ITEM TITLE:
Approval of Contract Award with Orion Construction Inc for Child Care Center Building Renovation in the Amount of $ 3,415,360.
SUBMITTED BY: Lindy Vititow, Capital Facilities Project Manager II
FISCAL NOTES:
Expenditure Required: $ 3,415,360
Unencumbered Balance: $ 2,991,930 Amount Prior to Budget Adjustment Request
Funding Source: 310-3340-49520
RECOMMENDATION:
Approve the contract with Orion Construction Inc for the Child Care Center Building Renovation in the amount of $3,415,360.
SUMMARY STATEMENT:
Project Background: The Valdez community requested funding from the Alaska federal delegation to meet the need for full-time childcare options. The city has been awarded a FY 2024 EDI-CPF Federal Grant administered by HUD in the amount of $3,000,000 to be used for the new Child Care Center Building Renovation project. Prior to project design, the former VCS district offices building was chosen as the preferred location. Design consultants issued a 65% design document set for the city to solicit an RFP for a general contractor to join the city’s design team and provide CM (construction manager) services for project cost estimating and value engineering purposes. The city entered into a service agreement with Orion, in the amount of $2,500 for Construction Manager services only. During the CM phase, Orion proposed value engineering options to the design team, resulting in VE savings to the original 65% design cost estimate in the amount of $200,000. Because Orion performed successfully during CM services and provided the City with a final GMP (Guaranteed Maximum Price) to complete all project construction work, Orion is being selected for the GC (General Contractor) phase to construct the project.
Project Procurement: The City of Valdez issued a CM/GC (Contract Manager/ General Contractor) Request for Proposals solicitation on July 23, 2026, for the Child Care Center Building Renovation project. Three general contracting companies submitted propo...
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