October 23, 2024
Rialto, CAAdvanced Metering Infrastructure System project (AMI)
2 AMI project - Update
● Addendum No. 3 was issued on September 27, 2024, soliciting Best and Final Offer (BAFO) for the project. The contractor finalists were given the opportunity to discuss their proposals with the RFP evaluators and in doing so, had the opportunity to clarify scope of work, discover gaps, omissions, and areas requiring further refinement. All three finalists responded and the results of this effort are presented in the table below.
3 AMI project - Addendum No. 3 analysis
● USG is not only the lowest bidder, it also had received the highest scores during RFP evaluation in all categories. This suggests the lowest level of inherent risk as many unknowns have been included in the USG base bid rather than as a contingency. ● In the AMI industry the common practice is not to provide a guaranteed maximum price for projects, but instead to provide a bid with contingencies because of unknowns around a large number of sites (12,200 sites).
● The site survey is a preferred industry tool aimed at assessing site conditions early in the project, finalizing the materials order, and providing the client with the best possible estimate of the final cost.
● Contractors typically do not rely on third party data and prefer a more comprehensive approach to conducting the site survey. RWS/Veolia are aware of the City's argument that the information the contractor is seeking should have been collected as part of asset management. We recommend that this discussion should be separated from the selection of the AMI contractor due to time concerns.
4 AMI project - Veolia fee
● Veolia is reducing their typical 20% management fee to 15% in the spirit of partnership, allowing the City to go forward with the project and remain the beneficiary of the substantial outside grants awarded to the project.
● Veolia is confident that the recommended selection of USG as a contractor, will ensure on-time and on-budget delivery of the project.
5 AMI project - Project allowances
● RWS/Veolia recommends an owner's allowance of $507k.
● This allowance is optional, but is considered good practice to facilitate and accelerate the approval of change orders that may arise in the project. ● Including the owner's allowances would increase the total project cost to approximately $8.7 MM.
● RWS/Veolia is seeking direction from the WSC as to whether to include this contingency or not.
6 AMI project - Main project figures
● $6,101,270.00 - USG Base Bid
● $1,049,075.00 - USG Contingency assumption (optional) ● $7,150,345.00 - Total
● $1,072,551.75 - 15% Veolia fee
● $507,900.00 - Owner’s allowances
● $8,730,796.75 - Project total
AMI project - Recommendation
● RWS/Veolia recommends approval of USG as the selected contractor based on a competitive bidding and selection process.
● RWS/Veolia will work closely with the City on approval of all contingent items during the development of the project.
7 AMI project - Conclusions
● 7 years of efforts by RWS/Veolia and the City have resulted in a very good bid and an excellent team to carry this project to conclusion.
● The City has an opportunity to complete this project almost entirely with grant money. ● Staff is ready to receive your direction to craft a FCWA and staff report for your approval at the November 12 Council Meeting.
● Questions?
8 USG contingency / Owner’s allowances