City of LongmontLarry Wyeno, P.E.

Considering Alternative Delivery Factors considered

Legal Authority; State Law, Municipal Codes/Policies, Other

Complexity of ProjectObjectives/Goals; Budget, Schedule, Risk Internal Support, Knowledge and Experience Internal DB Team composition

DB Variations DB, DBO, DBOF Fixed Price DB Progressive DB Best Value DB

DB Projects WWTP Secondary Treatment

and Dewatering $33M WTP $42M WW Treatment Facility

Improvements $23M Pipeline $17M Anaerobic Digester &

Cogeneration $5M WTP & WWTP MCC

Improvements $1M

4

Lessons Learned Paradigm Shift in

Thinking DBB to DB Internal Knowledge,

experience and support Internal DB team

composition Develop processes &

documents early Flexibility of DB

Eric Hecox

6

Uses $800 million in existing infrastructure•Cost Recovery for Aurora’s Investments•Purchase of existing “Western Pipeline”

Construction of ~$100M of new infrastructure; in several phases

WISE Water Supply Benefits

8

Aurora Water– Offset PWP costs (annual revenue of

$10M)– Continued use of PWP for drought

supply

SMWSA– Renewable supply for SMWSA– Allows use of Denver Basin aquifer for

drought supply

Denver Water– Drought and emergency supplies for

DenverOpens the door to regional cooperationTotal Affected Population = 2 million

Map of WISE System Components

D/B Contract Components

9

Drivers for Fixed Price Design/Build Approach

1) Schedule – “Take-or-Pay” obligations in 2017

2) Early Price Certainty – 13 individual partners sharing in cost (10 South Metro, Denver Water, ECCV)

10

D/B Team Selection Process

1) RFQ2) Short List3) RFP4) Selection5) Contract Negotiations6) Notice to Proceed

11

Not as straight forward as planned

Approach to Selecting a Design-Builder for a Progressive

Design-Build Delivery Project

Jim Mallorey, P.E. - Metro Wastewater Reclamation District

Progressive Design-Build Selected for the Delivery of Five District Projects

Single contract/point of responsibilityNo forced relationship between

designer and contractorSchedule reductionRisk allocationOwner control of quality and designTransparency of costs + early cost

certainty

Design/Builder Procurement2-Step, Qualifications-Based Process

RFQ + RFP Shortlisted to 3 Teams Eligible to Propose Qualifications-Based Selection

(preconstruction-phase cost requested) Two (2) Confidential Meetings during

Proposal Period Basis of Design Provided

Basis for Proposer’s Technical Approach

Basis of Design Report (BDR) Establishes Design Definition

BDR Comprised of Technical Memorandums + General Drawings Constituting 10 to 15% design

Established “Boundary Conditions” and Guiding Principles District preferences Fixed vs. Open parameters

Hand-off Point to Design/Builder Basis for Evaluating Technical Proposals

Design/Builder design concepts and scope

Two-Phase Contractual Approach Outside legal consultant assisted District in preferred

contractual arrangement Engineers Joint Contract Documents Committee (EJCDC)

Two-Phase Contract1. Preliminary Services Agreement

Design deliverables (30/50/70/90%) Cost/risk model and cost proposal development Best Value Supplier/Subcontractor selection Permitting

2. Design/Build Agreement GMP-based; ability to convert to Stipulated Price Risk responsibility/assignment negotiated

District “Lessons Learned” and Best PracticesSpecify Designer- or Contractor-Led Design/Build Team

(if important)

Qualifications-Based Selection Invest in the project, not the procurement

Consider Asking for Design/Builder Fee or Indirect Costs Based on Percentage or Range (Must Be Prescriptive) General Conditions Design Services Engineering Services During Construction Fee

District “Lessons Learned” and Best Practices

Consider Benefits of Confidential Meetings Emphasize Dialogue/Conversation w/ Owner Use Meetings to Evaluate Team Chemistry Discuss Commercial Terms and Conditions Opportunity to Discuss Indirect Costs Discuss Self-Performance, Equipment Preferences

Bridging Documents Affirm the Need to Adhere to Basis of Design

District “Lessons Learned” andBest Practices

Two-Phase Contracting Approach Provided Flexibility Allowed Appropriate Risk Allocation First Phase Provides Added Leverage to Owners in

Negotiating Final Construction Cost; Provided “Off-Ramp” (if needed)

District “Lessons Learned” and Best Practices Include Relevant StakeholdersTake Time to Evaluate Organizational ImpactsEach Project Has Own “Personality”Owner Must Drive the DecisionLet Experts Facilitate the ProcessDon’t Underestimate Challenges with Implementing a

New Project Delivery Method Mental Business Processes