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DESIGN-BID-BUILD PROCESS

This process applies to actions that are expected to exceed $150K. Projects under the $150K threshold are often sole sourced or competed among companies that have a Master Task Agreement.

DESIGN ACTIVITY

The Project Manager first determines whether adequate design documents can be provided by in-house engineers or if it is necessary to subcontract for design services.

If design costs are estimated to be less than $250,000 the Project Manager should first consider obtaining design services from an Architect/Engineer (A/E) firm that has already entered into a Master Task Agreement (MTA) with the Laboratory. A list of A/E firms with MTA’s and a description of the scope of services that can be provided under the MTA can be found on the Design and Construction Management (DCM) file server. The Project Manager may either select a single A/E firm on the basis of the firm’s qualifications for the project or choose to request fee proposals from more than one firm. Procurement will assist in requesting fee proposals from selected firms and in negotiating a reasonable firm fixed price for the design services to be provided. To obtain a fee proposal a Project Design Requirements document must be prepared and forwarded to the designated A/E firm(s). If fee proposals are requested from more than one firm the Project Manager will work with Procurement to select the firm offering the best overall value for the project in terms of the proposed fee and the firm’s qualifications. If design costs are estimated to exceed $250,000 for the project, the Project Manager should consult with Procurement to determine whether the opportunity should be publicly announced and an A/E firm selected specifically for the challenges of the project.

When the final selection has been made and pricing negotiated, the Project Manager will forward an A/E Task Request to Procurement and enter a requisition for the design services.

PRE-BID PROJECT MANAGEMENT ACTIVITIES

 Upon completion of design documents the Project Manager reviews the drawings and specifications in accordance with Sections 4.3, Facilities Plan Reviews. Particular attention should be paid to Division 01 specifications to make sure that provisions are applicable to the specific project. Division 01 Specification Section 010000 must identify the responsible Project Manager and Procurement Subcontract Administrator. Specifications are to be stamped by the registered professional responsible for the design.

Additional pre-bid activities may include but are not limited to the following:

• Ensure that Project Plan Review is completed prior to release for bid.
• A wet-stamped and signed reproducible copy of the contract drawings shall be obtained from the registered professional responsible for the design.
• Obtain and review the construction cost estimate. Determine the duration of construction.

• Discuss the subcontracting method for the project, such as small business set-asides, prequalification of subcontractors, public announcement requirements, consideration of factors other than price, etc., with the Project Director and Procurement.
• Designate a subcontractor’s staging/laydown area and prepare a site location map showing this area. The map can be included in subcontract documents or distributed at the bidder’s site visit.

• Prepare a bid period schedule that includes the date on which it is planned that documents will be available to bidders, as well as the site visit date, bid due date, and subcontract award date.
• Provide information to the subcontract administrator for preparation of a public advertisement if required. Projects estimated to exceed $250,000 in value shall be publicly advertised unless the Project Manager and Procurement have jointly determined that the procurement will be set aside for small business and a sufficient number of qualified small businesses have been identified that are likely to compete for the project at reasonable prices.
  • Post project information and bidding documents to the Future Projects website.
  • Prepare an estimate of liquidated damages.
  • Establish a Performance & Safety Incentive Award for the project in accordance with Program requirements that can be found in Appendix N. Project Manager is responsible for confirming the Fee Determination Official, identifying the Performance Monitors and specifying the incentive amount. On large project exceeding $5M a Performance Evaluation Board will also need to be identified. Performance Incentives will be added to the subcontract as a contract modification after proposals are accepted. Projects under

$1M shall include a Safety Allowance for worker recognition, as described in Chapter 6 Section 6.2.2

• Submit a purchase requisition to Procurement. Send the specifications, drawings, suggested sources (if any) independent estimate, bidding schedule, and liquidated damages estimate to Procurement.

The subcontract administrator will review the information provided by the Project Manager and will prepare the solicitation documents for issuance to prospective bidders. Project Coordinators may be requested to assist with assembly, reproduction and distribution of Request for Proposal (RFP)/Invitation for Bid (IFB) documents. 

PRE-BID PROJECT MANAGEMENT ACTIVITIES

1. Modify Division 01 Specification Section 013500 Special Procedures to be project-specific. Review other Division 01 specifications to see if they apply to the project. Add the General Provisions; changes to the General Provisions are generally limited to adding the names of the Project Manager and Procurement Subcontract Administrator.  Check uniformity of the technical specifications. Specifications are to be stamped by the registered professional responsible for the design.
2. The Project Coordinator shall assist Procurement in assembling the front-end bid documents, arrange for copying the bid, and coordinate distribution of the bid documents to the bidders.
3. Ensure that Project Plan Review is completed prior to release for bid.
4. A wet-stamped and signed reproducible copy of the contract drawings shall be obtained from the registered professional responsible for the design.
5. Obtain and review the construction cost estimate. Determine the duration of construction.
6. Discuss the subcontracting method for the project, such as small business set-asides, prequalification of subcontractors, Construction Manager/General Contractor (CM/GC), etc., with the Project Director and Procurement. 
7. Designate a subcontractor’s staging/laydown area and prepare a site location map showing this area. The map can be included in subcontract documents or distributed at the bidder’s site visit.
8. Prepare a bid period schedule that includes the date on which it is planned that documents will be available to bidders, as well as the site visit date, bid due date, and subcontract award date.
9. For contracts that will be publicly advertised, prepare an advertisement narrative following the sample format (refer to Sample Advertisement for Prequalification, this section).
10. Post project information and bidding documents to the Future Projects website (http://facilitiesprojects.lbl.gov/).
11. Prepare an estimate of liquidated damages.
12. Submit a purchase requisition to Procurement. Send the specifications, drawings, advertisement, bidding schedule, and liquidated damages estimate to Procurement.
13. Request subcontractor prequalification and small-business set-aside, when appropriate.

SITE VISIT

The site visit is an opportunity for interested bidders to see the proposed project area and the existing conditions, and to ask questions about the project. This interaction will help to ensure that LBNL receives the best bid and to reduce conflicts during construction. The site visit is conducted by the LBNL Project Manager at the appointed time and place announced in the advertisement for bids.

The Project Manager’s responsibilities include:

• Invite the A/E representative and Procurement Subcontract Administrator. The client, LBNL design team, Environment/Health/Safety (EHS) team lead, and the EHS Construction Safety representative may be invited when appropriate. 

• Prepare site visit agenda (refer to Bid Walk Agenda, this section).
• Tour the project area, describe the project scope, identify any bid alternates, phasing requirements, and logistical constraints, and answer questions from the bidders.
• Prepare a memo to file on the site visit. File memo in the project file. The Procurement Subcontract Administrator’s responsibilities include:
  • Prepare and publish public advertisement of the opportunity if required.
  • Notify prospective bidders of the site visit date and time, including whether attendance is mandatory or non-mandatory.
  • Arrange attendee access to visiting area(s). The Project Coordinator’s responsibilities include:
    • Request site access and parking through LBNL Site Access. If more than five parking spaces are needed, barricades must be requested.
      • Reserve shuttle bus service if necessary. 

The Subcontract Administrator will normally answer questions about the subcontract, obtain a complete list of those in attendance, and copy the Project Manager.

BID PERIOD

All contact with LBNL and the responsible architect/engineer must be managed by the subcontract administrator after an opportunity is announced and prior to award of a subcontract. The Project Manager shall designate a technical contact for response to bid questions.

The design professional shall prepare any addendum items, including responses to bid questions, and forward them to the Project Manager. The Project Manager shall review the addendum and forward it to Procurement for issuance to the bidders. Any technical addendum information shall be distributed in a timely manner.

Procurement shall conduct the bid opening if bids are publicly opened; the Project Manager shall attend.

BID PERIOD

1. The Project Manager shall designate a technical contact for response to bid questions.
2. The design professional shall prepare any addendum items, including responses to bid questions, and forward them to the Project Manager. The Project Manager shall review the addendum and forward it to Procurement for issuance to the bidders. Any technical addendum information shall be distributed in a timely manner.
3. Procurement shall conduct the bid opening; the Project Manager shall attend. SUBCONTRACT AWARD

Price reasonableness must be documented for all contracts at initial contract award and for any significant change orders. Price reasonableness can be determined by a price analysis which either:

compares the proposed prices received in response to a solicitation in which there was adequate price competition to establish price reasonableness, or compares the proposed prices received with an independently prepared LBNL cost estimate developed by knowledgeable personnel. Price reasonableness must be determined prior to award of a subcontract and will be documented in the subcontract file. The Project Manager shall assist the subcontract administrator as necessary in making a determination that the price is reasonable.

The Project Manager shall prepare an Award of Subcontract memorandum, and forward it to the DCM Department Head for approval. The signed memorandum shall be sent to Procurement as authorization to issue a subcontract.

Procurement shall transmit a signed subcontract to the subcontractor and request bonds, insurance, and a safety plan. Subcontractors are required to return a countersigned subcontract with bonds, insurance certificates and a safety plan within 10 days after receipt of the Subcontract from LBNL.

The Project Manager shall review the subcontractor’s safety plan, and then forward it to the EHS Construction Safety Engineer for review and comment. Upon resolution of comments to the Project Manager’s satisfaction, the Project Manager shall approve the subcontractor’s safety plan.

After bonds and insurance are received and the safety plan is approved, Procurement will issue a notice to proceed authorizing the Subcontractor to commence work on site and establishing a completion date.

The Project Manager shall schedule a construction pre-start meeting with the construction subcontractor, A/E, inspector, Construction Safety Inspector, and Procurement. EHS representatives and design team members should be included when appropriate. The date for issuance of a Notice to Proceed shall be established at the pre-start meeting.

SUBCONTRACT AWARD

• Price reasonableness must be documented for all contracts at initial contract award and for any significant change orders. 
• Price reasonableness can be determined by a price analysis which either:

• • compares the proposed prices received in response to a solicitation in which there was adequate price competition to establish price reasonableness, or
  • compares the proposed prices received with an independently prepared LBNL cost estimate developed by knowledgeable personnel.

The Project Manager shall document the determination of price reasonableness.

This price reasonableness process does not apply to leasehold improvement projects. The Laboratory’s share of tenant improvement (TI) costs that are performed through the landlord on leased property is determined as part of the lease negotiations. These negotiations determine rental rates, TI allowances, landlord furnished work, and tenant costs based on competitive market conditions. The Project Manager will work with Procurement to ensure that the scope of the tenant improvement work is adequately documented in the lease, and review the TI cost estimate to confirm it accurately reflects the project scope.

1. The Project Manager shall prepare an Award of Subcontract memorandum, and forward it to the DCM Department Head for approval. The signed memorandum shall be sent to Procurement as authorization to issue a subcontract.
2. Procurement shall request from the subcontractor submittal of bonds, insurance, and a safety plan.
3. The Project Manager shall review the subcontractor’s safety plan, and then forward it to the EHS Construction Safety Engineer for review and comment. Upon resolution of comments to the Project Manager’s satisfaction, the Project Manager shall approve the subcontractor’s safety plan.
4. After bonds and insurance are received and the safety plan is approved, Procurement shall issue a subcontract to the subcontractor for signature.  The subcontractor has ten days to sign the subcontract.
5. The Project Manager shall schedule a construction pre-start meeting with the construction subcontractor, A/E, inspector, Construction Safety Inspector, Commissioning Authority and/or Team, and Procurement Subcontract Administrator. EHS representatives and design team members should be included when appropriate. The date for issuance of a Notice to Proceed shall be established at the pre-start meeting.

BID AND AWARD CHECKLIST

Project ID:

Project Title:

Project Manager: 

IN-HOUSE CONSTRUCTION SUPPORT

For in-house construction, the transition between design and construction includes the preparation of a construction cost estimate that is coordinated by the DCM Project Manager, sign-off, and issuance of a work order. Construction work is initiated when Maximo Work Orders are scheduled by Work Planning and Controls for the MRO leads who will then assign the appropriate crafts.

• The DCM Project Manager or his/her designee shall submit the project drawings, scope of work, schedule, and estimate to the Small Projects Scheduled Work Center Supervisor.
• The Scheduled Work Center Supervisor shall review the completed estimate, accept or revise it, and return it to the DCM Project Manager.  The Project Manager shall review the estimate and solicit comments from the Construction Manager if appropriate.
• The DCM Project Manager shall review the construction drawings and cost estimate with the client. If agreeable, the client signs the Project Plan Review sheet.
• The Project Manager shall ensure that the Project Plan Review (Line Item and GPP/IGPP Projects) form is signed off when appropriate.
• The Issue For Construction drawings, stamped by the registered professional responsible for the design, shall be forwarded to the Scheduled Work Center, along with the signed cost estimate.
• The DCM Project Manager defines the Work Breakdown Structure, showing how the work should be charged to the project by the Scheduled Work Center craft employees.
• The Scheduled Work Center Supervisor shall issue the Work Orders to the crafts, with a copy to the DCM Project Manager and DCM Construction Manager.
• The DCM Construction Manager shall hold a pre-start meeting with the Scheduled Work Center Supervisor, EHS representative, and leads from the crafts, to discuss safety hazards, schedule, logistics, and work coordination.

WORK ORDER CHECKLIST

Project ID:

Project Title:

Project Manager:

SAMPLE ADVERTISEMENT FOR PREQUALIFICATION