Recommend approval to procure construction manager at risk (CMAR) services from AECOM Hunt in the amount of $11,166,016.00. These services will be used to manage construction for the development of an approximately 269,000-square-foot arena. The engagement of a construction manager at risk will minimize project risks and maximize this opportunity. The proposed arena will contain approximately 9,000 seats, 12 luxury suites, and 450 club seats. Parking for the arena will be a combination of surface and structure parking totaling approximately 3,000 spaces. Structured parking will be a separate project and will consist of three or more garages adjacent to and in the general vicinity of the arena.

The method of procurement used for this event was the request for proposals (RFP), which evaluates criteria in addition to costs. The criteria used for this RFP were relevant firm experience, experience and qualifications, project understanding, approach to project management, fees, DBE vendor participation, and local vendor participation.

The $11,166,016.00 in fees included in this Agenda item is a correction from the $7,316,016.00 in fees included in the Agenda description originally published August 24. The reason for the discrepancy is a misreading of the fee proposal document submitted by AECOM Hunt. The City requested that the proposers express construction manager fees, including overhead and profit, as a percentage of all subcontracted and all self-performed costs. All three proposers provided the percentage of construction manager fees as requested, but the City did not originally recognize that AECOM Hunt did not add that dollar amount to its bottom-line price on the fee proposal document. 

No new information was supplied to the City, and no numbers were changed by the proposers in the process of correcting the total submitted price. AECOM’s price was still the lowest of the three proposers after this correction was made. 

The correct fees submitted by the three proposers were:
AECOM Hunt: $11,166,016.00
JE Dunn Construction: $12,681,512.00
Turner Construction: $13,648,970.00

This change did not change the ranking order. The rankings are:
AECOM Hunt: 80.9 points
Turner Construction: 78.1 points
JE Dunn Construction: 77.7 points

The recommended proposer was deemed compliant with the established DBE provisions, and has proposed 25% DBE participation. Individual subcontractors cannot be identified until the design of the arena is substantially completed and a guaranteed maximum price has been established. 
 

Approval