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
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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.
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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