DEPARTMENT: Transportation & Capital Improvements
DEPARTMENT HEAD: Mike Frisbie, P.E.
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Deductive Change Order and JOC Contract Award: Henry B Gonzalez Convention Center Expansion Project: Aluminum Plate Wall Guard
SUMMARY:
An ordinance authorizing a deductive change order to the existing Design-Build Contract with Hunt-Zachry, a Joint Venture, decreasing the contract amount by $199,877.40 for a total contract value not to exceed $306,800,122.60 for the Henry B. Gonzalez Convention Center Expansion Project and authorizing a Job Order Contract with Tejas Premier Building Contractor, Inc. in an amount not to exceed $199,877.40 to support the HBGCC Expansion Project in the installation of aluminum plate wall guard, a Texas Public Facility Corporation Contributions funded project located in Council District 1.
BACKGROUND INFORMATION:
Project Background
The Henry B. Gonzalez Convention Center (HBGCC) originally was constructed for HemisFair 1968. HBGCC was expanded and renovated in 1974, 1977, 1986 and again in 1999. In 2010, the City hired a consultant to perform a facilities development study of the Convention Center. Recommendations received from the consultant included the replacement of the 42-year-old west building by expanding the convention center to the east, in order to create contiguous exhibit halls and optimally distributed meeting spaces. Ultimately the plan to expand the Convention Center was brought before City Council on September 9, 2012 and awarded as a Design-Build contract to Hunt-Zachry, a Joint Venture, on October 10, 2012 through Ordinance 2012-09-20-0711.
This HBGCC expansion marks the largest single capital improvement project in the City of San Antonio’s history and increased the HBGCC footprint to 1.65 million square feet. The expansion includes more than 800,000 square feet of new construction and more than 78,000 square feet in the existing building. The expansion comprises 260,000 square feet of new exhibition space, along with a 54,000 square foot ballroom, making the Henry B. Gonzalez Convention Center the largest of its kind in Texas. The expansion makes the HBGCC more competitive and allows it to be considered for larger meetings groups.
The eastern expansion of HBGCC was completed in January 2016 and the west expansion reached substantial completion in February 2016. As the overall project approaches its final completion date, a number of amendments and support efforts are required to address unforeseen site conditions and ensure more efficient HBGCC operations. This effort was planned part of the project close-out as authorized by City Council through Ordinance 2016-10-13-0785 for use of existing project funds to address these final project issues. In order for Hunt-Zachry to complete these final items, the City will pay much more than to procure these same services rather than using an existing contract. City staff determined it would be more beneficial to the project to utilize an existing Job Order Contract and realize a $150,000.00 savings.
This action item authorizes City staff to task an existing Job Order Contract with Tejas Premier for the installation of aluminum plate wall guard and reduce this expense from the existing Design-Build Contract with Hunt-Zachry, A Joint Venture.
Procurement of Services
This effort was selected to utilize the Job Order Contracting (JOC), an alternative project delivery method, through which ten contractors were approved through Ordinance 2015-01-15-0013 by City Council on January 15, 2015. The use of the JOC delivery method has provided the City with on-call construction, renovation and maintenance services for City buildings and facilities. Assignment of a JOC contractor to specific job is based on the contractor’s current workload, overall capacity, familiarity with a specific facility, expertise in completing specific task(s) and/or managing a specific trade needed to carry out the job. Of the ten contractors, Tejas Premier Building Contractor, Inc. was selected to submit an estimate and project schedule for this effort.
The Job Order Contract was awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee set a 23% Minority/Women Business Enterprise (M/WBE) subcontracting goal and a 3% African American Business Enterprise (AABE) subcontracting goal. Tejas Premier Building Contractor, Inc., has committed to meeting the assigned Job Order Contract subcontractor goals on a quarterly basis. Tejas Premier Building Contractor, Inc. is a small, minority-owned business.
Discretionary Contracts Disclosure Form, as required by the City’s Ethics Ordinance for all Projects, where subjective criteria are used to select the contractor or consultant rather than by low bid, is attached.
ISSUE:
This ordinance authorizes a deductive change order to the existing Design-Build Contract with Hunt-Zachry , A Joint Venture , decreases the contract amount by $199,877.40 for a total contract value not to exceed $306,800,122.60 for the Henry B. Gonzalez Convention Center Expansion Project and authorizing a Job Order Contract with Tejas Premier Building Contractor, Inc. in an amount not to exceed $199,877.40 to support the HBGCC Expansion Project in the installation of aluminum plate wall guard, a Texas Public Facility Corporation Contributions funded project located in Council District 1.
A wall guard is composed of aluminum embossed sheets that will be installed on the sheet rock of the walls in the hallways located behind the meetings rooms and ballrooms and primarily used by service staff to move chairs, tables, kitchen equipment, food, refreshments, and other support equipment. The wall guard will protect the corridor walls from the constant movement of staff and equipment to ensure the walls are not damaged over time. The wall guard also ensures that critical equipment such as sound systems and HVAC systems are protected by the wall guard.
This action item authorizes City staff to task an existing Job Order Contract with Tejas Premier for the installation of aluminum plate wall guard and reduce this expense from the existing Design-Build Contract with Hunt-Zachry, A Joint Venture which will provide an approximate savings of $150,000.00 to the project.
Additionally, utilizing Tejas Premier will allow the project greater flexibility in accomplishing the work around the convention center’s busy schedule.
ALTERNATIVES:
City Council can choose to not approve this requested deductive change order and job order contract, however it is estimated that this same project improvement would cost the City an additional $150,000 more than the job order contract pricing since the terms of the Hunt-Zachry contract would need to be amended to add days to the final completion date and impact the agreed upon terms of the General Conditions in order to complete the requested tasks.
FISCAL IMPACT:
This is one-time capital improvement expenditure in the amount of $199,877.40 payable to Tejas Premier Building Contractor, Inc and funded from Texas Public Facility Corporation Contributions, as included in the FY 2017 - 2022 Capital Improvements Program.
RECOMMENDATION:
Staff recommends approval of this ordinance authorizing a deductive change order to the existing Design-Build Contract with Hunt-Zachry , A Joint Venture , decreasing the contract amount by $199,877.40 for a total contract value not to exceed $306,800,122.60 for the Henry B. Gonzalez Convention Center Expansion Project and authorizing a Job Order Contract with Tejas Premier Building Contractor, Inc. in an amount not to exceed $199,877.40 to support the HBGCC Expansion Project in the installation of aluminum plate wall guard.