Agenda

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C. 79

To:	Board of Supervisors
From:	Brian M. Balbas, Public Works Director/Chief Engineer
Date:	April 4, 2023

Contra

Costa

County

Subject:

Terminate contract with Skanska USA Building Inc., and approve a contract with Vanir Construction Management, Inc.

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 04/04/2023

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor

ABSENT:

Ken Carlson, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Jeffrey K Acuff 925-957-2487

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: April 4, 2023
Monica Nino, County Administrator

BY:	, Deputy

RECOMMENDATION(S):

APPROVE the termination, by the County Administrator, of the Consulting Services Agreement (contract) dated August 9, 2022 with Skanska USA Building Inc. (Skanska) to provide master planning and construction management services for various Measure X funded healthcare projects at the Contra Costa Regional Medical Center (CCRMC), in an amount not to exceed $3,000,000.

APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a contract with Vanir Construction Management, Inc. (Vanir), in an amount not to exceed $6,093,348, to provide master planning, construction management, and architectural services for various Measure X funded healthcare projects at the Contra Costa Regional Medical Center (CCRMC) located at 2500 Alhambra Avenue and 20 Allen Street in Martinez, CA for the period April 4, 2023 to April 3, 2028.

FISCAL IMPACT:

The fee earned by Skanska for services already performed is not yet known, but will be less than $220,000, which is the full amount which has been authorized. Ultimately, the fiscal impact is estimated to be a loss of between $100,000 and $200,000. 100% Measure X funding budgeted in Hospital Enterprise Fund.

BACKGROUND:

On December 14, 2021, the Board approved Measure X funding to update the CCRMC master plan and complete five improvement projects at the CCRMC campus: a Public Health Laboratory, a Parking Structure, a Medical Office Building, an Interventional Radiology Suite and a Psychiatric Emergency Services addition and remodel.

Public Works subsequently issued a Request for Qualifications (RFQ), soliciting Statements of Qualification (SOQs) from consulting firms to provide master planning and construction management services. Public Works received six SOQs from interested firms and short-listed three. A selection committee comprised of County staff conducted interviews and ranked Skanska as the top-ranking firm followed by Vanir.

On August 9, 2022, the Board approved a Consulting Services Agreement with Skanska in an amount not to exceed $3,000,000 to provide master planning services and construction management services for the five noted improvement projects.

On September 20, 2022, Public Works approved Task Order Number 01 with Skanska, in an amount not to exceed $220,000, authorizing Skanska to proceed with pre-master planning services.

Since that time, County staff at Health Services, Public Works and the County Administrator’s Office have become dissatisfied with the content and pace of work produced by Skanska, have lost confidence in Skanska’s ability to perform up to the standards needed for a successful outcome, and have come to a consensus that the best course of action for the benefit of the upcoming CCRMC development is to terminate the Skanska contract and pursue other options.

The Consulting Services Agreement with Skanska allows for the County to terminate the contract at its option whether or not the Consultant is then in default. Public Works therefore recommends that the contract be terminated. Public Works further recommends, then, that Vanir, the next highest graded RFQ qualifier, be hired.

The contract with Vanir includes additional scope to provide design services for the two Measure X projects that are not dependent on master planning: the expansion and remodel of the interventional radiology suite and of the psychiatric emergency services area. That added scope represents $1,402,500 of the fee increase.