commodity price spikes continue to be a concern• 4 year construction duration exposes contractors to large risk

• NYC construction is booming - $20B in lower Manhattan• Puts pressure on labor supply and costs

• LI construction market is moderate – can support NSLS II• Strategy – • Structure packages so LI contractors can bid• Consider commodity price escalation clauses to reduce contractor

risk and encourage competitive pool of bidders• Update market analysis frequently to adjust strategy as needed• Use contractor outreach process to gauge efficacy of strategy