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CMc Services - IRS Services Limited Scope Modernization

Colorado, United States
Government : Federal
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Sources Sought Notice

CMc Services - IRS Service Center Limited Scope Modernization
IRS Service Center, 1160 W 1200 Street, Ogden, UT 84404-5402

This is a sources sought notice for the U.S. General Services Administration (GSA) , Public Buildings Service, Region 8. This is not a solicitation announcement, and there is no request for proposal or related documents. This sources sought is exclusively for the purpose of market research and to share information about a project opportunity for Construction Manager as Constructor (CMc) services required for limited scope modernization work at the Department of the Treasury - Internal Revenue Service (IRS) Service Center in Ogden, UT. The market research information may be used to assess the competitive environment, determine a method of solicitation, gauge interest from small businesses and small business socioeconomic programs, and for any other planning purposes.

NOTICE:  Pre-solicitation notice GSA47PJ0019Rxxx_IRS was posted through FBO on June 12, 2019. This market research is for the same requirement as the referenced pre-solicitation notice as an ongoing effort to identify sources.

Project Description
This sources sought notice is for CMc services for the existing Government owned, single-story IRS Service Center building. The project site is approximately 60 acres and is located at 1160 W 1200 S Ogden, UT. The building was originally constructed in 1965-1966. It consisted of the South Building, including all areas south of the Central Atrium and the Administrative Area. In 1968-1969, the North Building was constructed along with the Mechanical Room extensions and the enclosed south dock and warehouse spaces. The following year the Health Center was completed. The area known as "Café West" and the exterior playground area were built in 1989-1990. The main entrance at Door "A" and the "Public Access entrance at Door "K" were added in 1992-1993. In 1994-1995, changes were made which extended the perimeter fence, added the north dock and mechanical room, constructed the west visitor's security building and installed security access shelters at the drive entrances. The latest renovation in 2000 involved upgrading the Child Care Center. The Main Building and property is not eligible for the National Register of Historic Places. The IRS Service Center is one of three mission critical facilities for the IRS, and is operational twenty-four hours a day, seven days a week. The building also houses an American First Federal Credit Union branch, Cafeteria Services and a Child Care Center. GSA has determined that the proposed repair and alteration project is the best solution for GSA and IRS in order to address critical needs, reduce future maintenance, improve life safety and efficiency, and minimize repair costs. Funding received for estimated cost of construction at award is about $30 million - $40 million.

General CMc Statement of Work (SOW)
The CMc contract will include three phases: Design Phase Services, Construction Services, and Construction Management Services.

The CMc delivery method will allow full collaboration between the CMc contractor and the design contractor throughout the design process. Design phase services for the CMc will include the review of the IRS work item list and to help the architect/engineer (A/E), IRS and GSA prioritize these work items, and to allow the construction budget to maximize the number building improvements completed. The CMc will provide constructability reviews and cost estimating during this phase. 

In broad terms the Construction Services for this contract will include: general architectural construction (walls, ceilings, finishes), electrical upgrades, mechanical upgrades, fire and life safety upgrades, seismic bracing, roof replacement and paving upgrades.

Construction Management services during construction will be performed by the CMc contractor. This will include but not be limited to: quality control, budget and schedule management, change order review, commissioning assistance, punch list and closeout assistance.

Project Duration and Schedule
GSA anticipates that the design phase will take one year, followed by a two year construction period. Fast tracking some of the work items will be encouraged, taking full advantage of having the CMc contractor on board during the early design phase.

Anticipated Dates for Procurement of Project:

Notice:  The anticipated dates shown below are updated from the original release of the pre-solicitation notice for this requirement.

Issue of Solicitation: July 2019
Proposals Due: August 2019
Contract Award: November 2019
Start of Design Phase Services: November 2019
Start of Construction Work and Construction Manager Services: October 2020
Projected Project Completion: October 2022

The anticipated dates in this sources sought notice are for informational and planning purposes and may be subject to change.

NAICS: The NAICS code for this procurement is 236220, Commercial and Institutional Building Construction, with a small business size standard of $36.5 million.

Subcontracting: In accordance with FAR subpart 19.702(a)(1), a subcontracting plan is required as part of the negotiated agreement for the project opportunity. Failure to submit a subcontracting plan may result in ineligibility for contract award. The requirements of a subcontracting plan are described in FAR subpart 19.704.

Set-Aside: The Government has not made a decision about the type of set-aside. This sources sought notice is part of the market research effort to determine whether to set-aside for a small business or small business socioeconomic contracting program.

Contract Type: The base contract for design services is anticipated to be awarded at a firm-fixed price. The initial contract award will also include an Estimated Cost of Work (ECW) and proposed fixed Fee. The ECW is set by the Government at $30 million - $40 million for the project. The Government will hold any available contingency allowance. The Fee for Construction Work includes the CMc's indirect cost, including overhead and profit for construction phase services. 

The fixed fee For Construction Management Services includes, but is not limited to, any indirect cost, profit, quality control, quality assurance, budget and schedule management, change order review, commissioning assistance, and punch list and closeout assistance for construction management services. 

The ECW and Fee for Construction Work constitute the Guaranteed Maximum Price (GMP). The GMP is inclusive of the proposed Fixed Fee. The ECW may adjust based on design phase services to negotiate a final ECW, but the Fee for Construction Work does not adjust.

The GMP will be tracked through open book accounting that will be reviewed and monitored by GSA and A/E. The GMP is similar to a ceiling price described in FAR subpart 16.403-2, but is specifically tailored for CMc project delivery.

After the parties have agreed to the scope at 100% completed design, the Government and the CMc may agree to bilaterally modify the line item for Construction Phase services and Construction Management Services from the GMP to a firm-fixed price. The firm-fixed price for construction phase services must not be in excess of the GMP.

Construction Phase and Construction Management Services are only required if the Government elects to exercise the option. The Government reserves the right not to exercise the option for Construction Phase and Construction Management Services if the GMP exceeds $30 million - $40 million, there is no agreement on the scope, or if it is not in the Government's best interest.

The project will still be in the design phase when the CMc contract is awarded; therefore, a firm-fixed price cannot be established for Construction Phase Services. The benefit of awarding the CMc contract for Design Phase Services prior to completion of design is that the firm will provide constructability reviews, project coordination, cost estimates, and other specified services to allow for full collaboration with the A/E, IRS, GSA, and other stakeholders during design. CMc also provides benefit through allowing certain construction activities to begin prior to design completion.

Certain activities may be identified for fast track completion (e.g. demolition as an early work package) to deliver the project quicker than alternative methods of project delivery. Early work packages must be converted to a firm-fixed price once the scope is fully specified.

Price: The GMP at award of the construction option is the sum of the final ECW and Fee for Construction Work and fixed Fee for Construction Management Services.

The ECW is the estimated direct cost of the construction work. The ECW is set by the Government at $30 million - $40 million, and the target ECW is incorporated at award as part of the GMP. The final ECW is negotiated during design phase services and incorporated into the option for the construction services after 100 percent design completion.

The Fee for Construction Work is the fixed amount established in the contract for all the CMc's indirect costs, inclusive of profit and overhead for the construction services. The Fee for Construction Work does not adjust based on the ECW.

The fixed Fee for Construction Management Services includes, but is not limited to, any indirect cost, profit, quality control, quality assurance, budget and schedule management, change order review, commissioning assistance, and punch list and closeout assistance for construction management services.

The GMP established at award may be adjusted downward or upward based on the final negotiated ECW.

The Government and CMc may agree to GMP line items for early work packages that must be converted to firm-fixed price. The construction services option is adjusted for the cost of the work packages through the reduction of the ECW by the fixed-price amount of the cost of those work packages, and the GMP is adjusted downward, as appropriate.

Bonding: Contractors will be required to provide a bid bond for the requirement and have sufficient bonding capacity for the proposed work. Interested contractors must have a bonding capacity to perform work on a project estimated between $30 million and $40 million.

Design Errors and Omissions: Settled through GSAM 552.243-71 Equitable Adjustments clause and may be settled as firm fixed-price outside of the GMP.

Information on Proposal Submission: The Government plans to conduct a competitive negotiated acquisition. The Government will use source selection procedures in FAR Part 15 to evaluate proposal packages. Specifically, the Government will evaluate proposals to create a competitive range of the most highly qualified contractors to further discuss qualifications. Accordingly, the Government intends to establish a competitive range to conduct negotiations with the most highly qualified contractors. The competitive range may exclude highly rated proposals that may otherwise be included in the competitive range if it is necessary to achieve efficiency in competition among the most highly rated proposals.

The Government will make a selection based on the proposal that represents the best value to consider past performance, technical factors, and price through a tradeoff process and other procedures described in the solicitation. In the Government's evaluation of proposals, the non-price factors, when combined, are significantly more important than price.

The Government source selection board members will evaluate the following factors:

Evaluation Factor 1: CMc's previous experience in delivering services during the design phase and the construction phase of projects with a GMP. The experience must demonstrate experience with open book accounting.

Evaluation Factor 2: Past performance with design phase services to establish an estimated cost of work within the target established at award and to complete construction phase work within the GMP. Evaluation of past performance may consider other CMc-type contracts or on contracts that use a GMP.

Evaluation Factor 3: Management approach to design phase services and construction phase work. The CMc's approach to design phase services must include but is not limited to schedule development, cost-estimating and cost-reconciliation services, address subcontractor participation, and quality of value engineering services. The CMc's approach to construction services includes but is not limited to scheduling, cost control including contingency management, change order management, and open book accounting.

Total Evaluated Price: The Total Evaluated Price includes: i) the firm-fixed price for design phase services; ii) Fee for construction work; iii) the target ECW; and iv) fixed fee for construction management services.

The Government evaluation will determine the most highly evaluated proposals to establish a competitive range for further discussion and negotiations. The discussions and negotiations with the most highly technically rated proposals will allow for more details about the technical factors to include but not limited to past experience, past performance, management approach, and subcontracting plan and goals.
The Government may include various subfactors in the solicitation as part of the evaluation factors identified above.

Offerors will be required to submit certification letters that their accounting systems meet Generally Accepted Accounting Principles or demonstrate compliance with Cost Accounting Standards.

Document Availability: The solicitation will be available for electronic download from the Federal Business Opportunities website at The download will be available at no charge. All documents are subject to appropriate guidelines, protocols, and procedures to control sensitive but unclassified information.
Other Information: All interested vendors must be registered in the System for Award Management (SAM). Potential offerors should refer to the solicitation package regarding instructions for registration in SAM.

Other Information: All interested vendors must be registered in the System for Award Management (SAM). Potential offerors should refer to the solicitation package regarding instructions for registration in SAM.

Interested contractors may respond to this announcement via email at and copy prior to the response date and time indicated in this announcement. Include with any submitted information the company name, point of contact, business unique entity identifier (such as DUNS), business size and classification, and any information on any previous experience and successful performance with CMc project delivery.

Note:  Any proprietary information submitted in response must be clearly marked.

This request for information shall not be construed as a request for proposal nor as a commitment by the Government. Information is to be provided on a voluntary basis. No reimbursement of direct or indirect costs or charges, including postage and shipping, or any other costs will be made as a result of the submission of any information.

Dylan T. White, Contract Specialist, Phone 3032361084, Email

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