Bill Summary – FastDemocracy

MURIEL BOWSER

     MAYOR

November 4, 2024

The Honorable Phil Mendelson

Chairman, Council of the District of Columbia

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. 1 to Contract No. DCAM-23-CS-RFP-0006 with the Keystone Plus

Construction Corporation will increase the Contract’s NTE amount by $4,759,559.00, from

$2,828,036.00 to $7,587,595.00. The not-to-exceed amount is an early release of funds for the

initial phase of the modernization of Leckie Education Campus Addition.

As part of the additional initial phase of the project, The Keystone Plus Construction Corporation

will provide foundation trade grade activities, including partial funding for long lead items, and

the balance amounts for phase one playground construction, general conditions, insurance, and

performance and payment bonds while the Department of General Services (“DGS”) and The

Keystone Plus Construction Corporation finalize the full scope and guaranteed maximum price for

the project.

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

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, tipping, retroactive without changes, and multiyear)

(A)     Contract Number:                           DCAM-23-CS-RFP-0006 (the “Contract”)

                                                   Modification No. 1

      Proposed Contractor:                         The Keystone Plus Construction Corporation

      Proposed Contractor’s Principals:            Joseph Khoury

      Contract Amount (ESA 2):                     Not-to-Exceed (“NTE”) $7,587,595.00

                                                   (includes $995,000.00 Letter Contract amount and

                                                   $1,833,036.00 Early Start Agreement (“ESA”) #1

                                                   amount)

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

      Term of Contract:                            September 25, 2023 (date of execution of the Letter

                                                   Contract by the Department of General Services (the

                                                   “Department” or “DGS”)) through November 3,

                                                   2025 (“Part 1 Substantial Completion Date”) and

                                                   January 23, 2026 (“Part 2 Substantial Completion

                                                   Date”)(collectively, the “Substantial Completion

                                                   Dates”); with an Administrative Term of November

                                                   3, 2026.

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

                                                   Price (“GMP”)

      Source Selection Method:                     Competitive Request for Proposals

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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:

    None.

(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 Keystone Plus Construction

    Corporation (the “Contractor”), to provide design-build services for the modernization of the Leckie

    Education Campus (the “Project”), located at 4201 Martin Luther King Ave., SW. The Project is

    divided into two phases: (i) the Design and Preconstruction Phase; and (ii) the Construction Phase.

    The substantial completion of the Project shall occur on or by November 3, 2025, for Part 1 and

    January 23, 2026, for Part 2.

    The Project includes design-build services required for an approximately 14,500-square-foot addition

    to the existing Leckie Education Campus. The Department anticipates adding a new 2-story addition

    to the existing 4-story brick building built in 1970 to replace the temporary trailer complex. The

    Project shall be designed in such a way as to incorporate, at a minimum, Leadership in Energy and

    Environmental Design (LEED) for Schools – Gold principles and achieve net zero strategies.

    The underlying Contract was deemed approved by the Council on June 28, 2024, as CA25-0857 with

    a Not-to-Exceed (“NTE”) amount of $2,828,036.00.

    The Department now seeks Council approval to execute proposed Modification No. 1. If approved,

    Modification No.1 will increase the Contract’s NTE amount by $4,759,559.00, from $2,828,036.00

    to $7,587,595.00. The increase in the contract value realized pursuant to Modification No. 1 will fund

    a second early start agreement (“ESA”) #2 and authorize the Contractor to provide a foundation to

    trade grade activities, including structural concrete, helical piles, site work and demolition, and

    underground site utilities. The ESA #2 funding also includes general conditions, insurance,

    performance and payment bonds, partial funding for long lead items, and the balance amounts for

    phase one playground construction until the guaranteed maximum price (“GMP”) agreement is

    finalized at a later date. As the proposed modification would increase the Contract value by 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 CA25-0857 on June 28, 2024.

(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 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:

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    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 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. Randle Highlands Early Learning Center Washington, DC, a $14,200,000 project.

    2. Peabody Early Childhood Center Washington, DC, a $7,640,749 project.

    3. Eastern Market Metro Park Washington, DC, a $13,823,615 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.

(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:

    LSZX51886022027). 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:                    $7,587,595.00

    Subcontracting Requirement %:                   35%

    Subcontracting Plan Required Dollar Value:      $2,655,658.25

    Subcontracting Plan Actual Dollar Value:        $4,798,383.50

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

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

    services necessary to substantially complete the Project no later than November 3, 2025, for Part 1

    and January 23, 2026, for Part 2, 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 by the substantial completion date. The Contract also provides a replacement fee of

    $25,000 for the replacement of key personnel without the Department’s prior approval.

(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:

    The Contract deemed approved by the council on June 28, 2024, as CA25-0857 and executed by the

    Department on July 8, 2024, provides for an initial NTE amount of $2,828,036.00. This is inclusive

    of the Letter Contract, executed on September 25, 2023, in the amount of $995,000.00.

(K) A certification that the proposed contract modification 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 Modification No.

    1’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.

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

    proposed contractor has any pending legal claims against the District:

    Proposed Modification No. 1 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 is included in this Council Package.

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(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) A certification that the proposed contractor has been determined not to violate 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.

(P) 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 DSLBD’s website, the Contractor is a certified Local and Resident Owned Business

    Enterprise. The Contractor’s CBE Number is LSZX51886022027, with an expiration date of

    February 26, 2027.

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

    significant:

    None.

(R) 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.

(S) 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.

(T) 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. Copies of the proposed contract

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

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(U) 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.

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                                             Exhibit A:

Contracts that Keystone Plus Construction Currently Holds with The District Agency:

            Contract Number                             Project Caption               Project Value

    1.   DCAM-22-CS-RFQ-0001H      Davis ES Window Replacement                         $2,831,493.08

    2.    DCAM-20-CS-RFQ-0001AA Residence Restrooms Renovations CTF                    $2,662,317.58

    3.   DCAM-22-CS-RFQ-0001H      Oakhill Campus Infrastructure Upgrade               $4,026,324.78

    4.   DCAM-22-CS-RFQ-0001H      Design Build Garnet Patterson School Elevator        $691,498.00

    5.   DCAM-22-CS-RFQ-0001H                                                         $2,952,2221.28

                                   DOC Central Treatment Facility

                                   Design Build Leckie Education Campus Addition

    6.   DCAM-23-CS-RFP-0006                                                            $995,000.00

                                   Design Build Sharpe Health Classroom

    7.   DCAM-22-CS-RFQ-0001H                                                          $6,801,793.10

                                   Expansion

    8.   DCAM-23-CS-IFB-0007       Daly Building Swing 501 New York Ave.              $10,267,499.77

                                   Design Build Services for Ludlow Taylor

    9.   DCAM-23-CS-RFP-0025                                                            $995,000.00

                                   Elementary School Addition

                                   Thomson Elementary School Exterior

     10. DCAM-22-CS-RFQ-0001H                                                           $359,599.00

                                   Improvements & Playground Replacement

                                   Military Road School Historic Wood Intrusion

     11. DCAM-22-CS-RFQ-0001H                                                           $358,150.00

                                   Mitigation

                                   Design Build Services for Adames EC (Oyster-

     12. DCAM-22-CS-RFP-0015       Adams Bilingual) School Modernization –            $24,005,492.00

                                   Consigli-Keystone JV

    13. 01-22043-00                School Without Walls at Francis EC Windows          $1,904,559.00

    14. 01-22035-17                Garfield ES Modernization Windows                   $1,189,741.00

    15. CW108610                   DHCD Roofing Task Order #2 Batch 2420                 $74,692.80

 Projects Keystone Plus Construction is Currently Seeking with The District Agency:

            Contract Number                             Project Caption               Project Value

    1.   DCAM-20-CS-RFQ-0001       DB Services DOC CTF Door Control Upgrades           $1,800,994.68

                                   Design Build Service for DC Stabilization and

    2.   DCAM-24-CS-RFP-0009       Sobering Center Renovation- Park Road                1,708,700.00

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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:   October 24, 2024                                             Notice Number: L0012811824

THE KEYSTONE PLUS CONSTRUCTION CORP                                            F