WORKSPACE STRATEGY & RECOMMENDED VENDOR SELECTION

PRESENTED BY :Frank Almaraz

Chief Administrative & Business Development Officer (CABDO)

August 26, 2019

App rova l Reques t ed

• REVIEW STRATEGY FOR REFRESHING MODULAR FURNITURE IN SERVICE FOR 30+ YEARS

• REVIEW PROCESS FOR BIDS & EVALUATION

• DISCUSS PROPOSAL FOR 5-YEAR CONTRACT FOR MODULAR FURNITURE AT MCCULLOUGH BUILDING, AS WELL AS FUTURE FACILITIES

OBJECTIVES & TAKEAWAYS

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AGENDA

• MCCULLOUGH BUILDING VENDOR UPDATE

• WORKSPACE DESIGN & PLANNING FOR EFFICIENCY

• REVIEW OF PROPOSAL HIGHLIGHTS & EVALUATION

• REQUEST APPROVAL FOR 5-YEAR, MULTI-FACILITY CONTRACT

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MCCULLOUGH BUDGETLOCAL, SMALL & DIVERSE OPPORTUNITY

Maximum Contract Value + CEO Contingency $215M*

Less CEO Contingency (5M)

Maximum Contract Value 210M

Land & Existing Building (25M)

Subtotal 185M

Fees – Insurance, City & Others (15M)

Total $170M

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Of the project’s $215M budget, there were $170M of contracting opportunities available to our community.

*Goal = on time & on budget

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CONSTRUCTION PARTNERS

HIGHLIGHTS VIDEO

Environment Behavior Culture Results

WORKSPACE IMPACTS CULTUREEFFICIENCY & COLLABORATION

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DESIGN PLANNING

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WORKSTATIONS HAVE MODERNIZED

Current inventory:• Is @ end-of-life• Is too large for the modern workspace• Does not accommodate modern tech tools

CPS Energy cubicles, after 1986 renovation

Total Seats for Floor (76)

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Copy/Mail RM

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Building walls in lieu of modular workstations would have increased construction costs by ~$9M and furnishings would still be required.

MCCULLOUGH BUILDINGUNFURNISHED FLOORPLAN

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Total Seats for Floor (76)

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MCCULLOUGH BUILDINGFLOORPLAN EXAMPLE

The McCullough Building’s portion of the modular furniture cost represents less than 4% of the overall project budget + the CEO Contingency ($215M).

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FLEXIBILITY = COST EFFICIENCYINTERCHANGEABLE KIT-OF-PARTS

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One set of parts for all facilities allows for interchangeability and reduces maintenance & inventory costs.

RE-USE / RECYCLE

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We will repurpose furniture that has a remaining useful life.

Office furniture in good condition will be moved to McCullough Building.

Some conference room furniture in good condition will be repurposed where most practical.

Braunig Power Station

Calaveras Power Station

Eastside Service Center

Green Mountain Center

Leon Creek Power Station

Malone Service Center

Nacogdoches Road

Northwest Service Center

Southwest Service Center 12

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2

1

33

4

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NEW & REMODELED

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1,300 employees

35

240

TBD

TBD

130

320

150

170

10

150

220

215

230 Map does not include all work sites

FUTURE WORKSPACES

McCullough Building

Gembler Fleet Center

Gas Service Center

Helotes Service Center

West Service Center

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IN SUMMARY: PROPOSAL SCOPE

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Agreement is with Local Dealer:

• Each dealer has product exclusivity within the region

• Dealer provides support and service to customer

• Volume purchase results in reduced pricing

Single Manufacturer:

• Estimated cost savings of $3M - $5M over 5 years

• Consistent warranty coverage for all parts / items

• Kit-of-parts allows easy configuration / reconfiguration at all locations

• Reduces inventory bought and stored

MODULAR FURNITURE

MULTI-STAGE PROCESS

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5 Qualified to participate,

based on RFP specifications

8 Respondents to the RFI & received the

RFP

2 Finalists selected,

based on RFP criteria

1 Recommended

Dealer

All 5 are small* &

local!

*U.S. Small Business Administration definition (code 121.201)

RFP EVALUATION TEAM

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Rina Gomez Finance

Kim Walker EIT

Olivia SanchezPeople & Culture

Robert StephensFinance

Bella James Facilities

Kelly Collins Facilities

Jamie WilliamsFacilities

Tony MenchacaEIT

ChiChi Anyanwu People & Culture

Joe CastanedaSafety

Diverse evaluation team from across the organization.

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EMPLOYEE EVALUATIONFOR DEALER SELECTION

Employee representatives visited all 5 respondents & conducted a thorough assessment.

DEALER EVALUATION PROCESS

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FIRST ROUND CRITERIA ASSESSED

KEY AREAS OF FOCUS HIGHLIGHTS

Meet Project Requirements Ability to provide the items specified in the scope of work

ExperienceHas implemented work of this size / scale, including logisticsDemonstrates clear ability to provide customer supportProvides support for and Quality Assurance of investment

Safety Ability to operate safely within our work environment

Cost Direct costs / capital purchase of scoped materials

Economic Development Impact Direct benefit for our community; small/local impact

DEALER EVALUATION PROCESSSECOND ROUND RESULTS

CATEGORYA B

Project Support

Warranty Provisions

Price

Small Business2

Woman-Owned Business

DEALER1

The recommended vendor distinguished themselves with:- Price that is 20% better

than next closest bid- Warranty coverage value

estimated at $1.9M greater than Dealer B

- Inventory management services valued at $0.5M greater than Dealer B

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1All dealers were local2U.S. Small Business Administration definition (code 121.201)

MAY-JUNE

EVALUATION TEAM RECOMMENDATION

AUGUST

REQUEST BOARD

APPROVAL

SEPT

IF APPROVED,

EXECUTE CONTRACT

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FURNITURE PROGRAM TIMELINE

MARCH

RFP ISSUED

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JULY

EXECUTIVE REVIEW

If approved, contract will be processed and initial order will be placed in October.

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OCT

MCCULLOUGH WORKSTATION

ORDER

FUTURE SPACE ORDER

FUTURE SPACE ORDER

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REQUEST FOR APPROVAL

Request the Board of Trustees’ approval to execute a contract for modular furniture up to $18 million & for a term of 5 years with Dealer A.

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Thank You