Date: April 28, 2006
Phillip Ciesielski
From: Burns & McDonnell / Garney LLC
Re: Kentucky Pump Station # 16
Initial Design, Value Engineering, and Cost Development.
Background:
Through submission and detailed evaluation of qualifications, the City Commission has selected Burns & McDonnell / Garney LLC as the design build contractor for improvements to the Kentucky Pump Station (Pump Station #16). Utilities Staff have participated in several design reviews, value engineering sessions, review of sub-contractor and equipment bids. Burns & McDonnell / Garney LLC met with staff on April 27, 2006 and conducted a detailed review of project costs including design and construction costs. The result of the Initial Design Phase, Value Engineering and Cost development process and a summary of the competitive process utilized to develop the project cost is summarized below.
Initial Design and Value Engineering:
The initial design of the project is now complete. During the initial design process, the design / build team including the Utilities Department staff participated in the definition of needs, review of concepts and development of design criteria and value engineering of the project. Major scope elements include the following:
Cost Development and Competitive Process:
The total cost developed for the project including engineering design is broken down as follows:
Rehabilitate PS 16: $1,541,430.00
Engineering: 249,000.00
Contingency: 30,000.00
Westar Energy Fee: 20,000.00
Railroad Permit Fee: 6,250.00
Total: $1,846,680.00
The construction cost for major equipment and subcontract packages were competitively bid among several equipment suppliers and prospective sub-contractors: Competitively bid equipment and materials account for 68% of construction cost. Fixed cost including insurance, bonds, Westar Energy development fee, associated railroad fees, insurance and general conditions cost account for an additional 13% of the construction cost. Therefore the competitively bid and fixed costs account for 81% of construction cost. The remaining 19% of construction cost are attributable to labor and equipment of self-performed work.
Of the equipment packages selected for inclusion in the project two low bidders were not recommended. The second place bidder for pumping equipment is recommended by the design build team because they were considered a best value choice. This recommendation is based on the second place supplier having a superior history with pumping equipment of this size range, a very large installed base of equipment in this size range and capacity to provide service both on a normal and emergency basis locally.
The variable frequency drives recommended did not provide the lowest equipment bid, however when the design build team considered the following factors: offer of a 5 year full warranty, single unit installation therefore not requiring a harmonic filter, and space limitations in the existing building the second place variable frequency drive was lower in total installed cost.
Design & Engineering Cost.
Design and engineering cost equates to 15.6%. National average for new construction ranges from 14% to 17% with rehabilitation of existing wastewater facilities in many cases being higher. The cost includes preliminary studies and evaluations, conceptual and final design and appropriate and prudent levels of engineering support during construction. A detailed breakdown of engineering costs has been provided to staff.
Involvement of Local Resources:
Burns & McDonnell / Garney LLC are committed to the use of local resources wherever practical. We solicited proposals from several local subcontractors and sub consultants. HVAC and engineering survey support is intended to be contracted a local companies. Where possible, equipment materials and consumables will be purchased in locally.
Options and Alternatives.
As part of the value engineering process the project team developed cost of $234,891 to rehabilitate deficient sections of the 30-inch corrugated metal influent line to the pump station. This work would be coordinated with bypass pumping operations required for the pump station work. Utilities staff elected to defer this option pending the outcome of the North West Sanitary Sewer Master Plan. This cost is not included in the proposed contract amount but could be added at the City’s option a later date.