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Agenda Item # 13

BOARD MEMORANDUM

RECOMMENDATION:

Authorize the General Manager to execute an amendment to the contract with Jacobs Engineering, Inc. for Design Services During Construction in the amount of $99,900 for the North Division Construction Completion Project and authorize payment of $212,000 for additional final design services for a total augmentation of $311,900 bringing the Board authorized Jacobs Engineering Inc. contract total to $­­­2,645,937.

BACKGROUND: 

The North Division Reconstruction Project is providing a new facility that accommodates articulated buses, expands the yard for standard and articulated buses, addresses current deficiencies and mitigates impacts to the site from the new 85/101 North Interchange.  The overall budget for the project is $39,334,934.

On October 1, 1998, the Board of Directors authorized the General Manager to execute an agreement with Sverdrup Facilities Inc. for Design Services for the North Division Reconstruction in an amount of $2,029,597 plus a 15% contingency for a contract total of $2,334,037.  Sverdrup Facilities Inc. was acquired by Jacobs Engineering Inc. (Jacobs) at the start of construction of the North Division.

On June 1, 2000, the Board of Directors authorized award and execution of a contract with Dennis J. Amoroso Construction Co., Inc. for the reconstruction of North Division.  The construction program by Dennis J. Amoroso Construction Co., Inc. resulted in mutual agreement to close out the contract after the completion of 81 percent of the work as approved by the Board of Directors on January 9, 2003.

Jacobs re-packaged the remaining work into a North Division Construction Completion Project.  The Completion Project was recently awarded to Vitton Construction and includes completion of the fuel island, construction of the bus wash and wastewater treatment facility, asphaltic concrete bus parking pavement repair, perimeter site landscaping and bid alternatives for the detail cleaning/inspection/tire building (Building C), completion of the employee amenity area and additional employee parking.

DISCUSSION: 

This amendment will cover North Division Reconstruction Project Design services performed between February 2002 and October 2002.  During this period of time, VTA and Jacobs were working aggressively to correct design errors made by the original project design firm, Sverdrup Facilities, Inc.  At the same time, VTA was working with the construction contractor on the project to attempt to keep the project on schedule while design changes and corrections were being made.  No payments were made to Jacobs for design work during this period pending a full review to determine what work constituted additional scope and therefore additional compensation versus rework for design errors, which is not compensable.  Jacobs has submitted billings for the design work that both VTA and Jacobs agree is additional work and not a result of design errors.  The billings for additional design work total $212,000. 

Facilities Design requested a proposal from Jacobs Facilities Inc. to provide Design Services During Construction on the North Division Construction Completion contract.  The proposal was negotiated down to $99,900 to address only the most critical requirements for this project.  This will be a cost plus fixed fee contract for approximately 890 estimated labor hours.

ALTERNATIVES:

There are no practical alternatives to the recommended action. 

VTA has evaluated whether the design support services during construction could be done in-house with VTA engineers, however, this is not recommended in order to keep the designer responsible for any changes to the design.

FISCAL IMPACT:

Sufficient funds are available for this amendment.  An amount of $311,900 will be transferred from VTAs Capital Project Contingency Reserve to the North Division Reconstruction Project.

DISADVANTAGED BUSINESS ENTERPRISE (DBE) PARTICIPATION:

The DBE goal for this contract will remain at 18% through completion of services.

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