FROM: Robert Thompson, General Manager
Originator: Mike Dorman, Director of Engineering
SUBJECT:
title
COST ESTIMATING SERVICES, CONTRACT NO. PSA2026-002
end
GENERAL MANAGER'S RECOMMENDATION
recommendation
RECOMMENDATION: Recommend to the Board of Directors to:
A. Approve Professional Services Agreements to provide Cost Estimating Services, Contract No. PSA2026-002, for a three-year period with two one-year renewal options effective December 1, 2026, for a combined total amount not to exceed $6,300,000, initially allocated as follows:
• PCSInfra, Inc., - $3,150,000
• CAPO Projects Group, LLC - $3,150,000; and
B. Authorize the General Manager to transfer funds between the two Professional Services Agreements, as needed, to align contract allocations with actual workload distribution, with no increase to the total Board-authorized amount.
body
BACKGROUND
Orange County Sanitation District (OC San) has budgeted for a 10-year $3.6 billion Capital Improvement Program (CIP) and also manages asset management and repair projects through the Engineering Department.
Consultants develop construction cost estimates during planning studies and design. OC San uses in-house staff and Supplemental Engineering Services to develop cost estimates for future projects, review estimates during design, evaluate contractor proposals and change orders, and evaluate value engineering savings. Accurate cost estimates are important for planning the CIP and establishing appropriate project scopes and budgets before construction.
RELEVANT STANDARDS
• Comply with California Government Code Section 4526 to engage the best qualified firm “on the basis of demonstrated competence and qualifications” and “negotiate fair and reasonable fees”
• Ensure the public’s money is wisely spent
• Sustain 1, 5, and 20-year planning horizons
PROBLEM
Over the past six years, inflation and market volatility have made it difficult to develop accurate cost estimates. Cost estimating expertise is needed to reflect the current construction market trends and volatility to more accurately develop costs for long-term capital planning and project budgets.
PROPOSED SOLUTION
Approve two Professional Services Agreements to provide cost estimating services on an as-needed basis.
OC San will assign work based on project needs and the qualifications and availability of each firm’s staff. The General Manager’s authority to transfer funds between the agreements will allow OC San to adjust contract capacity based on actual utilization without increasing the total Board-authorized amount.
Staff will report quarterly to the Board of Directors on utilization of the Cost Estimating contracts through Engineering’s Contracts Performance Report.
TIMING CONCERNS
Delaying approval could result in gaps in cost estimating support for the Capital Improvement Program and asset management projects.
RAMIFICATIONS OF NOT TAKING ACTION
Without these agreements, OC San would continue to rely on existing cost estimating resources that are insufficient to meet anticipated needs, limiting OC San’s ability to develop and review reliable project cost estimates.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Consultant Selection:
On June 16, 2026, OC San issued a Request for Proposals for cost estimating services. Six proposals were received and evaluated using the following criteria:
|
CRITERION |
WEIGHT |
|
Project Understanding and Approach |
30% |
|
Related Project Experience |
35% |
|
Project Team and Staff Qualifications |
35% |
The proposals received the following scores:
|
|
Firm |
Approach (Max 30) |
Related Experience (Max 35) |
Team (Max 35) |
Total Score (Max 100) |
|
1 |
PCSInfra, Inc. |
23 |
26 |
28 |
77 |
|
2 |
CAPO Projects Group, LLC |
21 |
29 |
27 |
77 |
|
3 |
Dynamic Preconstruction Services, LLC |
24 |
27 |
24 |
75 |
|
4 |
AtkinsRealis USA Inc. |
21 |
24 |
25 |
70 |
|
5 |
Innovative Contracting & Engineering |
20 |
23 |
26 |
69 |
|
6 |
Cumming Management Group, Inc. |
17 |
15 |
15 |
47 |
The five highest-scoring firms were shortlisted and interviewed on September 2, 2026. Following the interviews, the firms received the following final scores:
|
|
Firm |
Approach (Max 30) |
Related Experience (Max 35) |
Team (Max 35) |
Total Score (Max 100) |
|
1 |
PCSInfra, Inc. |
25 |
28 |
30 |
83 |
|
2 |
CAPO Projects Group, LLC |
22 |
27 |
28 |
77 |
|
3 |
Dynamic Preconstruction Services, LLC |
25 |
24 |
25 |
74 |
|
4 |
AtkinsRealis USA Inc. |
22 |
23 |
22 |
67 |
|
5 |
Innovative Contracting & Engineering |
17 |
22 |
22 |
61 |
PCSInfra, Inc., and CAPO Projects Group, LLC received the highest final scores and were selected as the most qualified firms. Both firms demonstrated a strong understanding of OC San’s requirements and provided well-tailored approaches to developing reliable, comprehensive cost estimates. Both firms proposed highly experienced and qualified staff with extensive regional civil, water, and wastewater estimating experience. Their experience and demonstrated successful performance on comparable projects closely align with OC San’s needs and provide confidence in their ability to deliver accurate, reliable, and well-supported cost estimates.
Review of Fee Proposal and Negotiations:
Following selection of the most qualified firms, OC San negotiated contract terms and rates with PCSInfra, Inc., and CAPO Projects Group, LLC. Staff determined the negotiated terms and rates to be fair and reasonable.
Staff negotiated final contract terms with PCSInfra, Inc., and CAPO Projects Group, LLC including fringe and overhead rates and applicable contract terms. Based on the above, staff has determined that the final negotiated terms are fair and reasonable and recommends award of the Professional Services Agreements to PCSInfra, Inc., and CAPO Projects Group, LLC.
Contract Value:
The agreements will provide cost estimating services on an as-needed basis. OC San will authorize only the services needed for specific assignments. The initial amount for each agreement is $3,150,000, with a not to exceed amount of $6,300,000. The General Manager may transfer funds between the agreements as needed, with no increase to the total Board-authorized amount.
CEQA
The cost estimating services are not subject to CEQA because it will not result in a direct or reasonably foreseeable indirect physical change in the environment and are not a “project” under CEQA Guidelines Sections 15060(c)(2)-(3) and 15378.
FINANCIAL CONSIDERATIONS
This request complies with the authority levels of OC San’s Purchasing Ordinance. This item has been budgeted (Budget FY 2026-27 and FY 2027-28). Costs will be charged to approved CIP project budgets. The authority to transfer funds between agreements will not increase the total Board-authorized amount.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
• Draft Professional Services Agreements
• Presentation
CM:lb