Bill Summary – FastDemocracy

MURIEL BOWSER

    MAYOR

June 28, 2024

Honorable Phil Mendelson

Chairman

Councilofthe 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 202ofthe Procurement Practices Reform Act of 2010 (D.C. Official Code §

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

Contract No. DCAM-23-CS-RFP-0018 with MCN Build, Inc., in the not-to-exceed amount of

$9,017,668.00 (including an existing letter contract amount of $995,000). The contract has a

substantial completion dateofJuly 15, 2025.

The proposed contract includes an early start agreement (“ESA”) of funds for the initial phase of

the modernization of the Modular Campus At Nalle For Drew Elementary project. As part of the

project's initial phase, the early start agreement includes funds for concept documents for the

modular layoutofthe Nalle Swing site and the concept narrative of the Nalle Elementary School

Modular site. The ESA also includes design fees, design-build fees, bonds/insurance, general

conditions, and allowances while the District and MCN Build finalize the full scope and

guaranteed maximum price for the project 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 considerationof this contract.

Sincerely.

Muriel   Bows:

                     GOVERNMENT OF THE DISTRICT OF COLUMBIA

                        DEPARTMENT OF GENERAL SERVICES

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)

      Design-Build Services for Modular Campus At Nalle For Drew Elementary Modernization

(A)      Contract Number:                              DCAM-23-CS-RFP-0018

         Proposed Contractor:                          MCN Build, Inc.

         Proposed Contract Amount:                     Not-to-Exceed (“NTE”) $9,017,668.00, (includes

                                                       $995,000.00 Letter Contract amount)

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

         Term of Contract:                             January 9, 2024 (the date of execution of the Letter

                                                       Contract by the Department) through July 15, 2025

                                                       (the “Substantial Completion Date”) with an

                                                       Administrative Term of March 16, 2026.

         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 January 9, 2024.

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

         The Letter Contract has been extended one time.

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

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      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 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 the Contractor to provide Design-Build Services for the

      Modular Campus At Nalle For Drew Elementary School (the “Modular Campus”), located at 219

      50th Street, SE, Washington, DC 20019 (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 before July 15, 2025.

      The proposed Contract’s NTE amount of $9,017,668.00 is for an early start agreement

      submission (“ESA”) and is based on several preliminary anticipated costs for the Project as

      determined by the Contractor. As part of the project's initial phase, the ESA #1includes funds for

      concept documents for the modular layout of the Nalle Swing site and the concept narrative for

      the Nalle Elementary School Modular site. The ESA 1 also includes preconstruction fees, design

      fees, bonds/insurance, and allowances 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 July 26, 2023, the Department issued a Request for Proposals ("RFP") to engage a design-

      builder for the modernization of the Modular Campus, located at 219 50th Street, SE, Washington

      DC 20019.

      The RFP was posted on the Department’s website on July 26, 2023, and the Pre-Proposal

      Conference and a site visit were held on July 31, 2023. The initial Proposal Due Date was August

      30, 2023, but this was extended to September 13, 2023, and changed to September 22, 2023.

      There were four (4) addenda issued to this RFP.

      Addendum No. 1- Issued on July 31, 2023:

      •   Provided the sign-in sheet and business cards from the pre-proposal conference and the site visit

          held on July 31, 2023, located at 810 26th Street, NE, Washington, DC 20002, and 219 50th

          Street, SE, Washington DC 20019.

      Addendum No. 2- Issued on August 18, 2023:

      •   Provided questions and answers about the RFP.

      •   Incorporated Attachment M (Form of Contract) to the RFP.

      •   Incorporated Attachment N (Notice to Proceed and Letter Contract) to the RFP.

      •   Revised Attachment C (Form of Contract) and incorporated it into the RP.

      •   Added a new document (Modular Campus Space Planning) to Part 2 (Project Requirements) of

          the RFP.

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Addendum No. 3- Issued on August 24, 2023:

•   Extended the proposal due date to September 13, 2023 at 2:00 P.M.

Addendum No. 4- Issued on September 11, 2023:

•   Revised the title of the RFP.

•   Revised Section 5.1 (Proposal Identification) and incorporated it into the RFP.

•   Revised Section 1.0 (Procurement Overview) of the RFP.

•   Revised Section 1.1 (Project Overview and Background) of the RFP.

•   Revised Section 1.3 (Project Budget and Funding Limitations) of the RFP.

•   Revised Section 1.6 (Project Delivery Method and Schedule) of the RFP.

•   Revised Attachment C (Form of Offer Letter) and incorporated it into the RFP.

•   Revised Attachment M (Form of Contract) and incorporated it into the RFP.

•   Revised Attachment N (Notice to Proceed and Letter Contract) and incorporated it into the

    RFP.

•   Extended the proposal due date to September 22, 2023, at 2:00 P.M.

Proposal Submissions:

On the proposal due date, September 22, 2023, six (6) firms (collectively, the “Offerors” and

each individually, an “Offeror”) submitted responsive proposals.

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 October 30, 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 November 14, 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 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 Independent Government Estimate 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 December 8, 2023, the Department awarded Contract

      No. DCAM-23-CS-RFP-0018 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 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 CBE and a general contractor specialized

      in construction management, general contracting, and design-build services. The Contractor has

      successfully completed multiple school modernization projects for DGS including:

      1. Bard High School Early College in Washington, DC;

      2. MacFarland Middle School in Washington, DC;

      3. C.W. Harris Elementary School in Washington, DC;

      4. Jefferson Middle School in Washington, DC;

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      5. Murch Elementary School in Washington, DC; and

      6. Banneker Academic High School in Washington, DC.

      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. The preliminary subcontracting plan, which will be

      finalized at the time of GMP, is as follows:

      Contract’s NTE Dollar Value                           $9,017,668.00

      Subcontracting Requirement %                          35%

      Subcontracting Plan Required Dollar Value             $3,156,183.80

      Subcontracting Plan Actual Dollar Value               $804,000.00

(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 other services necessary to substantially complete the Project no later than July 15, 2025.

      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.

(M)   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:

      The Letter Contract executed by the Department on January 9, 2024, provides for 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 statement 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 complies 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 taxes.

(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 Enterprise. 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:

      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 have been 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 h