Construction Management at Risk [CMAR]

Construction Management at Risk [CMAR]. A. CMAR Application for All Using Agencies 1. CMAR is a method of project delivery in which a construction manager [CM] guarantees a maximum price for the construction of a project. Each project for construction under a CMAR contract shall be a specific, single project with a minimum construction cost of Twenty-five Million Dollars [$25,000,000]. A specific, single project is a project constructed at a single location, at a common location or for a common purpose. 2. Before using this method of project delivery, the UA shall include a detailed explanation of why using the CMAR method satisfies the public need better than the traditional design-bid-build method based upon the following criteria: (1) use of the CMAR for the project provides a savings in time or cost over traditional methods; and (2) the size and type of the project is suitable for use of the CMAR method of project delivery. 3. Separate contracts for design services and construction services may be used. The contract for construction services may be entered into at the same time as the contract for design services is executed or later with design and construction of the project occurring in either sequential or concurrent phases. The UA may elect to procure a CM prior to substantial completion of the design documents. 4. When procuring design services or when procuring construction management services under a CMAR project delivery method, the UA shall follow the qualifications-based selection procedures and public notice requirements set forth in MISS. CODE ANN. § 31-7-13.2(10). 5. The UA must provide notice by publication in a Professional news bulletin or in the official state newspaper for a minimum of fourteen [14] days. For purposes of these Rules, an official state newspaper shall be considered a regularly published newspaper in the county or municipality where the UA is located. If the UA elects to publish via a Professional news bulletin, the UA must have established procedures in place identifying the bulletin where such advertisements will be made in advance of any such publications. If advertisement is made through use of a Professional services bulletin, such bulletin shall be mailed to each firm on the established notification list and advertisement shall be mailed to all prequalified firms. 6. Advertisements shall set forth the project, the services to be procured, and the time and place for interested firms to submit a letter of interest. The public notice may also require submission of a statement of qualifications with the letter of interest. 7. The UA may establish procedures to prequalify firms seeking to provide CMAR, architectural, engineering, and land surveying services or may use prequalification lists from other state agencies or governing authorities. Any firm desiring to be considered for pre-qualification shall provide the UA a written notice of interest prior to the deadline stated in the advertisement along with any other documentation required. 8. The UA shall evaluate the firms who submitted letters of interest based on qualifications, ability of Professional personnel, past record and experience, performance data on file, willingness to meet time requirements, location, workload of the firm, and any other qualifications-based factors the UA determines, in writing, are applicable. 9. The UA shall establish an evaluation committee to select firms and such committee must include at least one [1] member of the public nominated by a statewide association of the profession affected but such public member shall not be employed or associated with any firm holding a contract with the UA nor may the public member’s firm be considered for a contract with that UA while serving as a public member of the committee. The committee shall select no less than three firms it determines to be qualified and rank them in order of qualifications to provide services regarding the specific project. The UA shall then contact the firm ranked most preferred to negotiate a contract at fair and reasonable compensation. At no time prior to selection of the three firms may the UA seek verbal or written estimates of costs or any measure of compensation. 10. The UA shall negotiate a contract with the highest qualified firm for a price the UA determines, in writing, is fair and reasonable. The UA shall consider the estimated value, scope, complexity, and Professional nature of the services to be rendered. If a fair and reasonable price cannot be negotiated with the most qualified firm, the UA should attempt to negotiate with the second most qualified firm. If those negotiations fail, the UA may negotiate with the third most qualified firm. If that fails, the UA shall reevaluate the services requested, including the estimated value, scope, complexity, and fee requirements. The UA shall then create a second list of not less than three qualified firms in order of qualification and shall begin negotiations with the most qualified firm on the second list. B. CMAR Application for All Using Agencies except IHL 1. For all UAs other than existing or future Mississippi Institutions of Higher Learning or its related entities, joint ventures, or subsidiaries governed by or in connection with the named institutions [hereafter collectively referenced as “IHL”], the CM selected by the UA shall solicit bids for construction pursuant to MISS. CODE ANN. § 31-7-13 and shall enter into contracts with the lowest and best bidders, as determined in consultation with the UA. Before soliciting for bids or entering into contracts, the CM, in consultation with the UA, may prequalify any Contractors or vendors seeking to submit a bid on the project based upon the qualifications set forth in § 31-7-13.2(11)(a). 2. Prequalification of Contractors or vendors shall occur when the CM, in conjunction with the UA, publishes the defined qualifications that shall be considered in the prequalification process at least two [2] weeks in advance of any publication of Contractors or vendors seeking to submit a bid on the project. Publication shall be in a regular newspaper published in the county or municipality in which the UA is located. The UA shall also post the defined prequalification requirements on its website. 3. Failure by the bidder to provide information timely and in a complete manner in response to any prequalification process may result in disqualification of the bidder at the discretion of the UA and CM. 4. Except as otherwise provided in MISS. CODE ANN. § 25-61-9, confidential and proprietary information furnished by the CM or vendor shall not be disclosed outside of the UA without prior written consent of all parties. The CM, Contractor, or vendor shall identify and label all information considered confidential or proprietary at the time of submission to the UA or CM. C. CMAR Application for IHL 1. Where the CMAR method of project delivery is utilized by IHL, it shall instead utilize the requirements set forth in MISS. CODE ANN. § 31-7-13.2(13) and the CM, in conjunction with the IHL, shall be permitted to obtain proposals from Contractors or vendors deemed to be fair and reasonable based upon a written description of the scope of work with those proposals being based on the qualification and criteria set forth in MISS. CODE ANN. § 31-7-13.2(13)(b). The CM is not required to follow the bid process set forth in MISS. CODE ANN. § 31-7-13. The CM shall then be entitled to enter into contracts for construction with Contractors and vendors that the CM deems to be the preferred Contractor or vendor based upon the criteria set forth in MISS. CODE ANN. § 31-7-13.2(13)(b). 2. In such cases, the CM must publish the defined qualifications to be considered in the process for selection of Contractors and vendors at least four [4] weeks in advance of any award. Publication shall be in a regular newspaper published in the county or municipality in which the IHL is located. The IHL shall also post the defined prequalification requirements on its website. 3. Failure by a Contractor or vendor to provide information timely and in a complete manner in the selection process may result in disqualification of the Contractor or vendor at the discretion of the IHL and CM. 4. Except as otherwise provided in MISS. CODE ANN § 25-61-9, confidential and proprietary information furnished by the CM or vendor shall not be disclosed outside of the IHL without prior written consent of all parties. The CM, Contractor, or vendor shall identify and label all information considered confidential or proprietary at the time of submission to the IHL or CM. 5. The CM selected by the IHL shall not be required to submit a proposed guaranteed maximum price for the construction of a project, or for a phase or component of the project, until after the CM obtains the contemplated proposals from potential Contractors and/or vendors for that project, phase, or component, and the IHL has issued a completed set of construction drawings and specifications for the project, phase or component. 6. A CM or its affiliates may self-perform construction work on a project so long as the CM or affiliate submits a proposal for a specific scope of work and all proposals are reviewed by the IHL, deemed to be fair and reasonable compared to other proposals for the same or similar scope of work, and an award to the CM or its affiliate is determined to be in the overall best interests of the project as a whole. In such situation, a CM or its affiliate(s) shall only be allowed to self-perform construction work on no more than fifteen percent [15%] of the project.