City of Ottawa, NCHCA & CEO 2017 Education Series Bridging the Gap Between Owners, Consultants, and Contractors The Road to Construction “A Consultant’s Perspective” February 24, 2017 By: Edson Donnelly

The Road to Construction Andy has described how a project is created, moved to ISD and through to construction. This presentation will focus on how a consultant is selected, engages and carries out the assignment. The circle gets a little bigger, the team grows…

RFSO | RFQ | RFP How does the City do this? There are a number of ways: RFSO – Request for Standing Offer RFQ/RFP – Request for Qualifications followed by a Request for Proposals RFP – Direct to Request for Proposals The City uses the MERX System to publish these opportunities

RFSO On a 3-year rotation (typically) the City seeks to qualify firms to complete assignments under the Standing Offer Firms must first pass the Technical ‘gate’ before their financial offer is considered. A firm must achieve a pass grade of 70% to advance. Financial offer is then considered. The value of services provided under a single call-up cannot exceed $250,000 (this typically includes design and services during construction and applicable taxes). Equates to projects with an approximate maximum construction value of $1.5m to $2.0 m. Various mandated discounts apply to assignments depending on their value (5% for Assignments over $100k, and 10% for Assignments over $150k.)

Categories Under the RFSO include: Category Number Category Name 1 Planning, Feasibility, Pre-Engineering, Environmental Studies and Assessments 2 Design and Construction Services – Roads, Sewers, Watermains etc. 3 Design and Construction Services – Water Distribution/Treatment and Waste Water Collection 4 Structural Services – Bridges, Culverts, retaining Walls, Transit Stations etc. 5 Geotechnical Investigations and/or Contaminated Site Evaluation 6 Environmental Services 7 Asset Management Services 8 Claim and Risk Assessment/Schedule, Monitoring and Control

RFQ RFP RFQ/RFP Process Open call for a submission of Qualifications It is a 2 Step Process - in each case, the City provides a detailed Terms of Reference. RFQ Open call for a submission of Qualifications City reviews and creates a short list of 3-4 firms to move onto the RFP Stage No financial information is offered at this point RFP 80% Technical – Service Proposal (typically) 20% Financial – A minimum score of 70% of your service proposal must be reached in order for a firm’s financial to be considered

RFQ/RFP Process City identifies the preferred proponent and award is recommended subject to the successful proponent resolving any issues with their submission and offering a 4% minimum reduction in their level of effort/cost. The 4% reduction strategy was adopted by Council in 2008. A purchase order is issued.

Some Comments: In certain circumstances the City will move straight to the RFP phase, which saves time – approximately 8 – 10 weeks. However, the effort required by the consulting industry is increased. It’s now anywhere from 8 – 12 firms submitting for the full RFP (versus only 3-4 short-listed for the RFP when the RFQ Step is included).

Typical Effort Expended During RFQ/RFP Award Period 25 Weeks Duration Peak = 81 Hours per Week Typical Effort Expended During RFQ/RFP Award Period 25 Weeks Duration Peak Effort 81 hours per week

Our Design Efforts Begin Lots of Questions/Unknowns A certain degree of anxiety

As general comment, as a result of internal reviews/audits, the City have developed a series of measures to improve Project Delivery. These include: Emphasis on schedule Risk Analysis Structured Capital Cost Estimating (Class A, B, C & D) Deliverables based payments during Design Stage (Milestone Billing) VPM Client (usually Assessment Management Branch [AMB]) sign off on Preliminary Design Report ISD Program Manager/Manager Preliminary Design review; Permission to proceed to Detail Design

Design Efforts are typically broken down into: Preliminary Design and related tasks Detail Design Tender Preparation Input during Tender and Award Period Preparing for and attending the Pre-construction Meeting

Preliminary Design Project Initiation/Notice Data Collection and Review Base Plan Preparation Field Investigations (utility locates, geotechnical and environmental, surveys, private property investigations etc.) Engage private utility companies Preliminary Design Development Input from a Technical Advisory Committee (TAC) (Stakeholder Awareness and feedback) Public Open House/Consult with Ward Councillor

Preliminary Design Preliminary Design Reporting, Key Features: Schedule Update (including looking at anticipated construction duration requirements) Class Capital Cost Estimate (Class B) Updated Risk Matrix Preliminary Design Circulation: Circulated widely throughout the City (including private utility companies and external agencies)

Capital Cost Estimate Classification System Type Description Contingency Level of Accuracy B Design Level An estimate based on design completed to a preliminary to detailed level, after site investigations and studies have been completed 10% to 20% +/-15%

Capital Cost Estimate Components Cost Component Description Estimate Class B Construction Construction contracts, traffic management and related services during construction Design Level Estimate Based on design completed to preliminary to detailed level Engineering and Architectural Services Planning, design, construction administration, surveying, studies Actual cost incurred plus 10% to 20% of construction estimate for design and construction management Utilities Relocation of existing utilities Utility company estimate Property Land purchase, leases, easements, legal and appraisal services REPDO estimate City Internal Costs Project management, traffic management, water and sewer services Actual cost incurred plus 5% to 7% of construction estimate for design and construction management Miscellaneous Permits, public art, communications Actual cost incurred plus 3% to 5% of construction estimate Contingency 10% to 20%

Typical Effort Expended During Preliminary Design Phase Peak = 165 Hours per Week Typical Effort Expended During Preliminary Design Phase 40 weeks duration Peak Effort 165 hours per week

Detail Design Begins after Client (AMB) and Managers sign-off Review Preliminary Design Comments Develop Design to Detail Level Secure Approvals Incorporate sub-consultant input into design and tender Development/Refine Traffic Management Strategy and Operational Constraints (D-005 & D-008) Prepare Materials Management Plan Prepare Class ‘A’ Estimate Prepare Tender Work with City on preparing the tender ‘Package’ for publication by the OCA Preparing for construction (hand-off to construction team and pre-construction meeting)

Peak Effort 145 hours per week Peak = 145 Hours per Week Typical Effort Expended During Detail Design, Tender Preparation and Tender/Award Period 25 Weeks Duration Peak Effort 145 hours per week

Timelines in Aggregate: 91 Weeks Duration

The Project Life Cycle (Design Development) (Project Initiation/Fact Finding) (RFQ/RFP) (Tender & Commencement of Construction The Project Life Cycle

We now move to Construction Most unknowns resolved The circle gets bigger again New team members