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File #: 26-4    Version: 1
Type: Informational Report Status: Filed
In control: City Council
On agenda: 2/9/2026 Final action: 2/9/2026
Title: Final evaluation of the Design-Build alternative contracting method used for the Salem Public Works Operations Building. Ward(s): All Wards Councilor(s): All Councilors Neighborhood(s): All Neighborhoods Result Area(s): Safe, Reliable and Efficient Infrastructure
Attachments: 1. Post Project Evaluation Report.pdf
Related files:

TO:                      Mayor and City Council   

THROUGH:                      Krishna Namburi, City Manager   

FROM:                      Brian D. Martin, PE, Public Works Director  

                                          

SUBJECT:

title

 

Final evaluation of the Design-Build alternative contracting method used for the Salem Public Works Operations Building.    

 

Ward(s): All Wards    

Councilor(s): All Councilors    

Neighborhood(s):  All Neighborhoods    

Result Area(s): Safe, Reliable and Efficient Infrastructure

end

 

SUMMARY:

summary

 

Oregon Revised Statute 279C.355 (ORS) requires contracting agencies to submit evaluations for public contracts that have been exempted from the competitive bidding process to the local contract review board, which is the City Council, after the projects are complete.  The project is now complete, and the Post Project Evaluation Report is attached (Attachment 1). 

 

The Report concludes that the Salem Public Works Operations Building project successfully realized the intended benefits of the PDB method, including:

                     Enhanced cost control through early contractor involvement and iterative value engineering

                     Improved decision-making supported by accurate cost, schedule, and constructability information

                     Stronger teamwork and communication across all project partners

                     Reduced risk of disputes due to a unified contract structure and collaborative approach

                     Minimized change orders and associated administrative costs

 

The project was delivered efficiently and resulted in a modern, functional facility that supports the operational needs of the City of Salem’s staff and the community they serve.  

end

 

ISSUE:

 

Information only.

 

 

RECOMMENDATION:

recommendation

 

Information only.    

 

body

 

BACKGROUND:

 

In accordance with State statutes and City procurement rules, typical City public improvement projects use a competitive bidding process where construction contracts are awarded to the lowest responsive bidder. For specific, complex projects with significant technical, budget, or schedule-related challenges, the City may employ alternate contracting processes to mitigate risk. These alternate processes allow for consideration of other factors such as qualifications and experience in addition to the cost of the work. Per the requirements of ORS 279C.355, the alternate process must be approved for an exemption from competitive bidding by the local contract review board. Recent projects that have been authorized to proceed with alternate contracting include the Ozone Treatment Facility at Geren Island, the Salem Public Library Improvements, the Salem Police Station, and the Civic Center Seismic Improvement project. In September 2020, City Council adopted findings in support of an exemption from the competitive bidding process and authorized the use of a Design-Build contracting method for design and construction of the Salem Public Works Operations Building. HSW was awarded the contract, and they have completed the work. The have notified the City that all costs have been invoiced, and the contracts can be closed.    

 

                     Allen Dannen, PE     

                     City Engineer    

 

Attachments:

1. Post Project Evaluation Report