To: Board of Supervisors
From: Brian M. Balbas, Public Works Director/Chief Engineer
Report Title: Amendment No. 1 to Contract with Vanir Construction Management, Inc. for Construction Management Services for Various Measure X Funded Healthcare Projects at CCRMC and 20 Allen Street.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Public Works Director, or designee, to execute a contract amendment with Vanir Construction Management, Inc. (Vanir), effective retroactively to April 4, 2023, to permit Vanir’s subconsultant, Cannon/Parkin, Inc. (Cannon), to charge reimbursable travel expenses related to their travel to the County from outside of the nine Bay Area counties for services necessary and authorized by the County.
FISCAL IMPACT:
No Fiscal Impact. The Contract Payment Limit will remain unchanged.
BACKGROUND:
On April 4, 2023, the Board of Supervisors approved a Consulting Services Agreement with Vanir in the amount of $6,093,348.
The Contract Payment Limit was based on a project budget prepared by Vanir which anticipated that master planning services would be performed by Cannon team members located at various locations outside of the Bay Area and that travel reimbursement would be required for those team members to engage in meetings and tour facilities locally. Therefore, the $6,093,348 Payment Limit anticipates reimbursement of those expenses.
The Consulting Services Agreement with Vanir, as executed, does not allow reimbursement of travel expenses to County jobsites and offices, even if the originating location is outside of the nine Bay Area counties. Therefore, a contract amendment is needed to permit Vanir to charge costs as anticipated in their originally proposed budget.
CONSEQUENCE OF NEGATIVE ACTION:
If Amendment No. 1 is not approved, the consultant will not be permitted to collect reimbursement for travel expenses of their subconsultant as Vanir had anticipated, and Vanir will be incentivized to resist providing services that are best served by Cannon staff being present locally.