NEW CDD CAMPUS
AT 2000 MARIN STREET
September 13, 2022
NEW CDD CAMPUS at 2000 MARIN
2 PRO.0232 BACKGROUND
3 PRO.0232 Design Services Agreement
March 31, 2021
September 17, 2021
February 22, 2022
• Advertised PRO.0198
• Advertised PRO.0232
• Commission Award of PRO.0232
ISSUES • Number of Responsive Proposals
• Overhead & Profit Schedule (OPS)
• Conflict of Interest
REMEDIES • Revise RFP
• Conduct robust outreach
• Readvertise RFP
COMMISSION AGENDA ITEM
4 1. RESCIND Resolution No. 22-0039,
Award of Design Services
Agreement, PRO.232
2. TERMINATE Design Services
Agreement PRO.0232 with Mark
Cavagnero Associates (MCA)
QUESTIONS?
5 DEPARTMENT Infrastructure AGENDA NO. 15
MEETING DATE September 13, 2022
APPROVAL:
COMMISSION
SECRETARY Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Terminate for Convenience: Regular Calendar
Project Manager: Shelby Campbell
Terminate for Convenience Agreement No. PRO.0232, New CDD Campus at 2000 Marin Design Services
Summary of Proposed
Commission Action:
Rescind Resolution No. 22-0039 and approve the General Manager’s determination to terminate for the City’s convenience Professional Design Services Agree ment No. PRO.0232 (Agreement), New CDD Campus at 2000 Marin, with Mark Cavagnero Associates (MCA).
Background: On March 31, 2021, the San Francisco Public Utilities Commission (SFPUC) issued a Request for Proposals (RFP) for design services for the New City Distribution D ivision (CDD) Campus at 2000 Marin (Project). The SFPUC received four proposals, only one of which was responsive. The SFPUC chose to reject all proposals and issue a new solicitation in hopes of receiv ing a higher number of responsive proposals.
On September 17, 2021, the SFPUC issued a second RFP for design services for the Project and received three proposals from (1) Mark Cavagnero Associates (MCA), (2) KMD Architects (KMD), and (3) Dreyfuss and Blackford Architecture (DBA). The SFPUC rejected non-responsive proposals from KMD and D BA due to errors in the overhead and profit schedules (OPS) submitted in their respective proposals. So as not to further delay the Project, SFPUC staff recommended award to the sole , qualified proposer that submitted a responsive proposal, MCA.
On February 22, 2022, by Resolution No. 22-0039, t his Commission awarded the Agreement to MCA, subject to Board of Supervisors ’ (BOS) approval as required under Charter Section 9.118, and seeking BOS action that would permit inclusion of the Social Impact Program (SIP) in the Agreement. T he SFPUC then submitted a request to the BOS to approve the Agreement
with an Ordinance seeking BOS
action to exempt the Agreement from the recently enacted legislation prohibiting behested payments that, if adopted, would permit the Contract: PRO.0232, New CDD Campus at 2000 Marin Design Services Commission Meeting Date: September 13, 2022
SFPUC to include in the Agreement SIP commitments proposed by MCA.
After the C ommission awarded the Agreement, Staff learned of a conflict of interest in MCA’s proposal. The principal of one of MCA’s listed subconsultant firms was also a member of the San Francisco Arts Commission’ s Civic Design Review Committee (CDRC). At a CDRC hearing on November 15, 2021, the committee member critiqued and made comments on the project’s design. The member also voted in favor of requiring the SFPUC to address CDRC comments that, if followed, would result in a larger scope of work for the design team. The committee member did not disclose the conflict of interest or recuse himself from the hearing.
On May 4, 2022, the Budget and Legislative Analyst (BLA) issued a report to the BOS’s Budget and Finance Committee, which noted that the two solicitations each received only one responsive proposal, and MCA’s proposal had a higher OPS multiplier than other recent SFPUC design contracts. The BLA issued a report that stated it was a policy decision for the BOS as to whether to reject in order to allow for g reater outreach and increased competition. The SFPUC subsequently learned that it was unlikely to obtain BOS approval.
Under these cir cumstances, th e General Man ager has determined that it is in the best interests of the City to: (1) terminate the Agreement for the C ity’s convenience under Article 8.1 of the Agreement; (2) seek Commission action to rescind its award to MCA; (3) issue a n ew RFP with adjustments to address concerns raised by the BLA; and (4) perform extensive outreach and communication efforts with potential proposers in order to make every effort to receive a higher number o f responsive proposals.
Description of Scope
of Work:
Design of a campus to serve as the new CDD headquarters at 2000 Marin consisting of five buildings, including an office building, two industrial shop buildings, a warehouse, and a parking structure, for a total of approximately 371,000 gross square feet.
Budget & Costs: Funding: Project No. 10037249 - New CDD Headquarters at 2000 Marin
Original Award Amount: $27,800,000
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution rescinding its award of the Agreement and approving the General Manager’s determination to terminate the Agreement for the City’s convenience.
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, On February 22, 2022, by Resolution No. 22- 0039, this Commission approved the selection of Mark Cavagnero Associates (MCA); awarded a profession al services agreement to provide design services under Agreement No. PRO.0232 (Agreement), New CDD Campus at 2000 Marin Design Servic es subject to approval by the Board of Supervisors ; and authorized the General Manager of the San Francisco Public Utilities Commission to execute a professional design services agreement with MCA for an amount not to exceed $27,800,000, and with a duration of five years; and
WHEREAS, Article 8.1 of the Agreement permits the City to terminate the Agreement for the City’s conve nience if the General Manager determines, with the approval of the Commission, that such determination is in the best interest of the City; and
WHEREAS, The General Manager has determined that it is in the best interest of the City for the Commission t o rescind Resolution Number 22- 0039 and approve the General Manager’s determination to terminate the Agreement for the City’s convenience under Article 8.1 of the Agreement; now, therefore, be it
RESOLVED, That this Commission hereby rescinds Resolution No. 22-0039 adopted by the Commission on February 22, 2022, and approves the General Manager’s determination to terminate the Agreement for the City’s convenience, and authorizes the General Manager to take all actions necessary to terminate the Agreement.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of September 13, 2022.
Secretary, Public Utilities Commission