Bill Summary – FastDemocracy

MURIEL BOWSER

     MAYOR

March 5, 2024

Honorable Phil Mendelson

Chairman

Council of the District of Columbia

John A. Wilson Building

1350 Pennsylvania Avenue, NW, Suite 504

Washington, DC 20004

Dear Chairman Mendelson:

Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code § 1-

204.51) and section 202 of the Procurement Practices Reform Act of 2010 (D.C. Official Code §

2-352.02), enclosed for consideration and approval by the Council of the District of Columbia is

proposed Modification No. 3 to Contract No. DCAM-21-CS-RFP-0013 with MCN Build, Inc. If

approved, Modification No. 3 will increase the contract’s not-to-exceed amount by $1,767,687.08,

from $58,800,937 to $60,568,624.08.

The underlying contract was deemed approved by the Council on July 7, 2022, as CA 24-0581, as

an early start agreement for an initial phase of the design-build services required to renovate and

modernize Garfield Elementary School.

Under proposed Modification No. 3, MCN Build, Inc. will accelerate their schedule and complete

additional work required by unforeseen conditions in the field. The substantial completion date for

the project is July 15, 2024.

My administration is available to discuss any questions you may have regarding this contract

modification. In order to facilitate a response to any questions you may have, please contact Delano

Hunter, Director, Department of General Services (“DGS”), or have your staff contact George G.

Lewis, Chief of Contracts and Procurement, DGS, at (202) 727-2800.

I look forward to the Council’s favorable consideration of this contract modification.

Sincerely,

Muriel Bowser

                    GOVERNMENT OF THE DISTRICT OF COLUMBIA

                         Office of Contracting and Procurement

Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended, D.C.

Official Code § 2-352.02(c), the following contract summary is provided:

                               COUNCIL CONTRACT SUMMARY

                                        (Standard)

              Modification No. 3 to Design-Build Services for Garfield Elementary School

(A) Contract Number:                     DCAM-21-CS-RFP-0013

                                         Modification No. 3

    Contractor:                          MCN Build, Inc.

    Proposed Increased Contract

    Amount via Modification No. 3:       $1,767,687.08

    Proposed Total Contract

    Amount (GMP):                        $60,568,624.08

    Unit and Method of Compensation: Progress Payments on a monthly basis

    Term of Contract:                    From January 24, 2022 (the date of the execution of the

                                         Letter Contract) through July 15, 2024 (the “Substantial

                                         Completion Date”), with an Administrative Term Date of

                                         October 15, 2025

   Type of Contract:                     Cost Plus Fixed Fee with a Guaranteed Maximum Price

                                         (“GMP”)

    Source Selection Method:             Competitive Request for Proposal

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(B) For a contract containing option periods, the contract amount for the base period and for each

    option period. If the contract amount for one or more of the option periods differs from the

    amount for the base period, provide an explanation of the reason for the difference:

    N/A

(C) The goods or services to be provided, the methods of delivering goods or services, and any

    significant program changes reflected in the proposed contract:

    The Department of General Services (the “Department”) engaged the Contractor to provide

    construction Design-Build services for the modernization of Garfield Elementary School

    (“Garfield ES”) located at 2435 Alabama Avenue SE, Washington, DC 20007 (the “Project”).

    The underlying Contract was deemed approved by the Council as CA24-0581 on July 7, 2022, with

    a not-to-exceed (“NTE”) amount of $5,393,069.00 for an early release of funds for the initial phase of

    the Project. Modification No. 1 to the Contract was approved by Council on December 9, 2022, under

    CA24-0745, and increased the NTE amount by $12,303,488.00, totaling $17,696,557.00 for additional

    early release work. Modification No. 2 to the Contract was approved by Council as CA25-0266 on

    June 24, 2023, and established the Contract’s GMP in the amount of $58,800,937.00.

    The Department now seeks Council approval to execute proposed Modification No. 3. If approved,

    proposed Modification No. 3 will accelerate the Project schedule to maintain the Substantial

    Completion date of July 15, 2024, and will increase the Contract’s GMP by $1,767,687.08, from

    $58,800,937.00 to $60,568,624.08.

    The additional work under proposed Modification No. 3 is necessary to complete the Project and

    includes additional work, including: (1) door hardware; (2) lowering the geothermal wells to

    accommodate for future PV canopy; (3) historical well fill and demolition; (4) additional abatement;

    (5) window knee wall structural reinforcement in the 1950 building; (6) additional lintels and beams

    to support the historical 1909 chimney; (7) maintaining planned program space; (8) 1950 building’s

    north foundation wall reinforcement; (9) cellular reinforcement to provide cellular reinforcement to

    the entire campus on all levels; (10) accelerated recovery schedule to maintain the Substantial

    Completion date of July 15, 2024; and (11) rebuilding the terrace. Additional work is required due

    to items related to the owner’s directives and unforeseen conditions discovered in the field by the

    Design-Build team after the GMP was approved and executed. As the proposed Modification No. 3

    Contract value is more than $1 million, Council approval is required for this contract action.

(D) The selection process, including the number of offerors, the evaluation criteria, and the

    evaluation results, including price, technical or quality, and past performance components:

    The underlying Contract was competitively bid and previously submitted to and approved by the

    Council as CA24-0581 on July 2, 2022.

(E) A description of any bid protest related to the award of the contract, including whether the

    protest was resolved through litigation, withdrawal of the protest by the protestor, or

                                                   2

    voluntary corrective action by the District. Include the identity of the protestor, the grounds

    alleged in the protest, and any deficiencies identified by the District as a result of the protest:

    The award of the Contract was not protested.

(F) A description of any other contracts the proposed contractor is currently seeking or holds with

    the District:

    The Contractor is currently involved in several District projects and is in pursuit of many other

    District projects. The list of projects is provided as Exhibit A.

(G) The background and qualifications of the Contractor, including its organization, financial

    stability, personnel, and performance on past or current government or private sector contracts

    with requirements similar to those of the proposed contract:

    The Contractor is based in Washington, DC, a Certified Business Enterprise (“CBE”), and a general

    contractor specialized in construction management, general contracting for institutional, schools,

    health care facilities, and consulting services. The Contractor has completed multiple school

    modernization projects for DGS including:

   Contract Number                Project Caption                                 Project Value

   1. DCAM-19-CS-RFP-0058         CMAR Capitol Hill Montessori at Logan           $57,757,844.88

                                  (CHML) Campus.

   2. DCAM-19-CS-RFP-0001         CMAR The Thaddeus Stevens School                $20,488,157.00

   3. DCAM-19-CS-RFP-0045         DB Services Benjamin Banneker High              $135,097,998.00

                                  School

   4. DCAM-17-CS-0005             DB Services MacFarland Middle School            $58,456,526.00

   5. DCAM-17-CS-0132             DB Services Jefferson Middle School             $74,410,762.00

                                  Modernization

   6. DCAM-17-CS-0026             DB Services Kimball Elementary School           $51,755,439.00

   7. DCAM-17-CS-00127            DB Services Houston Elementary School           $52,568,237.59

   8. DCAM-17-CS-0131             DB Services C.W. Harris Elementary School       $50,489,666.49

                                  Modernization

                                                    3

    The Contractor possesses the financial stability to successfully perform the Project and has provided

    a staffing plan for the Project that has been reviewed and approved by the Department. The Contractor

    has been determined responsible in accordance with 27 DCMR 4706.1.

(H) A summary of the subcontracting plan required under section 2346 of the Small, Local, and

    Disadvantaged Business Enterprise Development and Assistance Act of 2005, as amended, D.C.

    Official Code § 2-218.01 et seq. (“Act”), including a certification that the subcontracting plan

    meets the minimum requirements of the Act and the dollar volume of the portion of the contract

    to be subcontracted, expressed both in total dollars and as a percentage of the total contract

    amount:

    The Contractor is a certified business enterprise in accordance with the Act (CBE Number:

    LR17456042025). Pursuant to D.C. Code § 2-218.46 (d-1), the Contractor shall submit a detailed

    subcontracting plan to DSLBD that meets the requirements of D.C. Code § 2-218.46(d), before

    entering into a guaranteed maximum price. The Contract’s NTE amount of $2,454,210.00 is for

    design and preconstruction deliverables performed by the Contractor.

    Contract’s NTE Dollar Value                             $60,568,624.08

    Subcontracting Requirement %                            35%

    Subcontracting Plan Required Dollar Value               $21,199,018.40

    Subcontracting Plan Actual Dollar Value                 $30,702,780.00

(I) Performance standards and the expected outcome of the proposed contract:

    The Contractor is required to provide all design, preconstruction, and construction services and other

    services necessary to substantially complete the Project no later than July 15, 2024. In general, the

    Contractor must perform the requirements contained in the Contract and meet or exceed the

    performance standards therein. The Contractor is subject to liquidated damages of $500 per day of

    delay for failure to timely achieve substantial completion of the Project. The Contract also provides

    a disincentive fee of $25,000 for the replacement of key personnel without the Department’s prior

    approval and not as a penalty, to reimburse the Department for its administrative costs arising from

    the Contractor’s failure to provide the key personnel.

(J) The amount and date of any expenditure of funds by the District pursuant to the contract prior

    to its submission to the Council for approval:

    None.

(K) A certification that the proposed contract is within the appropriated budget authority for the

    agency for the fiscal year and is consistent with the financial plan and budget adopted in

    accordance with D.C. Official Code §§ 47-392.01 and 47-392.02:

    The Office of the Chief Financial Officer has certified that the proposed Modification No.3’s NTE

    amount is consistent with the Department’s budget and that adequate funds are available in the

    Department’s budget in accordance with §§47-392.01 and 47-392.02. The applicable Fiscal

    Sufficiency certification accompanies this Council Package.

                                                   4

(L) A certification that the contract is legally sufficient, including whether the proposed contractor

    has any pending legal claims against the District:

    The proposed Modification No. 3 has been deemed legally sufficient by the Department’s Office of

    the General Counsel and the Contractor does not appear to have any currently pending legal claims

    against the District.

(M) A certification that the Citywide Clean Hands database indicates that the proposed contractor

    is current with its District taxes. If the Citywide Clean Hands Database indicates that the

    proposed contractor is not current with its District taxes, either: (1) a certification that the

    contractor has worked out and is current with a payment schedule approved by the District; or

    (2) a certification that the contractor will be current with its District taxes after the District

    recovers any outstanding debt as provided under D.C. Official Code § 2-353.01(b):

    The Citywide Clean Hands database indicates that the Contractor is in compliance with the

    Government of the District of Columbia tax laws and regulations. The applicable Clean Hands

    certification for the Contractor accompanies this Council Package.

(N) A certification from the proposed contractor that it is current with its federal taxes, or has

    worked out and is current with a payment schedule approved by the federal government:

    The Contractor has certified that it is current with its federal taxes.

(O) The status of the proposed contractor as a certified local, small, or disadvantaged business

    enterprise as defined in the Small, Local, and Disadvantaged Business Enterprise Development

    and Assistance Act of 2005, as amended; D.C. Official Code § 2-218.01 et seq.:

    According to the DSLBD’s website, the Contractor is a certified Local Business Enterprise, Longtime

    Resident Business, and Small Business Enterprise. The Contractor’s CBE Number is

    LR17456042025, with an expiration date of April 18, 2025.

(P) Other aspects of the proposed contract that the Chief Procurement Officer considers

    significant:

    None.

(Q) A statement indicating whether the proposed contractor is currently debarred from providing

    services or goods to the District or federal government, the dates of the debarment, and the

    reasons for debarment:

    The Contractor is not debarred from providing services to the Government of the District of Columbia

    or the Federal Government according to the Office of Contracts & Procurement’s Excluded Parties

    List and the Federal Government’s Excluded Parties List.

                                                      5

(R) Any determination and findings issues relating to the contract’s formation, including any

    determination and findings made under D.C. Official Code § 2-352.05 (privatization contracts):

    None.

(S) Where the contract, and any amendments or modifications, if executed, will be made available

    online:

    The Contract award and the Contract are available on the Department’s website. A copy of the

    proposed modification will be made available on the Department’s website upon approval.

(T) Where the original solicitation, and any amendments or modifications, will be made available

    online:

    The original solicitation and any amendments were posted on the Department’s website.

(U) (1) A certification that the proposed contractor has been determined not to be in violation of

    section 334a of the Board of Ethics and Government Accountability Establishment and

    Comprehensive Ethics Reform Amendment Act of 2011, D.C. Official Code § 1-1163.34a; and

    (2) A certification from the proposed contractor that it currently is not and will not be in

    violation of section 334a of the Board of Ethics and Government Accountability Establishment

    and Comprehensive Ethics Reform Amendment Act of 2011, D.C. Official Code § 1-1163.34a:

    Based upon a certification from the Contractor, the Contractor has been determined not to be in

    violation of D.C. Official Code § 1-1163.34a; and will not be in violation of D.C. Official Code § 1-

    1163.34a.

                                                   6

                                             Exhibit A

   Contracts that MCN Build, Inc. is currently seeking or holds with the District:

                                  Projects Held With The District Agency

  Contract Number                             Project Caption                        Project Value

1. DCAM-23-CS-RFP-0008 Tubman Elementary School Modernization                        $79,000,000.00

2. DCAM-23-CS-RFP-0017 MacArthur High School Expansion                               $72,000,000.00

                            Modular Campus at Nalle for Drew Elementary

3. DCAM-23-CS-RFP-0018                                                               $31,000,000.00

                            Modernization

4. DCAM-22-CS-RFP-0018 Browne Education Campus Modernization                         $88,000,000.00

                            Fort Lincoln Park And New Recreation And Early

5. DCAM-22-CS-RFP-0002                                                               $29,000,000.00

                            Childhood Education Center

                            School Without Walls at Francis Stevens Education

6. DCAM-21-CS-RFP-0019                                                               $97,330,825.00

                            Campus.

                    Projects Currently Seeking With The District Agency

  Contract Number                             Project Caption                        Project Value

                            Burroughs Elementary School Modernization &

1. DCAM-24-CS-RFP-000                                                                $81,000,000.00

                            Modular Campus Swing Site

                            Martin Luther King Jr. Elementary School

2. DCAM-24-CS-RFP-0004                                                               $57,000,000.00

                            Modernization

                            Construction of New Douglass Community Center

3. DCAM-23-CS-RFP-0035                                                               $20,000,000.00

                            Building &Pool

                            Construction Management At-Risk Services For The

4. DCAM-23-CS-RFP-0036                                                               $28,300,000.00

                            Modernization Of The Crummell Community Center

                                                                                     $27,500,000.00

5. DCAM-23-CS-RFP-0037 New Fort Davis Community Center Building

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                  Government of the District of Columbia

                  Office of the Chief Financial Officer                                                1101 4th Street, SW

                  Office of Tax and Revenue                                                            Washington, DC 20024

Date of Notice:   January 30, 2024                                             Notice Number: L0010853539

MCN BUILD INC                                                                  FEIN: **-***3429

1214 28TH ST NW                                                                Case ID: 1832227

WASHINGTON DC 20007-3315

                                           CERTIFICATE OF CLEAN HANDS

    As reported in the Clean Hands system, the above referenced individual/entity has no outstanding

CO

    liability with the District of Columbia Office of Tax and Revenue or the Department of Employment

    Services. As of the date above, the individual/entity has complied with DC Code § 47-2862, therefore

    this Certificate of Clean Hands is issued.

               TITLE 47. TAXATION, LICENSING, PERMITS, ASSESSMENTS, AND FEES

                                 CHAPTER 28 GENERAL LICENSE

             SUBCHAPTE