Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Seaport Engineering and Construction
Information
Requested Action
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A. MOTION TO APPROVE Amendment No. 1 to Agreement between Broward County and Moss & Associates, LLC for Managing General Contractor services for Port Everglades Bulkhead Replacement Project, Group 1, Request for Proposal (“RFP”) PNC2125885P1, increasing the contract amount by $61,254,663 from the Estimated Guaranteed Maximum Price (“EGMP”) of $90,945,337 to the Reconciled Guaranteed Maximum Price (“RGMP”) of $152,200,000 for the replacement of bulkheads at Port Everglades Berths 1, 2, 3, 1A, 1B, 1C, 1D, and the Entrance Channel North Bulkhead; and authorize the Mayor and Clerk to execute same.
ACTION: (T-10:46 AM) Approved.
VOTE: 9-0.
B. MOTION TO ADOPT budget Resolution within the Port Everglades Capital Fund in the amount of $65,139,100 for the First Amendment to the Agreement between Broward County and Moss & Associates, LLC. for the Port Everglades Bulkhead Replacement Project.
ACTION: (T-10:46 AM) Approved Resolution No. 2024-496.
VOTE: 9-0.
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Why Action is Necessary
In accordance with Broward County Administrative Code Section 21.47(a), amendment to agreements exceeding $500,000 and budget resolutions must be approved by the Broward County Board of County Commissioners.
What Action Accomplishes
The amendment provides additional funding for the Managing General Contractor for construction and related services to complete the Bulkhead Replacement Project (Group 1) at Berths 1, 2, 3, 1A, 1B, 1C, 1D, and the Entrance Channel North Bulkhead, and provides additional funding required to complete the project.
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Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners’ (“Board”) Resilient Community Goal of “Ensuring accessible, seamlessly integrated investment in renewable energy, sustainable practices, manufacturing, resilient infrastructure, and environmental protection.”
Port Everglades was awarded grants containing Federal and State funds for this project. As a result, the Office of Economic and Small Business Development (“OESBD”) established a “No Goal” requirement to comply with the requirements of the grants (see Exhibit 2).
On November 14, 2023 (Item No. 50), the Board approved the substantial form of the Managing General Contractor (“MGC”) Agreement between Broward County and Moss & Associates, LLC (“Moss”) for a total Estimated Guaranteed Price (“EGMP”) of $90,945,337 and authorized the County Administrator to approve and execute the final Agreement. The final Agreement was executed by the County Administrator on November 28, 2023, and engaged Moss to serve as MGC to provide preconstruction and construction services for the Port Bulkhead Replacement Project, Group 1.
Since Moss received the Notice to Proceed for Preconstruction Services on January 8, 2024, several project-related activities have been accomplished, including:
• Providing Project constructability review comments
• Prequalifying potential subcontractors for the project
• Developing Bid Packages and soliciting bids from prequalified subcontractors
• Subsurface investigation to identify potential conflicts with existing utilities & infrastructure
• Obtaining local building permits
• Developing a final project schedule
• Developing a Reconciled Guaranteed Maximum Price (“RGMP”) proposal for the project based on subcontractor bids received
• Beginning construction activities for the project
Four negotiations meetings were held on July 24, 2024, August 13, 2024, August 20, 2024, and September 30, 2024, to negotiate this Amendment No. 1 to the Agreement. These meetings were attended by Port Everglades staff and representatives from the Office of the County Attorney, port consultants Atkins Réalis and T.Y. Lin International, and Moss. The Amendment establishes the RGMP for the construction of the Bulkheads at Berths 1, 1A, 1B, 1C, 1D, 2, and 3 as well as the Entrance Channel North Bulkhead and finalizes the project schedule, with substantial completion established as September 24, 2026. The amendment increases the RGMP by $61,254,663 from the EGMP, for a final RGMP amount of $152,200,000.
Factors contributing to the increase between the EGMP and RGMP include:
• The initial direct construction budget was based on the original Consultant’s Estimate, which was grounded on assumptions more appropriate to a traditional design, bid, build procurement rather than through a MGC. The MGC contract shifts significant risk to the contractor, and the Consultant’s Estimate did not include additional funds that an MGC would be expected to request to cover the additional risks that they are taking on. Accordingly, the original Consultant’s Estimate did not factor in additional General Conditions, General Requirements, and owners’ allowance costs that are included in a MGC contract.
• The original Consultant’s Estimate, prepared in 2022, incorporated a 3% annual inflation rate through 2026. By contrast, the MGC’s RGMP accounts for a greater inflation rate which reflects more recent inflation data and also includes accounting for possible supply chain disruptions and labor market fluctuations that have driven construction costs higher than originally projected.
• Port staff added enabling scope after the EGMP was approved for the demolition of Building 6 in the Northport area of the port to allow the area around Berth 6 to be used as a staging and laydown area. The cost of the demolition and preparation of this site were not included in the Consultant’s Estimate.
• Port staff added enabling scope after the EGMP was approved to install two new 200-ton high wind bollards to accommodate larger class ships at Cruise Terminal 2 and Berths 2 and 3 associated with the arrival of the new Princess Cruises Sphere-class ships. The cost of constructing these bollards, as well as their structural foundations, was not included in the Consultant’s Estimate as this scope was an owner’s requested change that occurred after the EGMP was established.
• To efficiently construct the new bulkhead at Berths 2 and 3, Port staff and Princess Cruises agreed to move cruise operations from Cruise Terminal 2 to Cruise Terminal 21 for a seven-month period, shutting down activity during this time at Berths 2 and 3. To safely accommodate this temporary shift of Princess ships, Port staff added installation of new floating fenders at Berth 21 to the MGC scope of work. The cost of preparing the bulkhead cap at Berth 21 and installing 20 new floating fenders was not included in the Consultant’s Estimate as this was an owner requested change that occurred after the EGMP was established.
• The Consultant’s Estimate assumed that bulkhead construction work would be performed from the land side of the berths within the port. However, due to scheduling conflicts with ongoing adjacent Convention Center and Hotel construction, along with cruise ship scheduling, a decision was made to conduct all bulkhead construction activities from the water side using marine equipment. This shift required different methods, equipment, and logistical planning, which contributed heavily to increased costs that were not accounted for in the original budget and EGMP.
• The Consultant’s Estimate assumed that landside access would be available to construct the Entrance Channel North Bulkhead. Subsequently, it was determined that land side access through the residential area to the north for heavy equipment, sheet piling, and materials would not be practical, so the decision was made to conduct all construction activities from the water side. This shift required different methods, equipment, and logistical planning, which contributed heavily to increased costs that were not accounted for in the original budget and EGMP.
In addition to the RGMP, the amendment also addresses changes to the Project Schedule, adds an exhibit listing Revised Pricing Documents, adds an exhibit clarifying allowable uses of the Owner’s Allowance, and adds provisions required by changes in state law.
Amendment No. 1 to Agreement has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
David Anderton, Assistant Director of Port Everglades, (954) 468-0144
John Foglesong, P.E., Enterprise Director, Capital Projects, Port Everglades Department, Seaport Engineering & Construction Division, (954) 468-0142
Fiscal Impact
Fiscal Impact/Cost Summary
The existing total approved budget for both the Berths 1, 2, 3 Bulkhead Replacement and Entrance Channel North Bulkhead projects is $106,513,800 (including prior spending), and an additional $65,139,100 is required to budget for the full amount of the Reconciled Guaranteed Maximum Price. The source of additional funds is proposed to be transferred from the Port Everglades Slip 1 Expansion/ Berths 9 and 10 Bulkheads project