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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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Anq GuerreroL ...........
MAYOR
MA S:ABN; 10160015t
CAO ii-ig-d
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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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GAO File No.0150-10486-0000
PAGE2
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
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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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PAGECAO File Mo.0150-10486-0000 4
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,
MAS:ABN:10160015