Creative Contracting Strategy Delivers Utah`s

Conference: Design-Build for Water/Wastewater Conference 2016
Paper/Presentation Title: Creative Contracting Strategy Delivers Utah's Newest Biosolids Cogen Facility
Using Progressive Design-Build
Authors: Kevin Cowan, North Davis Sewer District; Brandon Heidelberger, Brown and Caldwell; Ben
McGeachy, MWH Constructors
Contact: Brandon Heidelberger - [email protected]
Abstract
Creative Contracting Strategy Delivers Utah's Newest Biosolids Cogen Facility Using
Progressive Design-Build
North Davis Sewer District (NDSD) used the progressive design-build delivery method to implement an
ambitious biosolids and cogeneration expansion project. This presentation will discuss how the use of
progressive design-build has enhanced the development of what will become a flagship wastewater
facility for energy efficiency. Thanks to an effective procurement plan, strong collaboration and a clear
understanding of client priorities, this project is currently on track to be delivered more than $2M under
the Guaranteed Max Price and three months ahead of schedule.
Learning Objectives:
• Procurement Best Practices for Design-Builder Best Value Selection: The District wanted to
secure the most qualified team members and select the equipment it wanted to maintain and
operate for years to come. A quals-based approach that enabled owner involvement was best
achieved through the progressive design-build delivery model. The District also aimed to
support the local economy (and keep the community’s money in the community) and have an
early understanding of cost to secure adequate financing.
• Means for Successful Progressive Design-Build Project Procurement and Project Completion:
With BC providing solid analysis of delivery methods, the District chose Progressive Design Build
to ensure client priorities were achieved and realize the benefits as fast as possible by retaining
control to select proven team, equipment, and other design features, flexibility to make design
changes without needing to go back to the board for approval, supporting the local economy by
maximizing local subcontractor involvement, early understanding of cost and an agreed upon
Guaranteed Max Price, efficiency with a single-point of contact for delivery, innovative ideas to
meet energy efficiency goal, managing multiple task orders to maintain cash flow.
• Project Planning and Execution Methods to Create Best Value Assets Using Design-Build: The
New Cogeneration Facility Project replaces two, older technology engine-generators with high
efficiency advanced reciprocating engine system (ARES) lean-burn engine-generators. This will
allow the plant to fully realize current and future biogas production and expand capacity. The
Primary Sludge Thickening Building Project includes the construction of a new 15,000 square
foot building. It will add primary sludge and scum thickening to the existing biosolids treatment
process to remove excess water, reduce the hydraulic and heating load on the digestion
process, and increase capacity.
• How to Maximize Project Innovation Using Design-Build Project Delivery: The BC team helped
save the District $30M. $22M Saved - The District avoided having to build two new digesters by
constructing a new thickening facility. $8M Saved – By conducting structural analysis and a
condition assessment, BC was able to reuse existing tanks and covers. Installation of new
engines will allow them to use 100% of their digester gas.
A Presentation by
North Davis Sewer District
Creative Contracting
Strategy Delivers Utah’s
Newest Biosolids
Cogeneration Facility
Using Progressive
Design Build
Today’s Agenda
01
02
03
04
Project
Overview and
Background
Best Practices
for DesignBuilder
Selection
Progressive
Design-Build
Planning,
Procurement
and
Completion
Innovation
Using
Progressive
Design-Build
Project Overview
and Background
District service area and facilities
• 7 cities in 2 counties
• 80 square miles
• Population served 215,000
• 100 miles of sewer mains
and over 1,840 manholes
• 34 MGD treatment plant
• Offsite biosolids storage
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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District Goals
• Cost effective solutions
• Proven team and performance
“We want it
our way …”
• World class plant
• High quality workmanship
• Single point of responsibility for
design and construction
• Maximize involvement of local
subcontractors
• Procurement of preferred
equipment
• Owner involvement throughout
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Project overview
When the plant’s expansion is complete, North Davis
Sewer District will have one of the most energy
efficient facilities in the US with the ability to
generate up to 90 percent of its energy needs.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Why now?
With Utah’s population increasing and several of the biosolids treatment facilities at or over
capacity, the District needed to expand and improve its service capacity.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Recent primary digester loading
(lbs /1000 cu ft/d)
Volatile Solids
Loading (2009)
(lbs /1000 cu ft/d)
Solids Retention
Time (2008)
Solids Retention
Time (2009)
503 Requirement
<120
<120
>15
>15
365-day avg
109
115
16.5
16.7
Max. 30-day avg
144
138
13.5
13.2
Max. 14-day avg
147
145
12.0
12.6
Averaging Period
Volatile Solids
Loading (2008)
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
(days)
(days)
Our team’s innovative approach increased
capacity to handle future growth
The recommended biosolids process improvements were broken into three projects over a
five-year period to maintain cash flow and maximize local involvement.
Primary Sludge
Thickening Building
New Cogeneration
Facility
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
Secondary Digester
Mixing and Heating
9
A closer look at the three projects…
Secondary Digester Mixing and Heating
This project increases the digestion process capacity and brings the plant into compliance with
State and Federal regulations.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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A closer look at the three projects…
New Cogeneration Facility
•
•
Replaces two, older technology engine-generators with high efficiency advanced reciprocating
engine system (ARES) lean-burn engine-generators.
Will allow the plant to fully realize current and future biogas production and expand capacity.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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A closer look at the three projects…
Primary Sludge Thickening Building
This project includes the construction of a new 15,000 square foot building. It will add primary
sludge and scum thickening to the existing biosolids treatment process to remove excess water,
reduce the hydraulic and heating load on the digestion process, and increase capacity.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Evolution of the project
The District expanded and improved the
liquid treatment portion of its Wastewater
Treatment Facility to handle projected
future flows and pollutant loadings in the
mid 2000s.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
In 2010, it shifted its
focus to the biosolids
portion of the facility in
order to bring it up to the
capacity and technology
level of the liquid
treatment facilities.
13
Ultimately, the District wanted to ensure capacity to:
•
•
•
•
•
•
reliably and safely treat future solids loads,
provide a robust biosolids process using proven technology,
reduce odors,
improve air quality,
increase overall efficiency,
and meet current and future regulatory requirements.
“… and we want
all of it!”
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Simply stated …
Our goals will have been met if the project results
in a high quality facility that we are genuinely happy
with and not something that we just tolerate for the
next 30 years, all the while regularly blaming the
@!#*&% engineers and contractors.
In the end, we should all
be proud to have been a
part of the project.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Best Practices for DesignBuilder Selection
Understand and manage different
business interests
OWNER
ENGINEER
CONTRACTOR
• Cost control (project)
• Cost control (contract)
• Cost control (contract)
• Meet intent
(it works)
• Positive Owner
reference
• Business performance
• Workload management
• Business performance
• Schedule
• Liability control
(risk management)
• Sustained operations
• Meaningful Owner’s
input
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
• Subcontractor
relationship
• Risk equity
• Positive Owner
reference
• Schedule
17
Conventional (DBB) project interaction
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Design-Build (DB) project interaction
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Progressive design-build project interaction
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Choosing progressive design-build
Having completed a highly successful liquids
treatment expansion, the District wanted to
secure proven team members and select the
equipment it wanted to maintain and
operate for years to come.
The District also aimed to
support the local economy and
have an early understanding of
cost to secure adequate
financing.
A quals-based approach that
enabled owner involvement
was best achieved through
Progressive Design-Build.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Benefits of Progressive Design-Build Approach
Advantage
DesignBuild
Design-Bid-Build
Proven team and performance
Yes
No. Bidder’s are not pre-qualified.
Single point of responsibility
Yes
No. Owner between Engineer and
Contractor.
All work packages competitively bid
Yes
Yes
Maximize local subcontractor
involvement
Yes
No requirement for award to local
subcontractors.
Open book contracting with savings
returned to Owner
Yes
No. All savings stay with
Contractor.
Construction involvement during design
Yes
No. Construction involvement
begins after design and bid.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Progressive design-build at North Davis
 Owner maintains control/input.
 Qualification selection of contractor
 Final cost and schedule known earlier
 Flexibility to make changes/select equip.
 Better project
•
•
Operations input
Innovative ideas to meet goals
 Team vs. adversarial relationship
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Progressive Design-Build
Planning, Procurement
and Completion
Planning the project
• Owner defined criteria
• Operations and
maintenance buy-in
• 3D visualization
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Procuring the team
• Design-builder No selfperform
• Maximize local participation
• 22 subcontractor bid
packages ranging from
$31,793 to $7,040,428
• 17 equipment bid packages
• Bid packages tailored to local
ranging from $1,490 to
contracting community
$4,037,791
• Prequalification
• Owner involvement
• Top 3
• All work performed by
contractors located within an
hour of the plant
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Continual improvement during
construction
• Team members
encouraged to bring
ideas forward
• Weekly progress
meetings served as
framework for brainstorm
sessions
• C&SU doesn’t stop until
we get it right
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Operations & Maintenance buy-in
• Owner staff – Routine job
walks during
construction
• Adherence to plant
standards
• Active participants in
C&SU process
• No long-term
maintenance contracts
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Open book financials
• Full disclosure
guaranteed
maximum price
(GMP)
• GMP included
project contingency
and District’s
General Manager
authorized to utilize
without additional
board authorization
• Monthly financial
updates
• Unspent contingency
returned to owner
Project Progress and Payment Summary
This section presents important data concerning payments authorized, change
orders, progress status, and percent of work completed. A Progress curve is used
as a graphical representation of the general progress of work and its relationship
to the amount of contract time elapsed.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Innovation Using
Progressive Design-Build
New equipment maximized sustainability
investment
The District is capable of
producing up to 100 percent of
its process heating needs.
The facility’s new Cogeneration
engines are nearly 40 percent
more efficient than the former
engines, which allows the
District to use 100 percent of its
biogas.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Maximize cost savings through
design and delivery
Avoiding construction of
two primary digesters
$22M Saved.
Existing secondary
digester tanks and
covers were able to be
reused $8M Saved.
Sufficient capacity until
2035 and beyond.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Overcoming challenging site conditions
• Construction adjacent to
existing structures.
• High ground-water.
• Deep excavation and
unstable soils.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Being a good neighbor…
• Environmentally sensitive
design decreased NOx
emissions by 61%.
• Angled stacks direct sound
away from nearby
communities.
• Odor mitigation and
removal of solids storage.
• Environmentally sensitive
lighting.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Progressive Design-Build helped the District
achieve its priorities:
• Retaining control to select
proven team, equipment, and
other design features
• Flexibility to make design
changes without needing to
go back to the board for
approval
• Supporting the local economy
by maximizing local
subcontractor involvement
• Early understanding of cost
and an agreed upon
Guaranteed Max Price
• Delivering efficiently through
a single-point of contact
• Encouraging innovative ideas
to meet energy efficiency goal
…And realize the benefits
as quickly as possible.
Brown and Caldwell | MWH Constructors | NDSD – 2016 Design-Build for Water/Wastewater
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Thank you.
Questions?