Bill Summary – FastDemocracy

MURIEL BOWSER

     MAYOR

June 13, 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

Contract No. DCAM-23-CS-RFP-0017 with MCN Build, Inc., in the not-to-exceed amount of

$14,944,998.00 (including an existing letter contract amount of $995,000.00). The contract has a

substantial completion date of August 5, 2026.

As part of the initial phase of the project, MCN Build, Inc., will provide Design-Build Services for

the expansion of MacArthur High School under its agreement with the Department of General

Services (“DGS”).

My administration is available to discuss any questions you may have regarding the proposed

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

Hunter, Director, 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.

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

                             (Letter Contract or Emergency Contract)

(A) Contract Number:                                     DCAM-23-CS-RFP-0017

    Proposed Contractor:                                 MCN Build, Inc.

    Proposed Contract Amount:                            Not-to-Exceed      (“NTE”)  Amount:

                                                         $14,944,998.00 (includes $995,000,00

                                                         Letter Contract amount)

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

    Term of Contract:                                    September 26, 2023 (date of execution of the

                                                         Letter Contract by the Department) through

                                                         August 5, 2026 (“Substantial Completion

                                                         Date of Part 3”) with an Administrative

                                                         Term of August 16, 2027.

    Type of Contract:                                    Cost Plus Fixed Fee with a Guaranteed

                                                         Maximum Price (“GMP”)

    Source Selection Method:                             Competitive Request for Proposals

(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:

    Not applicable.

(C) The date on which the letter contract or emergency contract was executed:

    The Notice to Proceed & Letter Contract (“Letter Contract”) was executed on September 26, 2023.

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(D) The number of times the letter contract or emergency contract has been extended:

    The Letter Contract has been extended one time. Modification No. 1 to the Letter Contract, executed

    on January 24, 2024, extended the term of the Letter Contract to October 1, 2024.

(E) The value of the goods and services provided to date under the letter contract or emergency

    contract, including under each extension of the letter contract or emergency contract:

    The total value of the services provided to date is $995,000.00, which represents the initial not-to

    exceed (“NTE”) amount established by the Letter Contract.

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

    significant program changes reflected in the proposed contract:

    If approved, the Contract will authorize MCN Build, Inc., (the “Contractor”) to provide Design-

    Build Services for the expansion of MacArthur High School, located at 4530 MacArthur Boulevard,

    NW, Washington, DC 20007 (the “Project”). The Project will be completed in two phases: (i) the

    Design and Preconstruction Phase; and (ii) the Construction Phase. The substantial completion of

    the Project shall occur on or by August 1, 2024 (Part 1), August 1, 2025 (Part 2), and August 5, 2026

    (Part 3).

    The proposed Contract’s NTE amount of $14,944,998.00 is for an early start agreement submission

    and is based on several preliminary anticipated costs for the Project as determined by the Contractor.

    Costs included in this early start agreement includes: (i) full scope of Part 1; (ii) demolition; (iii)

    general conditions; (iv) design fees; (v) design-build fee; (vi) insurance; (vii) allowance for various

    early work in advance of the a full guaranteed maximum price (“GMP”) package and (vii) bond

    before a full GMP package.

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

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

    On May 30, 2023, the Department issued a Request for Proposals (“RFP”) to engage a design-builder

    for the Project.

    The RFP was posted on the Department’s website on May 30, 2023, and a Pre-Proposal Conference

    and site walk were held on June 2, 2023, at 4530 MacArthur Blvd NW, Washington, DC 20007. The

    Proposal Due Date was initially set for July 7, 2023, and was extended to July 14, 2023. There were

    four (4) addenda issued to this RFP.

    Addendum No. 1, issued on June 2, 2023:

         1. Provided the sign-in sheet and business cards from the pre-proposal conference and site

            visit held on June 2, 2023, at 4530 MacArthur Boulevard, NW, Washington, DC 20007.

    Addendum No. 2, issued on June 22, 2023:

         1. Provided questions and answers about the RFP.

         2. Revised Attachment A2 (District of Columbia Public Schools (“DCPS”) Educational

            Specifications (“Ed Specs”) 2017 (“HS Program”)) of the RFP.

         3. Provided Zoning Memo.

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      4. Scheduled additional site visit for June 28, 2023, at 1:00 P.M. at 4530 MacArthur

         Boulevard NW, Washington, DC 20007.

      5. Extended proposal due date to July 10, 2023, at 2:00 P.M.

Addendum No. 3, issued on June 28, 2023:

     1. Incorporated Attachment M (Form of Contract) into the RFP.

     2. Incorporated Attachment N (Form of Notice to Proceed and Letter Contract) into the RFP.

     3. Revised Attachment C (Form of Offer Letter) of the RFP.

     4. Extended the proposal due date to July 14, 2023, at 2:00 P.M.

Addendum No. 4, issued on June 29, 2023:

     1. Provided the sign-in sheet from the second site visit held on June 28, 2023, at 4530

     MacArthur Boulevard NW, Washington, DC 20007.

Proposal Submissions:

On the proposal due date, July 14, 2023, seven (7) firms collectively submitted proposals, some of

which were joint ventures.

Technical Evaluation Process:

Each Offeror’s technical proposal was independently evaluated by a Technical Evaluation Panel

(“TEP” or “Panel”).

A kick-off meeting was held with the Panel on July 20, 2023. The kick-off meeting established a

schedule for the evaluation of proposals and discussed in detail the roles and responsibilities of the

Panel. In addition, each Panel member completed the required Disclosure Agreement and

Confidentiality Agreement.

Consensus Meeting:

After the Panel members had completed their individual evaluations of the proposals, the Panel

met on August 3, 2023, to develop a consensus technical score and the supporting written narrative

for each Offeror. In developing the consensus score, the Panel discussed the details of each

proposal in light of the evaluation factors and subfactors.

Contracting Officer’s Independent Evaluation:

The Department’s Contracting Officer carefully reviewed each of the proposals and independently

rated each Offeror. He further carefully reviewed the evaluation process followed by the Panel, their

notes and scoresheets, and their final consensus technical evaluation and concluded that the Panel’s

technical evaluations of the proposed Offerors were proper and reasonable.

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    Certified Business Enterprise Preference Points:

    In addition to the price and technical scoring, a certain number of points were available for each

    Offeror based on its status as a Certified Business Enterprise (“CBE”) as determined by the

    Department of Small and Local Business Development (“DSLBD”). The Contractor was so certified

    and received points accordingly.

    Determination of a Fair and a Reasonable Price:

    When the total points for all of the three components (technical, price, and CBE preference) were

    combined, the Contractor was the highest-ranked Offeror. The Contracting Officer examined the

    fee/price proposal submitted by the Contractor and determined that the overall proposed fees/price

    submitted by the Contractor is within the IGE and is fair and reasonable, and accordingly, a mutually

    satisfactory Contract was successfully concluded with the Contractor.

    Contract Award:

    By the award memorandum executed on August 28, 2023, the Department awarded Contract No.

    DCAM-23-CS-RFP-0017 to the Contractor, as such award would be most advantageous to the

    District.

(H) 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

    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.

(I) 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.

(J) The background and qualifications of the proposed 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, and is a Certified Business Enterprise (“CBE”)

    specializing in developments that enhance the community, including transformational projects that

    promote economic sustainability, to include community, education, office, retail, healthcare, and

    institutional spaces, in the District of Columbia, Maryland, and Northern Virginia. The Contractor

    provides a range of services, including preconstruction, construction management, general

    contracting, and consulting services.

    The Contractor has successfully completed the following projects for DGS and other organizations:

    1. Raymond Elementary School Washington, DC, a $62,000,000 project.

    2. MacFarland Middle School Washington, DC, a $62,000,000 project.

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    3. Jefferson Middle School Academy Washington, DC, a $75,000,000 project.

    4. C.W. Harris Elementary School Washington, DC, a $50,000,000 project.

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

    a staffing plan for the Project, which has been reviewed and approved by the Department. The

    Contractor has been determined responsible in accordance with 27 DCMR 4706.1.

(K) 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.

    Contract’s NTE Dollar Value                      $14,944,998.00

    Subcontracting Requirement %                     35%

    Subcontracting Plan Required Dollar Value        $5,230,749.30

    Subcontracting Plan Actual Dollar Value          $5,672,296.70

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

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

    as all other services necessary to substantially complete the Project no later than: (i) August 1, 2024

    (Part 1); (ii) August 1, 2025 (Part 2); and (iii) August 5, 2026 (Part 3). 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 $2,500 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.

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

    before its submission to the Council for approval:

    The Letter Contract executed by the Department on September 26, 2023, provides an initial NTE

    amount of $995,000, representing the total expenditure of funds authorized to date.

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(N) 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 Contract’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.

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

    has any pending legal claims against the District:

    The proposed Contract 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.

(P) 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.

(Q) 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 tax laws.

(R) 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 website, the Contractor is a certified Local Business Enterprise and

    Resident Owned Business. The Contractor’s CBE Number is LR17456042025, with an expiration

    date of April 18, 2025.

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

    significant:

    None.

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(T) 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.

(U) 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.

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

    online:

    The Contract award information is available on the Department’s website. A copy of the contract

    will be made available on the DGS website upon approval.

(W) 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.

(X) (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.

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                                          Exhibit A

Contracts that MCN Build, Inc. Currently Holds with The District (Not Limited to DGS only):

Contract Number                                   Project Caption            Project Value

1.   DCAM-24-CS-RFP-0004        MLK ES                                           $57,000,000

2.   DCAM-23-CS-RFP-0018        Modular Campus at Nalle                          $16,000,000

3.   DCAM-22-CS-RFP-0018        Browne EC                                        $97,000,000

4.   DCAM-22-CS-