Award Contract No. PRO.0205
Water Capital Program Management Contract
December 10, 2024
Katie Miller, Director Water Capital Programs
Infrastructure Division
1 SFPUC Regional Water System
2 Water Enterprise 10-Year Capital Plan
Hetch Hetchy Water CIP: $1.5 Billion
• Aging facilities, many over 100 years old
Regional Water CIP: $1.6B
• Aging facilities, including dams and large pipelines
• Treatment plant improvements
• Rehabilitation and expansion of Millbrae Campus
• Future Alternative Water Supply projects
Local Water CIP: $1.3B
• Ongoing water main replacement
• New SF Water Division Yard at 2000 Marin
3 Transition to Sustainable Asset Management
and Strategic Capital Planning
$
Time
R&R
Capital
$
Time
R&R
Capital
Capital
2005-2032 Water System
Improvement Program (WSIP):
One-time large investment
Water Enterprise and Hetch
Hetchy Water CIP:
Adaptive Management
(moving forward)
R&R = Renewal and Replacement
PRO.0205 Water Capital Program
Management Contract
• Services Provided:
• • Program Administration
• • Strategic Capital Planning
• • Program Delivery
• • Project Technical Support
• $80 Million budget over 10 years
• • One-time and ongoing programmatic support services
• • Specialized expertise
• • Technology transfer and training for staff integration of skills 5 PRO.0205 Selection Process
Four phases of Selection Process:
• Technical Written Proposal
• Diversity, Equity, and Inclusion (DEI) Submittal
• Technical Oral Interview
• Social Impact Partnership Submittal bonus evaluation
Three qualified teams submitted proposals and were invited to oral interviews.
Four technical evaluation panelists from SFPUC, SF Public Works, and East Bay Municipal Utility District scored written proposals and oral interviews.
6 Selection Results & Staff Recommendation
• HDR Stantec Joint Venture had highest score in all
proposal phases.
• Contract LBE requirement is 15%; HDR Stantec Joint
Venture proposal includes 20.83% LBE commitment
utilizing 15 LBE firms.
• No protests were received.
• Staff recommends awarding Contract No. PRO.0205
Water Capital Program Management Contract to HDR
Stantec Joint Venture.
7 Questions?
8 DEPARTMENT Infrastructure Division AGENDA NO. 11
MEETING DATE December 10, 2024
Last updated: 05.03.2023
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Calendar: Regular Calendar
Contract Manager: Katie Miller
Award Contract No. PRO.0205, Water Capital Program Management Contract Summary of
Proposed
Commission Action:
Award Contract No. PRO.0205, Water Capital Program Management Contract, to HDR Stantec Joint Venture , to provide program management consulting services to support delivery of the Water Enterprise and Hetch Hetchy Water Capital Improvement Programs and the Water System Improvement Program, for an amount not-to-exceed $80,000,000 and with a duration of 10 years, subject to Board of Supervisors ’ approval under San Francisco Charter Section 9.118.
Background: On February 13, 2024, by Resolution No. 24 -0032, the San Francisco Public Utilities Commission (SFPUC) adopted the 10-Year Capital Plan for FY2024- 25 through FY2033-34 and includes the Water Enterprise Capital Plan and the Hetch Hetchy Water Capital Plan with cumulative 10 -year budgets of $2,954,803,945 and $1,533,671,239, respectively. To support the Water Enterprise and Infrastructure Division of the SFPUC to successfully deliver the projects within these capital plans, as well as remaining projects under the Water System Improvement Program, the SFPUC
seeks the guidance and
expertise of a program management consultant team to provide programmatic support services.
The objective of the contract is to optimize capital project delivery processes to increase successful completion of high- quality projects within approved scope, schedule and budget. S ervices are requested for an amount not -to- exceed $80,000,000 over 10 years, representing less than two percent of total water capital program cost; this amount and duration are in line with industry standards and best practices for program management support, and are similar to amounts and durations for program management contracts used in the past for the Water System Improvement Program
and Wastewater Capital
Program. The not-to-exceed amount of $80,000,000 was estimated based on various potential program and project support task orders that will be needed over the next 10 years; it is envisioned that processes and skills developed under this contract will be continuously transferred to City staff as new contract needs emerge. The contract services are requested for 10 continuous years to provide continuity and consistency of suppor t since m ost capital projects have durations of 7-15 years.
Agenda Title: PRO.0205, Water Capital Program Management Contract Commission Meeting Date: December 10, 2024
The SFPUC does not currently have a program management services contract for the water capital programs . While the SFPUC’s Water Enterprise and Infrastructure Division have built strong capital planning and implementation practices and procedures, projects frequently experience schedule delays and cost increases for a variety of reasons. The SFPUC seeks support for enhanced project planning, management, and oversight to facilitate cost efficiencies through on-time project delivery, potentially saving ratepayers millions of dollars in delay -related escalation costs on current and future projects , and providing higher confidence in project quality. Delivering programs of this magnitude requires continuous programmatic review and quality management to ensure best practices, response to emerging regulatory requirements, and technological developments are implemented proficiently. The program management consultant team is needed to support project planning requiring highly specialized expertise, including planning for several of the SFPUC’s alternative water supply projects.
In addition to strategic planning and
expertise, the program management consultant will review existing tools and processes and recommend improvements to enhance the SFPUC’s capabilities as well as bring in latest technologies , staff training, r esilience and sustainability practices , and additional support for labor workforce and community benefits programs. Without a program management contract , the Water Enterprise capital projects may continue to experience delays and may not provide the maximum benefit intended from the newly constructed assets.
Delays to replacing the critical aging infrastructure could result in increased frequency and severity of failure of assets, interrupting critical water or power supply to customers for potentially long periods of time.
Scope of Contract: The proposed Water Capital Program Management Contract will provide expertise and services for programmatic and project -level support for th e Hetch Hetchy Water capital projects located from the Sierra Mountains to the Central Valley, Regional Water projects within the greater Bay Area, and Local Water projects within San Francisco. The contract does not include final engineering design nor construction management support services. Services will be requested over the duration of the c ontract by task order to support both programmatic oversight functions and project-level services.
The work under this contract consists of:
• Program Administration;
• Strategic Capital Planning;
• Program Delivery; and
• Project Technical Support.
For programmatic support, the following types of services may be requested:
• Development and updating of a Contract Charter and a Contract Management Plan;
• Document management services;
• Programmatic quality management support;
• Strategic capital planning and programmatic reviews;
• Adaptive management processes;
Agenda Title: PRO.0205, Water Capital Program Management Contract Commission Meeting Date: December 10, 2024
• Asset management integration services;
• Program safety assessments;
• Program risk management;
• Facilities integration support;
• Project labor relations support;
• Diversity, equity and inclusion support;
• Quality assurance and control;
• Communications and public outreach support;
• Operations coordination;
• Program deliverability reviews;
• Adaptation to climate change and other resiliency strategies; • Standards development and review;
• Procedures development and review;
• Technology transfer and training;
• Emerging technologies review; and
• Sustainability implementation.
At the project level, the following types of services may be requested:
• Project planning support and project-specific evaluations; • Technical advisory panels;
• Seismic evaluations and standards updates;
• Hydraulic modeling and systems engineering;
• Value engineering;
• Cost estimating;
• Construction as-built drawing support;
• Asset digitalization;
• Operations testing, training and start-up support;
• Contracts preparation support;
• Project close-out support; and
• Project lessons learned documentation.
In summary, the SFPUC requires the support of consultants with extensive knowledge, experience, and expertise in providing program management pre- construction support services for the Water Enterprise and Hetch Hetchy Water Capital Plans and the Water System Improvement Program . Services may be required on an as -needed, intermittent, or periodic basis over the 10- year capital plan due to peaks in workload and need for specialized expertise to deliver multiple projects simultaneously.
Funding and Costs: Funding Source: Funds will be available for individual task order awards from Project Nos.: 10041697 – Local Water Program Management, and 10041729 – Regional Water Program Management, Hetch Hetchy Project Development projects, and individual projects within the Water Enterprise and Hetch Hetchy Water Capital Improvement Programs.
Total Not-To-Exceed Contract Amount: $80,000,000
Agenda Title: PRO.0205, Water Capital Program Management Contract Commission Meeting Date: December 10, 2024
Schedule: Advertised: June 27, 2024
Estimated Notice-to-Proceed Date: April 1, 2025
Estimated End Date: March 31, 2035
Duration: 10 years
Final Score
Summary:
Scores for the Technical Written Proposal, Diversity, Equity, and Inclusion (DEI) submittal, Oral Interview, Contract Monitoring Division (CMD) Bonus and Social Impact Partnership (SIP) Bonus, if applicable:
Firms
Technical
Written
Proposal
Score
(645)
DEI
Score
(5)
Oral
Interview
Score
(350)
CMD
Bonus
%
SIP
BONUS
Score
(49.75)
Total
Score
(1049.75])
HDR
Stantec, JV 573.505 5.000 273.088 0.000 47.072 898.664
Parsons/GEI,
JV 567.425 5.000 271.388 0.000 40.013 883.825
GHD, Inc. 539.573 5.000 236.638 0.000 36.522 817.732
Note: Scores have been rounded to the third decimal place.
Environmental
Review:
Award of this contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378 because it does not involve any commitment to any specific project that may result in a physical change in the environment and work under the contract will consist of support services only, and no support services during construction of the individual project(s) will be initiated under this contract until any appropriate environmental review under CEQA, if required, has been completed for the individual project(s).
Local Business
Enterprise
Utilization and Non-
Discrimination in
Contracting:
The Contract Monitoring Division established a 15% Local Business Enterprise (LBE) subcontracting requirement for this contract. HDR Stantec Joint Venture committed to a 20.83% LBE subcontractor participation with its bid submittal.
Agenda Title: PRO.0205, Water Capital Program Management Contract Commission Meeting Date: December 10, 2024
Attachment(s): 1. Contract Monitoring Division Memorandum Agenda Title: PRO.0205, Water Capital Program Management Contract Commission Meeting Date: December 10, 2024
PRO.0205 Water Capital Program Management Contract support services area
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) requires the guidance and expertise of a program management consultant team to provide support services to improve delivery of the Water Enterprise and Hetch Hetchy Water Capital Improvement Programs and the Water System Improvement Program . The SFPUC seeks support and expertise for enhanced project planning, management, and oversight to facilitate cost efficiencies through on- time and on- schedule project delivery; programmatic review and qual ity management ; implementation of best practices ; response to emerging regulatory requirements and resiliency goals; and other programmatic and project-specific support services; and
WHEREAS, On June 27, 2024, the SFPUC advertised a Request for Proposals, PRO.0205, Water Capital Program Management Contract, to procure the services of a qualified consultant team to provide these specialized program management consulting services to supplement SFPUC staff for the projects within the Water Enterprise capital improvement programs; and
WHEREAS, The estimated cost of services is for an amount not -to-exceed $80,000,000; and
WHEREAS, Staff anticipates services to begin April 1, 2025 and end March 30, 2035, for a total contract duration of 10 years; and
WHEREAS, SFPUC and Contract Monitoring Division (CMD) staff, upon review of the proposal scores, determined that HDR Stantec Joint Venture is the highest ranked firm based on the established scoring criteria; and
WHEREAS, The CMD established a 15% Local Business Enterprise (LBE) subconsultant participation requirement for this contract and HDR Stantec JV committed to a n LBE subconsultant participation of 20.83%; and
WHEREAS, Award of this contract does not constitute a “project” under the California Environmental Quality Act (CEQA) Guidelines section 15378 because it does not involve any commitment to any specific project that may result in a physical change in the environment and work under the contract will consist of support services only, and no suppor t services during construction of the individual project(s) will be initiated under this contract until any appropriate environmental review under CEQA, if required, has been completed for the individual project(s); and
WHEREAS, Funds for Contract No. PRO.0205, Water Capital Program Management Contract, will be available from Project Nos. 10041697 - Local Water Program Management, 10041729 - Regional Water Program Management, Hetch Hetchy Project Development projects, and individual projects within the Water Enterprise and Hetch Hetchy Water Capital Improvement Programs; now, therefore, be it
RESOLVED, That this Commission hereby awards Contract No. PRO.0205, Water Capital Program Management Contract , to HDR Stantec Joint Venture, for an amount not -to-exceed $80,000,000 and with a duration of 10 years, subject to the Board of Supervisors ’ approval pursuant to Charter Section 9.118.
I hereby certify that the foregoing resolution was adopted by the Public U tilities Commission at its meeting of December 10, 2024.
Director of Commission Affairs
San Francisco Public Utilities Commission
City & County of San Francisco
London N. Breed, Mayor
Office of the City Administrator
Carmen Chu, City Administrator
Contract Monitoring Division
Stephanie Tang, Director
1455 Market Street, Suite 16A, San Francisco, CA 94103 Telephone (415) 554-0630
MEMORANDUM
Date: December 2, 2024
To: Katie Miller, SFPUC
Melissa Ng, SFPUC
From: Adriana Duran, CMD
Subject: CMD Award Memo for PRO.0205 Water Program Management Contract REVISION #1
The Contract Monitoring Division (“CMD”) has reviewed the consultant proposals and supporting documentation and applied the appropriate rating bonuses submitted for the above referenced project. The LBE subconsulting/subcontracting requirement is 15.00% for this project. Based on this review, CMD has determined that the proposals were materially compliant with the pre-award Chapter 14B requirements.1
CMD received three (3) proposals, at the proposal due date, submitted by GHD Inc., HDR Engineering, Inc., Stantec Consulting Services Inc. JV, (“HDR Stantec JV”) and Parsons Joint Venture GEI JV.
Rating Bonus
The rating bonus is not applicable to this contract due to the contract estimated amount exceeding $20 million:
FIRM LBE JV Partner Status, Type and Size Rating Bonus GHD Inc. NA Non-LBE Not applicable
HDR Stantec JV Stantec Consulting
Services Inc.
Non-LBE
Not applicable
Parsons GEI Non-LBE Not applicable
Score Sheets and Score Tabulations
1 The LBE subcontracting participation requirement is under 20% for the following reasons:
The general overview of this contract work is to provide programmatic management services in support of effectively and efficiently delivering infrastructure improvement projects in the Water Enterprise’s 10- Year Capital Plan. This contract requires high-level expertise and global and/or national experience managing large capital programs (greater or equal to $500 million in value) for water or wastewater utilities. While smaller LBE firms can support some of the project-specific tasks or sub-tasks under the contract, the primary focus is program-level oversight that most LBE firms do not have the qualifications or experience to perform. After careful consideration of the scope of work and tasks or sub- tasks that the LBE firms may be qualified to support, the LBE subcontracting participation requirement is set accordingly.
2 The Request for Proposal (“RFP”) indicates that only the highest-ranked proposer from the written evaluation, oral interview evaluation DEI submittal and SIP bonus points will be awarded a contract. CMD has reviewed the score sheets submitted by the panelists and the final score tabulations from the SFPUC. Based on this information, the proposer is ranked as follows:
RANK FIRM
1 HDR Stantec JV
2 Parsons GEI JV
3 GHD Inc.
LBE Subconsultant Participation Requirement
HDR Stantec JV, achieved the highest score. HDR Stantec JV met the 15% Micro/Small -LBE subconsulting participation requirement by listing the following Micro/Small-LBE firms:
Firm Service Status, Type and
Size
LBE
Participation
Chaves &
Associates
Management/Storage,
Database
SF LBE-WBE
(Micro) 0.63%
Climate Adaptive
Systems, LLC
Civil/Water Resources
Engineers
SF LBE-WBE
(Micro) 1.50%
Coord LLC Urban/Regional Planning SF LBE-MBE
(Micro) 1.00%
Effective
Management
Services, LLC
Construction Management,
Admins. Services
SF LBE-MBE
(Micro) 2.50%
Galen CM, Inc. Construction Management
(Staff Aug)
PUC LBE-MBE
(Micro) 1.25%
Hollins Consulting Construction Management
(Utilities)
SF LBE-MBE
(Small) 0.38%
Incommon, LLC
Community
Relationships/Public Affairs
(DEI)
SF LBE-WBE
(Micro) 0.38%
InterEthnica
Community
Relationships/Public Affairs,
Translating Services
SF LBE-WBE
(Micro) 0.94%
Joe Hill Consulting &
Engineering Corp.
Civil/Water Resources
Engineers, Construction
Management
SF LBE-OBE
(Micro) 2.50%
M Lee Corporation
Value/Quality Eng, Database
Dev/Analysis, Construction
Management
SF LBE-MBE
(Small) 2.50%
McGovern
McDonald Engineers
Civil/Water Resources Eng,
Regulatory Comp. Financial
Services
SF LBE-WBE
(Micro)
1.00%
Pathways Climate
Institute, LLC
Urban/Reg. Plan, Env.
Advisory
SF LBE-WBE
(Micro) 0.75%
Smith & Associates Construction Management
(Safety)
PUC LBE-WBE
(Micro) 1.00%
3 SRT Consultants Civil/Water Resources Eng. SF LBE-WBE (Small) 2.50%
Westland
Management
Solutions, Inc.
Database Dev. Analysis
Computer System Services
SF LBE-WBE
(Micro) 2.00%
TOTAL: 20.83%
HDR Stantec JV also listed the following non-LBE firms (with participation).
Non-LBE Firms Service Participation
Data Sciences Group Asset Management Support 0.31%
Katz & Associates Program Communications Lead 2.00%
Law Office of Julian Gross PLA Support 0.25%
Northwest Hydraulic
Consultants Physical Modeling 0.25%
TOTAL: 2.81%
Good Faith Efforts Requirements
HDR Stantec JV utilized Approach A (35% exception) on CMD Form 2B to meet the Good Faith Efforts (“GFE”) Requirements. HDR Stantec JV demonstrated that it met the GFE requirements under Approach A by demonstrating that the proposed LBE sub participation exceeds the sum of the established LBE sub participation requirements by at least 35%.
The RFP indicates that a contract will be awarded to the highest ranked proposer. Based on the foregoing, CMD has determined that HDR Stantec JV has complied with the pre -award Chapter 14B requirements. Should you have any additional questions and/or concerns, please feel free to contact me at [email protected]
.