RFQ NORTHSTAR AUDITING SERVICES ADDENDUM NO. 1 REF. LOCATION DESCRIPTION OF CHANGE. Revised Scope of Work. Work tasks have been revised.

Transcription

1 RFQ NORTHSTAR AUDITING SERVICES ADDENDUM NO. 1 DATE PUBLISHED: MAY 18, 2016 TO ALL PROSPECTIVE SUBMITTERS: THE FOLLOWING CHANGES ARE MADE: REF. LOCATION DESCRIPTION OF CHANGE Attachment A Attachment E RFQ RFQ GENERAL Revised Scope of Work. Work tasks have been revised. Revised Attachment E-Level of Effort Attached "Question and Answer Publication No. 1" in response to questions received by the Port NO OTHER CHANGES PORT OF SEATTLE By: Betty Chan-Etquibal Contract Administrator ADDENDUM NO. 1 1 of 9

2 ATTACHMENT A SCOPE OF WORK RFQ The services required under this contract include Construction cost-of-record auditing in support of any part of the Port s NSTAR construction projects. The majority of the work will involve audits on the North Satellite Renovation and Expansion GCCM contract to comply with RCW , paragraph 11. Audits are typically performed in the contractor s place of business and consist of determination of the prime contractors, subcontractors and suppliers costs of record including but not limited to direct and indirect charges, overhead, benefits, markups, subcontract and supplier payments. Consultant may be required to do the following tasks and or deliverables: Task 1 Task 2 Task 3 Task 4 Initial Audit Setup with GC/CM and MCCM/ECCM Periodic Pay Request Reviews Final Audits Additional Project Audits/Cost Claim Audits Tasks 1, 2, 3 and 4 include the following detailed work scope: Attend meeting with project member associated with the auditing activities requested. Review Port of Seattle records Review and analyze project cost records in the home office of a General contractor, sub-tier and sub sub-tier contractors, and suppliers. Prepare written reports of audit findings and recommendations, including contractor backup cost records. Review costs as defined as follows: A) Labor Supervisory (On Site) Bill Rates or Actual If Bill rate, includes what components (vehicle, OTL living, vacations, holiday et al) If Actual Rate, validate wage with payroll/hr/or W-2. Validate burden and fringe components (identify any non-reimbursable components as part of the burden per the contract) If labor is inside of General Conditions (GMP Estimate includes what positions name/title) Time tracking (allocation or actual time) If salaried, do they bill in excess of 40 hours per week/8 hours per day Vehicle assigned (rate inclusive of mileage, insurance, maintenance et al)

3 Supervisory (Off-site) Bill Rates or Actual If Bill rate, includes what components (vehicle, OTL living, vacations, holiday et al) If Actual Rate, validate wage with payroll/hr/or W-2. Validate burden and fringe components (identify any non-reimbursable components as part of the burden per the contract) If labor is inside of General Conditions (GMP Estimate includes what positions name/title) Time tracking (allocation or actual time) If salaried, do they bill in excess of 40 hours per week/8 hours per day Vehicle assigned (rate inclusive of mileage, insurance, maintenance et al) Hourly (On-site) Identify compliance with PLA and Washington State Prevailing Wage requirements Copy of labor contract/updated through life of project Fringe Benefits Payroll Taxes and Insurance (PT&I) - % applied to base rate or base rate + union fringes? a. Workers Comp/GL (eliminate if OCIP/CCIP Project) b. Safety (how % is derived as burden component) c. Consumable/Small Tools (how % is derived as burden component - what is included and dollar limit? d. Training (In Subcontractors Fee or allowable per Subcontract agreement) e. Regular Time vs. OT (Same burden applied to OT wages as RT wages) For non-union hours payroll verify wage rate and actual PT&I with Payroll Dept./HR/or W-2 a. Verify all burden components and derivation of the percentages Hourly (Off-site/Fab Shop) Identify compliance with PLA and Washington State Prevailing Wage requirements Copy of labor contract/updated through life of project Fringe Benefits Payroll Taxes and Insurance (PT&I) - % applied to base rate or base rate + union fringes? a. Workers Comp/GL (eliminate if OCIP/CCIP Project) b. Safety (how % is derived as burden component) c. Consumable/Small Tools (how % is derived as burden component - what is included and dollar limit? d. Training (In Subcontractors Fee or allowable per Subcontract agreement) e. Regular Time vs. OT (Same burden applied to OT wages as RT wages) Fab Shop PT&I - % applied to base rate or base rate + union fringes? Which job classifications? Identify all Overhead costs associated with Fab Shop rates or burden components different from on-site staff

4 Technical Burden - $/hr or % for Commissioning includes specialized tools + additional training Service Technician - $/hr or % - including specialized tools + additional training B) Markups Verify that proper mark-ups per terms of the contract are being applied at every level, GCCM, subcontractors, and suppliers Check for any additional markups that they are allowed and proper (for example: safety/insurance/bonds/consumable/small tools/general Conditions). Verify derivation of any percentages for the additional markups. Consider aggregate cap if not included in contract language. Check for improper double charging of costs or markups C) Materials Any standard materials provided for subcontractors own inventory should be identified with a parts list and costs provided upfront. Additionally, the Subcontractors should identify any procurement fees assessed to material purchases both from their own inventory or purchased from outside vendors. Applicable sales tax rates for these materials should be understood and tracked and accrued per any Owner requirements. Procurement/Fee for purchase or actual cost Tax at rate of % / accrued and reported to Owner Elimination of costs due to Construction Manager/Owner Purchasing D) Insurance and Bonds Any insurance and bond requirements should include a complete vetting of the rates intended to be billed to the project. Review would identify all insurance and bond rates and include a full analysis of the derivation of the rates. E) Owned/Rental/Leased Equipment F) Assets Determine fair hourly, weekly or monthly rates that the Port should pay for any owned or leased equipment used in the project that is not covered by the WSDOT Rental Rate Agreement. Determine fair operating costs to be paid for such equipment when in use. Checked proper rates for rental equipment including taxes. Check rates for equipment covered in the WSDOT Rental Rate Agreement as needed. Full disclosure of any assets that are purchased for the project, how they are tracked and the value of those assets at the conclusion of the project will be reviewed. Track disposal or resale value of the assets at the end of the project.

5 G) Proper Change Order/Allowance/Contingency Tracking Review of time cards, accounting records, daily reports or other information to assure that the contractor has properly tracked and accounted for costs charged. H) Misc. Costs Any travel, out-of-town living, or per diem costs would be reviewed under current Port policies regarding these items. Any other costs needing review as directed by the Port Construction Manager or Lead Resident Engineer.

6 Attachment E - Mock Level of Effort Please check all formulas. The spreadsheet is provided as an example of appropriate layout. Firm Job Title: Northstar Auditing Services Prime Example: Job Classification/Title Total Hours Subcontractor 1 Total Effort TASK 1.0 Initial Audit Setup with GC/CM and MCCM/ECCM 1 Setup with GC/CM Setup with MCCM/ECCM Subtotal Task 1.0: TASK 2.0 Periodic Pay Request Reviews 1 ECCM Review MCCM Review GCCM Review Subtotal Task 2.0: TASK 3.0 Final Audits 1 Final MCCM Audit Final ECCM Audit Subtotal Task 3.0: TASK 4.0 Additional Project Audits/Cost Claim Audits 1 Additional Project Audits/Cost Claim Audits Subtotal Task Mod 4.0: Expenses: Other Direct Cost 0 0 HOURS: In case of discrepancy between total and hours allocated to individual subtasks, the hours allocated to indvidual subtasks will be assumed correct.

7 Question and Answer Publication No. 1 RFQ # Question Port Response 1 A. Does the Port of Seattle have a clear definition of the claims process built into their NSTAR contracts (GCCM, ECCM,MCCM) Please provide detail if possible? A. Yes, see attached Article G-09 from our contract. B. Will the NS Project have a formal early dispute resolution process as part of the project structure and contract terms? C. Will the NS Project look to the auditor for the evaluation of the merit of a claim? D. Will the NS Project look to the auditor to evaluate schedule & schedule delays related to a claim? 2 What are the estimated number of specific projects anticipated to be audited under this agreement, i.e., projects that will require a separate close out process? 3 Attachment A states Review and analyze project cost records in the home office of a General contractor, sub-tier and sub sub-tier contractors, and suppliers. Are you referring to the close out review or each payment application and associated invoices to be reviewed monthly at the contractor s, subcontractors and suppliers offices or can this be reviewed at the auditor s office? B. We are using a Dispute Resolution Board on this project, See G attached. C. No D. No One Most of the records will be available electronically but sometimes an office visit is needed to confirm records. 4 When do you anticipate audit services commencing? Fall of What type of primary contracts are anticipated, GMP, T&M or lump sum? 6. If projects are anticipated to be primarily GMP for the Construction Manager, would the subcontractors be a mix of T&M (GMP) and lump sum contracts? 7. Are GMP contracts anticipated to be based on the Federal Acquisition Regulation standards? 8. If the primary contracts are anticipated to be based on FAR, will overhead audits expected to be conducted on contractors and subcontractors as a part of the audits? It is a single GCCM contract with MCCM and ECCM subcontractors. The primary purpose of the audit is to comply with Washington State RCW (11). Yes No The contract is not based on FAR but auditing of some overhead costs may be needed. ADDENDUM NO. 1 7 of 9

8 9. How many pay applications / months are you anticipating for each project 10. Is Attachment E to be included with the RFQ submission or is this to be submitted after a firm is selected? 11. The Fee for the Auditing Services is listed as 500,000 to 550,000. Is this for one year, or for the full 5 years? 12. Is the Port of Seattle holding separate GMP type contracts for the three prime contractors (1) General Contractor, (2) Electrical Contractor and (3) Mechanical Contractor? If not, then please describe the contracting strategy for the project. 13. Does the Port of Seattle anticipate the use of the same major prime contractors for GCCM, MCCM and ECCM services for Phase I and Phase II? If no, please explain the contracting strategy for Phase II. 14. If the Port of Seattle anticipates the use of the same major prime contractors for GCCM, MCCM and ECCM services for Phase I and Phase II, will the Port of Seattle award new work for Phase II based on Task Order agreements at the completion of Phase II design activity? Or will new contracts be negotiated? 15. Please clarify Task 2.0 (Monthly Pay Request) and 3.0 (Additional Audits), Attachment E. Excluded are monthly pay request and final audits for the GCCM contract. Please confirm if GCCM contract is excluded from monthly reviews. 16. Please confirm if the Tasks (1.0, 2.0, 3.0..etc) identified in Attachment E should remain as presented in the RFQ or reflect the Task Numbers as presented in Attachment A Scope of Work 17. Please provide duration schedule (i.e., number of months) to anticipate for each of the three major contracts: a. GCCM (general contractor, please correct if different) b. ECCM (electrical contractor, please correct if different) c. MCCM (mechanical, please correct if different) The project will somewhere between 54 to 64 months long with one pay application each month. Yes, Attachment E should be submitted and included in the appendix section of your proposal. For the full 5 years. The Port holds one GCCM contract with the Prime Contractor who has subcontracts with the MCCM and ECCM. There is just one contract for the entire project that includes Phase 1 and 2. No, it is just one contract that is multi-phased. The plan is to have an initial Audit setup review (Task 1) with the GCCM, ECCM and MCCM shortly after this contract is executed in Fall 2016 to make sure costs are tacked to meet everyone s expectations.. We would follow up twice in 2017 (Spring and Fall) with (Task 2) audits of Pay Requests and records to assure that the GCCM, ECCM and MCCM are following the procedures setup in the initial Audit plan. The cost tracking systems should be in place and established after that so we plan to cut that back to just one time a year (Task 2) audits of the GCCM, ECCM and MCCM in the Spring of 2018, 2019, 2020, and The final Task 3 audit of just the ECCM and MCCM would happen after all project costs are finalized at the end of See revised Task description and revised Attachment A Scope of Work. The final schedule has not been set as the project is still being designed. It is anticipated that the project will last 54 to 64 months. It is planned that audits of 6 to 12 months of pay applications would be reviewed at one time per the schedule given in the ADDENDUM NO. 1 8 of 9

9 18. Is it mandatory that all monthly pay request review be performed at the Contractors home or field office or can the review be periodically reviewed (assuming appropriate documentation is available) at the proposer s office? 19. Please confirm if the project is subject to a Project Labor Agreement? 20. Are the contractors required to enroll in an OCIP program under the Port of Seattle? 21. How many prime contractors, subcontractors and suppliers are to be audited and how often. answer to questions #4 above. Pay estimates will be available electronically. Yes the project has a PLA. No OCIP program is in existence. See answers to other questions. 22. Please provide the name(s) of the primary contractor(s). Hensel Phelps is the GCCM contractor 23. Can you please elaborate on the minority of work that does not involve the North Satellite Renovation and Expansion GCCM contracts? 24. Can you please provide more information on the project; e.g. cost and schedule? 25. The RFQ specifies that the 10 page limit is for 10 pages of content. Please confirm that aesthetic pages with images to serve as dividers do not count towards the 10 page limit. 26. Please confirm that Attachment E only requires hours to complete the project and does not require a dollar amount (hourly rates). Per the RFQ, hourly rates are requested after selection. All work is for the North Satellite Renovation and Expansion GCCM contract. The current total project cost range is $ million. Design is about 75 percent complete so we will not know the final cost until early See answers to other questions on the length of the project. Pages to serve as dividers will not be counted toward the 10 pages of content limitation however divider pages are not encouraged. True. Attachment E shall include anticipated hours to complete the services listed in the scope of work. ADDENDUM NO. 1 9 of 9