0150-10486-0000TRANSMITTAL

RATE COUNCIL FILE NO.10Eugene D. Seroka, Executive Director Harbor Department SEP 2 4 2015

COUNCIL DISTRICTFROMThe Mayor 15

PROPOSED AWARD OF CONTRACT CONSULTANT: APSI CONSTRUCTION MANAGEMENT MASTER SCHEDULING, COST ESTIMATING AND

CLAIMS MANAGEMENT CONSULTING SERVICES

Transmitted for further processing and Council consideration. See the City Admjrrtstrapve Officer report attached.

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MAYOR

MA S:ABN; 10160015t

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REPORT from

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Date: CAO File No. Council File No. Council District: 15

September 21, 2015 0150-104B6-0000

To: The Mayor

Q - U-Miguel A. Santana. City Administrative OfficerFrom;Correspondence from the Harbor Department dated August 13, 2015; referred bythe Mayor for report dated August 17, 2015

Reference:

Subject: PROPOSED AWARD OF CONTRACT CONSULTANT: APSI CONSTRUCTION MANAGEMENT MASTER SCHEDULING, COST ESTIMATING AND CLAIMS MANAGEMENT CONSULTING SERVICES

SUMMARY

The Harbor Department (Port) Board of Harbor Commissioners (Board) requests approval of Resolution No. 15-7835 authorizing an Agreement for the Award of a Contract Consultant with APSI Construction Management, Incorporated (APSI), APSI provides construction project management services support in areas of project controls, scheduling, estimating and claims analysis services. APSI is based in Irvine, California, and has field offices throughout the country performing construction management services for private and public sector agencies, including ports and airports. The proposed Agreement with APSI will provide for a full-time master scheduler and an on- call estimator that will include a scope of work for scheduling, cost estimating and claims management services for the Port of Los Angeles (POLA) construction projects. The Port states that larger capital improvement projects (CIP) managed by the POLA's Construction Division staff are periodically supported by a consultant team which assists with scheduling, estimating and administering services under a project consulting agreement. The proposed Agreement is for a maximum contract amount of $4,471,912 and contract term of five years from the date of execution.

DISCUSSION

The proposed Agreement with APSI will provide full-time services as a Master Scheduler for larger POLA construction projects, on-call cost estimator and assistance with managing claims from construction contractors and projects. The Master Scheduler supports the construction managers and monitors and maintains a program-wide master schedule of all projects during and after the construction phase, particularly where POLA uses multiple contractors. According to the Port, these services are highly specialized, use unique software applications, and require high levels of training and knowledge, with emphasis in civil, transportation, buildings, and marine-related construction. The Master Scheduler duties will include the following: monitor, review and maintain the schedules for all the construction projects, including equipment, personnel resources, and deliverables; provide oversight to ensure that there are no conflicts between multiple projects; coordinate construction

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activities, milestones, and subcontractors; guide project-specific contract schedulers; perform field observations of projects and attend construction meetings; and, prepare, update and maintain a schedule for projects. In addition, APSI will provide assistance with Port staff for as-needed cost estimating services for projects being advertised, reviewed and verified for contractors’ costs or quotes and services addressing potential claims during construction.

The Port recently completed a similar three-year contract with APSI for a contract amount of approximately $2.7 million to serve as the lead contractor for master scheduling, costs estimating and claims management consulting services. The contract date was executed in July 2012 and ended in July 2015. The Port decided to release a new Request for Proposal (RFP) for the same services and the Board selected APSI as the new contractor. The Port received nine proposals and selected APSI based on Its qualifications and experience in the RFP evaluation areas of construction project scheduling, estimating, claims management personnel, team organization, and other key support personnel. The proposed Agreement is for a maximum contract amount of $4,471,912 and contract term of five years, which will be executed upon date of approval. The proposed Agreement will not include the contingency funding of approximately $200,000, which will be used for additional as-needed services to support contract administration of various construction projects. The Port states that APSI is a 100 percent Small Business Enterprise (SBE)and will use four sub-contractors, The subcontractors are classified as SBE, Very SBEs (VSBE) and Minority, Women or Other Business Enterprises (MBE, WBE, and OBE). Below is a chart on APSI, subcontractors, work description and cost categories and respective business classifications:

BusinessScope of Work ProvidedFirm Contract*Category

SBEMaster Scheduling, Cost Estimating and Claim Management Services

APSI Lead

SBE, OBECost EstimatingO'Conner Construction Management, Irvine, CA.Integrated Engineering Management. San Pedro Steven Davis Consulting,Redondo Beach Kugan & Associates,San Diego_____ __ _

'* Lead contractor (Lead) and sub-contractors (Sub);Estimating will be provided on an as-needcd basis and/or according to contract provisions; P6 (Primavera) Training is scheduling software used by construction industry to create, analyze and monitor schedules for construction projects.

Sub

SBE, VSBE, WBE

Claims Management ConsultingSub

SBE, VSBETraining for Scheduling and EstimatingSub

SBE, VSBE,***P6 Training (by Port staff)SubMBE

The Port states that the proposed Agreement includes provisions to improve staff knowledge by providing in-house training for construction managers in the areas of scheduling fundamentals, conducting time impact analysis, and creating and maintaining construction schedules using applicable software systems. APSI and its sub-contractors also will provide resources to assist with the review and resolution of requests for additional compensation by contractors used by the POLA. The contractors with technical expertise and experience in claims assessment can assist Port staff in reviewing and resolving construction related claim requests, The Port states that although its Construction Division staff has trained and will continue to perform in-house scheduling and

PAGECAO File No.0150-10486-0000 3

estimating, there is still a need for outside services. According to the Port, scheduling and estimating are specialty fields that require years of training and experience to ensure timely completion and delivery of the POLA's projects, by mitigating potential delays during construction and potential claims. The diverse range of academic proficiencies in most construction contracts require expertise and experience in such subjects as architecture, electrical, mechanical, landscape and other areas.

CITY CONTRACT COMPLIANCES

The City Attorney has reviewed and approved the proposed Agreement with APSI as to form. The Port states that APSI has agreed to comply with all applicable City requirements and ordinances. Pursuant to Charter Section 1022, it has been determined that the services can be performed more feasibly and economically by an independent contractor than City employees, because of the technical expertise and experience required, current construction work volume and the commitment of Port employees to other projects. APSI is not obligated to perform any work under the contract in any fiscal year in which no appropriation has been approved by the Board. Notwithstanding, APSI agrees to resume the work in the contract on the same terms and conditions for a period of 60 days after the end of the fiscal year if an appropriation is approved within that period. APSI is responsible for maintaining all insurance and bonds during the 60-day period. The proposed Agreement is deemed terminated if not approved by the Board and the termination will not relieve either party of the liability for any Incurred obligation.

The Port Director of Environmental Management has determined that the proposed Agreement is an administrative activity to hire APSf for construction management sen/ices and is therefore exempt from the requirements of the California Environmental Quality Act (CEQA) in accordance with Article II, Section 2(f) of the Los Angeles City CEQA Guidelines.

The above referenced Resolution No. 15-7835 authorizing APSI Agreement and this report Incorporate revised information received from the Port subsequent to the initial request submittal.

RECOMMENDATIONS

That the Mayor:

1. Approve the Harbor Department (Port) Board of Harbor Commissioners Resolution No, 157835 authorizing an Agreement for the Award of a Contract Consultant with APSI Construction Management Inc., (APSI) to assist and provide construction project management services in areas of project controls, scheduling, estimating and claims analysis services for the Port of Los Angeles capital improvement and construction projects. The proposed Agreement is for a maximum contract amount of $4,471,912 and contract term of five years, from the beginning date of execution, and

2. Return the document to the Port for further processing, including Council consideration.

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FISCAL IMPACT STATEMENT

Approval of the proposed Agreement between Harbor Department (Port) and APSI Construction Management Inc. (APSI) is for a maximum contract amount of $4,471,912 and contract term of five years, from the beginning date of execution. The Port selected APSI through a Request for Proposal (RFP) process to serve as the lead contractor for master scheduling, cost estimating and claims management consulting services. The proposed Agreement will not include the contingency funding of approximately $200,000, which will be used for additional as-needed services to support contract administration of various construction projects. The proposed Agreement will have no impact on the City General Fund.

TIME LIMIT FOR COUNCIL ACTION

Pursuant to Charter Section 373, "Long Term Contracts Approved by Council,’’ and the Los Angeles Administrative Code Section 10.5, “Limitation and Power to Make Contracts,” unless the Council takes action d isapproving a contract that is longer than three years within 60 days after submission to Council, the contract will be deemed approved,

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