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MURIEL BOWSER
MAYOR
July 1, 2025
Honorable Phil Mendelson
Chairman
Council of the District of Columbia
John A. Wilson Building
1350 Pennsylvania Avenue, NW, Suite 504
Washington, DC 20004
Dear Chairman Mendelson:
Pursuant to section 451 of the District of Columbia Home Rule Act (D.C. Official Code § 1 -
204.51) and section 202 of the Procurement Practices Reform Act of 2010 (D.C. Official Code §
2-352.02), enclosed for consideration and approval by the Council of the District of Columbia is
Contract No. DCAM -25-CS-RFP-0006 with Corenic Construction Group, LLC, in the not -to-
exceed amount of $6,808,979.50 (including an existing letter contract amount of $950,000). The
not-to-exceed amount is an early release of funds for the initial phase of the modernization of the
Advanced Technical Center at the Penn Center.
As part of the initial phase of the project, Corenic Construction Group, LLC will provide design
and preconstruction deliverables while the District and Corenic Construction Group, LLC finalize
the full scope and guaranteed maximum price for the project.
My administration is available to discuss any questions you may have regarding this contract. In
order to facilitate a response to any questions you may have, please contact Delano Hunter,
Director, Department of General Services (“DGS”), or have your staff contact Eric Njonjo, Acting
Chief Procurement Officer, DGS, at (202) 727-2800.
I look forward to the Council’s favorable consideration of this contract.
Sincerely,
Muriel Bowser
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GOVERNMENT OF THE DISTRICT OF COLUMBIA
Office of Contracting and Procurement
Pursuant to section 202(c) of the Procurement Practices Reform Act of 2010, as amended, D.C.
Official Code § 2-352.02(c), the following contract summary is provided:
COUNCIL CONTRACT SUMMARY
(Letter Contract)
(A) Contract Number: DCAM-25-CS-RFP-0006
Proposed Contractor: Corenic Construction Group, LLC
Contract Amount (ESA #1): Not-to-Exceed (“NTE”) Amount of $6,808,979.50
(includes $950,00.00 Letter Contract amount)
Unit and Method of Compensation: Progress Payments on a monthly basis
Term of Contract: June 2, 2025 (date of execution of the Letter Contract by
the Department of General Services) through October 16,
2026 (“Substantial Completion Date”) with a Final
Completion Date of December 14, 2026, and an
Administrative Term of January 13, 2027.
Type of Contract: Cost plus fixed fee with a guaranteed maximum price
(“GMP”)
Source Selection Method: Competitive Request for Proposal
(B) For a contract containing option periods, the contract amount for the base period and for each
option period. If the contract amount for one or more of the option periods differs from the
amount for the base period, provide an explanation of the reason for the difference:
N/A
(C) The date on which the letter contract or emergency contract was executed:
The Notice to Proceed & Letter Contract (“Letter Contract”) was executed on June 2, 2025.
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(D) The number of times the letter contract or emergency contract has been extended:
The Letter Contract has not been extended or modified.
(E) The value of the goods and services provided to date under the letter contract or emergency
contract, including under each extension of the letter contract or emergency contract:
The total value of services provided to date is $950,000.00, which represents the initial NTE amount
established by the Letter Contract.
(F) The goods or services to be provided, the methods of delivering goods or services, and any
significant program changes reflected in the proposed contract:
If approved, DCAM-25-CS-RFP-0006 (the “Contract”) will authorize Corenic Construction Group,
LLC, (the “Contractor ”) to provide design and construction services to complete the Phase 2
expansion of the Advanced Technical Center (“ATC”) at the Penn Center, located at 1709 3rd Street,
NE, Washington, DC, 20002 (the “Project”) . The Project will be completed in two phases: (i) the
Design and Preconstruction Phase; and (ii) the Construction Phase. The substantial completion of the
Project shall occur on or by October 16, 2026, with a milestone delivery date of the ATC Classroom
Areas by July 17, 2026.
The Project includes full design and construction services for the ATC. The Department of General
Services (the “Department” or “DGS”) seeks Council approval to execute the proposed Contract. If
approved, the Contract will establish an early start agreement in the NTE amount of $6,808,979.50,
which is inclusive of the $950,000.00 Letter Contract amount. As the proposed Contract value is more
than $1 million, Council approval is required for this contract action.
(G) The selection process, including the number of offerors, the evaluation criteria, and the
evaluation results, including price, technical or quality, and past performance components:
On December 20, 2024, the Department issued a Request for Proposals ( “RFP”) to engage a highly
qualified design-builder (“Design-Builder”) for the Project. A pre-proposal conference was held on
January 6, 2025; the site visit was held on January 10, 2025. There was an additional site visit on
January 24, 2025.
There were five (5) Addenda issued to this RFP . Addendum No. 1 was issued on January 9, 2025,
and provided the attendance sheet for the virtual pre-bid conference held on January 6, 2025, at 2:00
P.M. Addendum No. 2 was issued on January 10, 2025, and provided the attendance sheet for the site
visit held at 1709 3rd St., NE, Washington, DC. 20002 on January 10, 2025, at 10:00 AM. Addendum
No. 3 was issued on January 23, 2025, and provided details on the additional site visit held at 1709
Third St. NE, Washington, DC. 20002 on Friday, January 24, 2025, at 2:00 PM. Addendum No. 4
was issued on January 29, 2025, and provided revised drawings and specifications. Addendum No. 5
was issued on January 31, 2025, and provided and incorporated the Questions and Answers in the
procurement portal into the RFP.
3
On the Proposal due date, February 6, 2025, the following eleven (11) firms submitted responsive
proposals.
Each offeror’s (“ Offeror(s)”) technical proposal was independently evaluated by a Technical
Evaluation Panel (“TEP” or “Panel”). A kick -off meeting was held with the Panel on February 11,
2025. Proposals were then scored on a scale of zero (0) to one hundred and twelve (112) points. The
(112) points include eighty (80) points for the technical criteria, twenty (20) points for pricing, and
up to twelve (12) points based on the Offeror’s status as a CBE. The TEP met on March 24, 2025, to
develop a consensus technical score and supporting written narrative for each Offeror. In developing
the consensus score, the Panel discussed the details of each proposal in light of the evaluation factors
and subfactors.
The Department’s contracting officer (“Contracting Officer” or “CO”) carefully reviewed each of the
proposals and independently rated each Offeror. The CO further carefully reviewed the evaluation
process followed by the Panel, their notes and scoresheets, and their final consensus technical
evaluation. Considering the Department’s historical experience with the proposed Offerors and, to
the extent necessary, reviewing the underlying proposals, the Contracting Officer scored the Offerors
differently. In addition to the price and technical scoring, a certain number of points were available
for each Offeror based on its status as a Certified Business Enterprise (“CBE”) as determined by the
Department of Small and Local Business Development (“DSLBD”). The Contractor was so certified
and received points accordingly. When the total points for all three components (technical, price, and
CBE preference) were combined, the Contractor was the highest -ranked Offeror. The overall
proposed price submitted by the Contractor, in the amount of $3,455,716.00, was above the
Department's independent government estimate. In order to enter into a contract for the required
services with the Contractor at a fair and reasonable price, the CO entered into negotiations with the
Contractor in accordance with 27 DCMR §§ 4721 and 1634.1 and D .C. Official Code § 2 -354.03
(h)(2), which permits the Contracting Officer to negotiate with the highest -ranked prospective
contractor on price or matters affecting the scope of the contract, so long as the terms of the final
contract are within the scope of the request for proposals. The CO has determined that the revised
price proposed by the Contractor of $2,750,000.00, in comparison with the other proposed prices, is
fair and reasonable, and a mutually satisfactory award was successfully concluded with the
Contractor. Further, an adequate budget is available to support the negotiated price. Memorialized by
an award memorandum executed on April 30, 2025, the Department awarded Contract No. DCAM-
25-CS-RFP-0006 to the Contractor, as such an award would be most advantageous to the District.
(H) A description of any bid protest related to the award of the contract, including whether the
protest was resolved through litigation, withdrawal of the protest by the protestor, or voluntary
corrective action by the District. I nclude the identity of the protestor, the grounds alleged in
the protest, and any deficiencies identified by the District as a result of the protest:
The award of the Contract was not protested.
4
(I) A description of any other contracts the proposed contractor is currently seeking or holds with
the District:
The list of current and proposed District projects the Contractor is involved in is provided below:
Contracts currently held:
1. DC Archives Building – Joint Venture
2. Advanced Technical Center Phase 2
Seeking:
1. Parkview Recreation Center Project
2. Ward 8 Senior Wellness Center Construction Services
(J) The background and qualifications of the proposed c ontractor, including its organization,
financial stability, personnel, and performance on past or current government or private sector
contracts with requirements similar to those of the proposed contract:
The Contractor has a track record of providing successful design and construction solutions that are
customer-centric, and the firm boasts a dedicated and experienced team of professionals.
The Contractor is headquartered in Washington, DC, and has performed satisfactorily on design and
construction projects within the District. The Contractor has successfully completed the following
recent projects:
1. AmeriHealth Caritas Office space in Washington, DC.
2. Dreaming Out Loud’s community center in Washington, DC.
3. Starbucks fit out in the Anacostia neighborhood of Washington, DC.
The Contractor possesses the financial stability to successfully perform the Project and has provided
a staffing plan for the Project, which has been reviewed and approved by the Department. The
Contractor has been determined responsible in accordance with 27 DCMR § 4706.1.
(K) A summary of the subcontracting plan required under section 2346 of the Small, Local, and
Disadvantaged Business Enterprise Development and Assistance Act of 2005, as amended, D.C.
Official Code § 2 -218.01 et seq. (“Act”), including a certification that the subcontracting plan
meets the minimum requirements of the Act and the dollar volume of the portion of the contract
to be subcontracted, expressed both in total dollars and as a percentage of the total contract
amount:
The Contractor is a certified business enterprise in accordance with the Act (CBE Number:
LSDZ56256082024). Pursuant to D.C. Official Code § 2-218.46 (d-1), the Contractor shall submit a
detailed subcontracting plan to DSLBD that meets the requirements of D.C. Official Code § 2-
218.46(d), before entering into a guaranteed maximum price.
Contract’s NTE Dollar Value: $6,808,979.50
Subcontracting Requirement %: 35%
Self-performing: 61%
5
Subcontracting Plan Required Dollar Value: $ 2,383,142.83
Subcontracting Plan Actual Dollar Value: $4,191,673.50
(L) Performance standards and the expected outcome of the proposed contract:
The Contractor is required to provide all design, preconstruction, and construction services and other
services necessary to substantially complete the Project no later than October 16, 2026. In general,
the Contractor must perform the requirements contained in the Contract and meet or exceed the
performance standards therein. The Contractor is subject to liquidated damages of Two Thousand
Five Hundred Dollars ($2,500) plus Two Hundred and Fifty Dollars ($250) per day of delay for
failure to timely achieve substantial completion of the Project.
(M) The amount and date of any expenditure of funds by the District pursuant to the contract prior
to its submission to the Council for approval:
N/A
(N) A certification that the proposed contract is within the appropriated budget authority for the
agency for the fiscal year and is consistent with the financial plan and budget adopted in
accordance with D.C. Official Code §§ 47-392.01 and 47-392.02:
The Office of the Chief Financial Officer has certified that the proposed Contract’s NTE amount is
consistent with the Department’s budget and that adequate funds are available in the Department’s
budget in accordance with D.C. Official Code § § 47-392.01 and 47- 392.02. The applicable fiscal
sufficiency certification accompanies this council package.
(O) A certification that the contract is legally sufficient, including whether the proposed contractor
has any pending legal claims against the District:
The proposed contract has been deemed legally sufficient by the Department’s Office of the General
Counsel, and the Contractor does not appear to have any currently pending legal claims against the
District.
(P) A certification that the Citywide Clean Hands database indicates that the proposed contractor
is current with its District taxes . If the Citywide Clean Hands Database indicates that the
proposed contractor is not current with its District taxes, either: (1) a certification that the
contractor has worked out and is current with a payment schedule approved by the District; or
(2) a certification that the contractor will be current with its District taxes after the District
recovers any outstanding debt as provided under D.C. Official Code § 2-353.01(b):
The Citywide Clean Hands database indicates that the Contractor is in compliance with the
Government of the District of Columbia tax laws and regulations. The applicable Clean Hands
certification for the Contractor accompanies this council package.
(Q) A certification from the proposed contractor that it is current with its federal taxes, or has
worked out and is current with a payment schedule approved by the federal government:
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The Contractor has certified that it is current with its federal taxes.
(R) (1) A certification that the proposed contractor has been determined not to be in violation of
section 334a of the Board of Ethics and Government Accountability Establishment and
Comprehensive Ethics Reform Amendment Act of 2011, D.C. Official Code § 1- 1163.34a; and
(2) A certification from the proposed contractor that it currently is not and will not be in
violation of section 334a of the Board of Ethics and Government Accountability Establishment
and Comprehensive Ethics Reform Amendment Act of 2011, D.C. Official Code § 1-1163.34a:
Based upon a certification from the Contractor, the Contractor has been determined not to be in
violation of D.C. Official Code § 1-1163.34a; and will not be in violation of D.C. Official Code § 1-
1163.34a.
(S) The status of the proposed contractor as a certified local, small, or disadvantaged business
enterprise as defined in the Small, Local, and Disadvantaged Business Enterprise Development
and Assistance Act of 2005, as amended; D.C. Official Code § 2-218.01 et seq.:
According to the DSLBD website, the Contractor is a certified Local Business Enterprise, Longtime
Resident Business, Development Enterprise Zone and Resident Owned Business. The Contractor’s
CBE Number is LSDZ78344052027, with an expiration date of May 31, 2027.
(T) Other aspects of the proposed contract that the Chief Procurement Officer considers
significant:
N/A
(U) A statement indicating whether the proposed contractor is currently debarred from providing
services or goods to the District or federal government, the dates of the debarment, and the
reasons for debarment:
The Contractor is not debarred from providing services to the Government of the District of Columbia
or the Federal Government according to the Office of Contracts & Procurement’s Excluded Parties
List and the Federal Government’s Excluded Parties List.
(V) Any determination and findings issues relating to the contract’s formation, including any
determination and findings made under D.C. Official Code § 2-352.05 (privatization contracts):
N/A
(W) Where the contract, and any amendments or modifications, if executed, will be made available
online:
Contract award information is available on the OpenGov portal. The Contract will be made
available on the OpenGov portal upon approval.
7
(X) Where the original solicitation, and any amendments or modifications, will be made available
online:
The original solicitation and any amendments have been posted on the DGS website.
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/i255
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
Memorandum
To: Delano Hunter
Director
From: Antoinette Hudson - Beckham
Agency Fiscal Officer
Reference: Proposed Contract No. DCAM-25-CS-RFP-0006
Design-Build Services for Advanced Technical Center Phase 2 Expansion at the
PENN Center
Date: June 11, 2025
Subject: Fiscal Sufficiency Review
In my capacity as the Agency Fiscal Officer of the Department of General Services (the “Department”),
I hereby state that the Design-Build Services for Advanced Technical Center Phase 2 Expansion at the
PENN Center (DCAM-25-CS-RFP-0006), with Corenic Construction Group LLC. (the “Contractor”)
and a n ot-to-exceed (“NTE”) amount of $6,808,979.50 is consistent with the Department’s current
budget and that adequate funds are available in the budget for the expenditure.
Per the Department’s Contracts & Procurement (“C&P”) team, on June 2, 2025, the Letter Contract was
executed by the Department, with an initial Not- to-Exceed (“NTE”) amount of $950,000.00. The
proposed $5,858,979.50 will increase the NTE to $6,808,979.50 ($5,858,979.50 + $950,000.00).
The Department of General Services (DGS – Implementor) has $6,808,979.50 in the Office of the State
Superintendent of Education (OSSE – Owner) its cumulative capital budget authority balance.
The PASS/DIFS information is listed below/attached.
Project Name Project # AY Fund Detail Imp. Agency Owner Agency RK/PO # Amount Comments
AM0.ATCG1C.CTE
ADVANCED
TECHNICAL
CENTER 1
100009 N/A 3030300 AM0 GD0 RK294449 $950,000.00 Letter Contract
AM0.ATCG1C.CTE
ADVANCED
TECHNICAL
CENTER 1
100009 N/A 3030300 AM0 GD0 RK306092 $5,858,979.50 Proposed
Increase
TOTAL $6,808,979.50
Antoinette Hudson Beckham
Agency Fiscal Officer
Department of General Services
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
______________________________________________________________________________
Page 1 of 1
Memorandum
TO: Tomás Talamante
Director, Office of Policy and Legislative Affairs
FROM: Kristen Walp
Senior Assistant General Counsel
SUBJECT: Legal Sufficiency Certification
Design-Build Services for Advanced Technical Center Phase 2 Expansion at
the PENN Center
Contract Number: DCAM-25-CS-RFP-0006
Contractor: Corenic Construction Group LLC
DATE: June 11, 2025
_____________________________________________________________________________
This is to certify that this Office has reviewed the above-referenced proposed Contract and
has found it to be legally sufficient, subject to submission of: (i) any required materials to
Council for approval; (ii) Council’s approval of the same; and (iii) a Fiscal Certification
issued by the Department of General Services’ Agency Fiscal Officer.
Please feel free to contact me at (202) 727-2800 with any questions.
____________________________
Kristen Walp
Senior Assistant General Counsel
GOVERNMENT OF THE DISTRICT OF COLUMBIA
DEPARTMENT OF GENERAL SERVICES
er
BUILD= x * * atMAINTAIN aa‘SUSTAIN asa DC
Contracts & Procurement Division
VIA ELECTRONIC MAIL ONLY Brunson@corenic-cg.com
Date:5/16/2025BrunsonCooper,
PresidentandCEO,CorenicConstructionGroupLLC,1220 12th Street,SE Suite280,
Washington,DC 20003
Reference: RequestforProposals(“RFP”)No.DCAM-25-CS-RFP-0006
Design-BuildServicesforAdvancedTechnicalCenterPhase2
ExpansionatPennCenter
Subject: NoticetoProceedandLetterContract
DearMr.Cooper,
We refertotheproposalsubmittedbyCorenicConstructionGroupLLC(the“Contractor”or
“Design-Builder”)inresponsetotheabove-referencedRFP.We arepleasedtoinformyouthat
thisworkhasbeenawardedtoCorenicConstructionGroupLLCandifthislettercontract(“Letter
Contract”)issignedbytheContractorwithoutmodificationofanykind,itwillserveasanotice
toproceedwiththeworkdescribedbelow.Thisnoticetoproceedissubjecttothefollowingterms:
1. LetterContract.ThisisaLetterContractbetweentheContractorandtheDistrictof
ColumbiaGovernment,actingbyandthroughitsDepartmentofGeneralServices(“DGS”orthe
“Department”),andshallgovernourrelationshipuntilsuchtimeasafinalcontractisenteredinto
fortheworkdescribedintheabove-referencedRFP(the“DefinitizedContract");provided,
however,thattotheextentanissueisnotcoveredinthisLetterContract,theRFPshallgovern.
OncetheDefinitizedContractisexecutedbyanauthorizedContractingOfficer,thisLetter
Contractshallautomaticallybeincorporatedintoandshallmergeintoandbesupersededbythe
DefinitizedContract.
2. Scope of Work. The ContractorshallprovideDesign-BuildServicesforthe Advanced
TechnicalCenterPhase2ExpansionatPennCenter,locatedat1709ThirdStreetNE,Washington,
DC. 20002(the“Project”)asdescribedintheContractor’sProposaldatedFebruary6,2025,
submittedinresponsetothesubjectRFP.TheScheduleofValuesisattachedtothisLetterContract
as ExhibitA.
3. Deliverables.InconnectionwiththeservicesprovidedpursuanttothisLetterContract,the
Contractorshallprovide,ataminimum,thedeliverablesinaccordancewiththerequirementsin
theREP,theScheduleofValuesattachedtothisLetterContractasExhibitA,andFormof
ContracttotheDepartment'sProgramManagerandinthereferencedinstancestotheContracting
Officer.
IntheeventthattheContractorfailstosubmitanysuchdeliverabletimely,theContractorshall
paytotheDepartmentadisincentivefeeintheamountofSevenThousandFiveHundredDollars
($7,300.00)plusFiveHundredDollars($500.00)perdayafterreceivingwrittennoticefromthe
ContractingOfficeroffailuretosubmiteachdeliverable.Thisremedyiscumulativeanddoesnot
limitanyotherrightorremedyoftheDepartmentunderthecontractorapplicableDistrictlaw.
4. Not to Exceed Amount. The limitof thisauthorizationisup to $950,000.00(“Not to
Exceed” amount or“NTE”) including$128,180.00fortheConcept Design Fee,$223,663.00for
the Schematic Design Fee,$169,999.00forDesign Development Fee,$195,565.50forGeneral
ContractActivitiessuch as a portionof the Insurance,Payment and Performance Bonds, and
$50,000.00for a portionof the Allowances,$182,592.50 forAdditionalServiceActivities,as
furtherdescribedintheScheduleof theValues Exhibit A. In no event shalltheContractorbe
entitledtoreceivemore thantheNTE under thisLetterContractunlessauthorizedinadvanceand
inwritingby a dulyauthorizedContractingOfficer.This NTE includesallcostsincurredby the
Contractorinconnectionwiththework authorizedhereby.
5. ConstructionPhaseCompensation.TheContractorunderstandsandagreesthatthe
DepartmentmakesnorepresentationorwarrantythattheContractorshallbeentitledtoserveas
theDesign-BuilderfortheProject.If,however,theDepartmentandtheContractoragreeupona
GuaranteedMaximumPriceGMP") andschedulefortheProject,theContractorfurtheragrees
toenterintoadesign-buildagreementthatissubstantiallysimilartotheAgreementforDesign-
BuildServicesissuedwiththeRFP,subjectonlytosuchadjustmentsaswererequestedbythe
ContractorinitsbidandwhichareagreedtobytheDepartment.
6. Insurance,AtalltimeswhileworkingunderthisLetterContract,theContractorshall
maintaininsuranceasdescribedintheRFPandaCertificateofInsuranceasdescribedinExhibit
H.AllsuchpoliciesshallbeendorsedtoaddtheDistrictofColumbia,including,butnotlimited
to,itsDepartmentofGeneralServices,andtherespectiveagents,employees,andofficesofeach
asadditionalinsureds.TheContractormustmaintaininsuranceforalloftheirsubcontractors.
% Duration.Once signedby theContractor,theLetterContractwillbecome effectiveon the
datetheLetterContractisexecutedby theDepartment.This LetterContractwillterminateon the
earlierto occur of the following:(i)the date the DefinitizedContractbecomes effective;or
(ii)September 15,2025, DGS reservestherightto terminatethisLetterContract,inwhole or
specifiedpart,forconvenienceinthemanner describedinArticle5 and Article6 of theDistrict
ofColumbiaDepartmentofGeneralServicesStandardContractProvisionsGeneralProvisionsfor
ConstructionContractsExhibit B1 and Standard Contract Provisionsfor Architecturaland
EngineeringServicesContractExhibitB2.
8. Billing,AllinvoicesshallbesubmitteddirectlytotheDepartmentattheaddressspecified
in the RFP. Purchase Order numbers should be included in allfuture invoices and accounting
3924MinnesotaAvenueNE,5°FloorWashingtonDC20019|Telephone(202)727.2800|Fax(202)727-7283
records.Properlypreparedinvoiceswiththenecessarybackupshallbepaidwithinthirty(30)days
ofreceipt.InvoicesnotpaidbythatdateshallbearinterestinaccordancewiththeQuickPayment
Act.
9. KeyPersonnel.Tocarryoutitsduties,theDesign-Buildershallprovideatleastthekey
F(“KeyPersonnel”),whoshallcarryoutthefunctionsidentified
‘Amongotherthings,theKeyPersonnelshallinclude:
A -KeyPersonneloftheDesign-Builder:
The followingindividualsshallbe consideredkey personnel(“Key Personnel”)ofDesign Builder:
(i) ProjectManager;
(ii)Superintendent;(iii)ProjectExecutive;
(iv)ProjectEngineer.
B-KeyPersonneloftheDesign-Builder’sArchitect/Engineer
ThefollowingindividualsshallbeconsideredtheKeyPersonneloftheArchitect:
i, ProjectManager;ii, ProjectArchitect;iii, PrincipalinCharge;
iv._ LeadMechanicalEngineer;
ItiscontemplatedthattheseKeyPersonnelwillworkfromthedesignstage,purchasingand
throughoutthebulkofthefieldwork.TheDesign-Builder’sobligationtoprovideadequatestaffing
isnotlimitedtoprovidingtheKeyPersonnelbutisdeterminedbytheneedsoftheProject.Ifany
oftheKeyPersonnelbecomesunavailabletoperformservicesinconnectionwiththeLetter
Contractduetodeath,disability,orseparationfromtheemploymentoftheDesign-Builderorany
affiliateoftheDesign-Builder,thentheDesign-BuildershallpromptlynotifytheDepartment’s
ContractingOfficerandproposeareplacementacceptabletotheDepartment.TheDepartment
shallbeentitledtocompleteinformationbeforeapprovingsuchreplacement.Certainmembersof
theDesign-Builder’sKeyPersonnelshallbesubjecttoareplacementfeefortheirremovalor
reassignmentbytheDesign-Builder.
IftheDesign-BuilderreplacesoneofthekeypersonnellistedinExhibitFasbeingsubjecttoa
replacementfee,withoutthepriorwrittenconsentoftheDepartment,thentheDesign-Buildershall
paytheDepartment$25,000foreachreplacementasareplacementfeeandnotapenalty,to
reimbursetheDepartmentforitsadministrativecostsarisingfromtheDesign-Builder’sfailureto
providetheKeyPersonnel.Theforegoingreplacementfeeamountshallnotbarrecoveryofany
otherdamages, costs,or expenses other than the Department's internaladministrativecosts.
10. ProjectTeam.The Design-BuildershallutilizetheDepartment’scurrentproject
managementsoftware,ProjectTeam,tosubmitanyandallprojectdocumentationrequiredtobe
providedbytheDesign-BuilderfortheProject,including,butnotlimitedto:(i)requestsfor
information;(ii)submittals;(iii)meetingminutes;(iv)invoices/applicationsforpayment(full
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packageincludingallformsrequiredbyDGS);(v)certifiedpayrolls(inadditiontouploadvia
LCP Tracker);(vi)drawings and specifications;(vii)GMP and any Submissions thatrequire
approvalbytheCounciloftheDistrictofColumbia;(viii)punchlist;and(ix)otherproject
documents asmay be designatedby theDepartment.
ElectronicstorageandtransmissionofinformationviaProjectTeamsystemshallbecompliant
withtheprovisionsoftheDocumentSecuritysectionoftheseGeneralRequirements.
11. InvoiceSubmittal.TheContractorshallcreateandsubmitpaymentrequestsinan
electronicformatthroughtheDCVendorPortal,https://vendorportal.de.gov.TheContractorshall
submitproperinvoicesonamonthlybasis.Toconstituteaproperinvoice,theContractorshall
enterallrequiredinformationintothePortalafterselectingtheapplicablepurchaseordernumber
whichislistedontheContractor’sprofile.Properlypreparedinvoiceswiththenecessarybackup
shallbepaidwithinthirty(30)daysofreceipt.Invoicesnotpaidbythatdateshallbearinterestin
accordancewiththeQuickPaymentAct.Forassistancewiththeregistrationprocesscall(202)
741-5200orvisithttp://vendorportal.de.govtosubmitaninquiry.
12. PurchaseOrderNumber.ThisLetterContractwillbecomeeffectiveonthedatetheLetter
ContractisexecutedbytheDepartment.TheDepartment'sContracting& ProcurementDivision
willissueapurchaseordernumberandwillbesentinaseparatecover.Thatnumbershouldbe
includedinallfutureinvoicesandaccountingrecords.Intheeventthatyoudonotobtaina
purchaseordernumberpleasecontactMakiaEfimbaatmakia.efimba@de.govdirectlytoobtain
thisnumber.
13. OwnershipandUseofDocuments,Alldocumentsandworkproductspreparedbythe
ContractorshallbecomethepropertyoftheDepartmentuponthepaymentofinvoicessubmitted
under the LetterContract.
14, Trade Work/Site Control.Unless otherwisedirectedby the Department,the Contractor
shallnotperformanytradeworkortakecontrolofthesite.Anyauthorizationtoproceedwith
tradeworkwillincludeappropriateprovisionsrelatingtocompliancedocuments(firstsource
employmentagreement,DepartmentofSmallandLocalBusinessDevelopment(“DSLBD”)),
bonds, insurance,and safetyprocedures.At a minimum, however, the Department'sStandard
ContractProvisionsforConstructionshallapply.Inadditiontotherequirementssetforthinany
suchsubsequentauthorization,priortoexecutingthisLetterContract,theContractorshallprovide
theDepartment'sContractingOfficerwithcertificatesevidencinginsurance,a paymentand
performance bond having a penal valueequal to thethen value of theLetterContractand the
Contractor’sagreementofindemnity.IntheeventtheContractorfailstoprovidetheDepartment
with such certificatesof insurance,theagreement forindemnityor bond, the Department may
withholdanysubsequentpaymentuntilsuchdocumentsareprovided.
15. EntireAgreement:Modification,ThisLetterContract,alongwiththeStandardContract
Provisions,(ExhibitB2—Architectural& EngineeringServicesandExhibitB1—Construction
Services)supersedeallcontemporaneousorpriornegotiations,representations,courseofdealing,
oragreements,eitherwrittenororal.NomodificationstothisLetterContractshallbeeffective
againsttheDepartmentandunlessmadeinwritingsignedbytheDepartment.Notwithstandingthe
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provisionsof thisSection15,nothinghereinshalllimittheDepartment'sabilitytounilaterally
modify thisLetterContract.
16. DavisBaconActWageDeterminationandTitle29CFRPart5.5DavisBaconProvision.
TheContractoragreesthattheworkperformedunderthisLetterContractshallbesubjecttothe
DavisBaconWageDeterminationAct(40U.S.C.§§3142-3148)ExhibitC andTitle29Codeof
FederalRegulations(“CFR”)part5.5DavisBaconProvisionExhibitD ineffectatthetimeof
LetterContractexecutionbytheDepartment.
17. Living Wage Act. The Contractoragrees thatthe work performed under thisLetter
Contractshallbe subjecttotheLivingWage Act ineffectatthetimeof LetterContractexecution
bytheDepartment.Assuch,theContractoranditssubcontractorsshallcomplywiththewage
reportingrequirementsimposed by theactassetforthinExhibitG.
18.PerformanceAndPaymentBonds.TheContractoragreestopostapaymentandperformance
bondhavingapenalvalueequaltotheAgreementamountatthetimetheAgreementisexecuted.
TheDesign-Builderwillberequiredtopostanupdatedpaymentandperformancebondstoreflect
the GMP Amendment amount (Exhibit E).
19. CampaignFinanceReformAct.PriortotheexecutionofthisContract,theDesign-Builder
shallcompleteandsubmittotheDepartmentacompletedCampaignFinanceReformActSelf-
CertificationForm,ExhibitI,pursuanttoD.C.OfficialCode§ 1-1161.01.
20. NonprofitFairCompensation Actof 2020,D.C. Code § 2-222.01etseq.
20.1Nonprofitorganizations,asdefinedintheAct,shallincludeintheirratestheindirectcosts
incurredintheprovisionofgoodsorperformanceofservicesunderthiscontractpursuanttothe
nonprofitorganization'sunexpiredNegotiatedIndirectCostRateAgreement(NICRA).Ifa
nonprofitorganizationdoesnothaveanunexpiredNICRA,thenonprofitorganizationmayelect
toincludeinitsratesitsindirectcosts:
(1)As calculatedusinga de minimis rateof 10%of all directcostsunderthiscontract;
(2)Bynegotiatinganewpercentageindirectcostratewiththeawardingagency;
(3)Ascalculatedwiththesamepercentageindirectcostrateasthenonprofitorganization
negotiatedwithanyDistrictagencywithinthepast2years;however,anonprofitorganization
may requesttorenegotiateindirectcostsratesinaccordancewithSection20.2;or
(4)Ascalculatedwithapercentagerateandbaseamount,determinedbyacertifiedpublic
accountant,as defined in the Act, using the nonprofitorganization'sauditedfinancial
statementsfromtheimmediatelyprecedingfiscalyear,pursuanttotheOMB Uniform
Guidance,and certifiedinwritingby thecertifiedpublicaccountant.
20.2.Ifthiscontractisfundedbyafederalagency,indirectcostsshallbeconsistentwiththe
requirementsforpass-throughentitiesin2C.F.R.§ 200.331,oranysuccessorregulations.
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20.3 The Contractorshallpay itssubcontractorswhich are nonprofitorganizationsthe same
indirectcostratesas the nonprofitorganizationsubcontractorswould have receivedas a prime
contractor.
21,EqualEmploymentOpportunityandHiringofDistrictResidents.
TheContractorshallcomplywithapplicablelaws,regulations,andspecialrequirementsofthe
ContractDocumentsregardingequalemploymentopportunityandaffirmativeactionprograms.In
accordancewiththeDistrictofColumbiaAdministrativeIssuanceSystem,Mayor’sOrder85-85
datedJune10,1985.ExhibitJ.
22,ServiceContractAct.
TheContractoragreesthattheworkperformedunderthisLetterContractshallbesubjecttothe
ServiceContractActassetforthinExhibitK ineffectatthetimeofLetterContractexecutionby
theDepartment.
23,BuyAmericanAct.
TheContractorshallcomplywiththeprovisionsoftheBuyAmericanAct(41U.S.C.§§8301—
8305),including,butnotlimitedto,thepurchaseofsteel.Totheextentthatthelanguageinthis
sectioncontradictsthelanguageunderArticle24ofTheDepartmentStandardContractProvisions
forConstructionContracts(ExhibitB1)regardingcompliancewiththeBuyAmericanAct,the
languageinthissectionshouldsupersede.
23.1InaccordancewiththeBuyAmericanAct(41U.S.C.$§8301-8305),andExecutive
Order10582,December17,1954(3CFR,1954-58Comp.,p.230),asamendedbyExecutive
Order11051,September27,1962(3CFR,1059—63Comp.,p.635),theDesign-Builderagrees
thatonlydomesticconstructionmaterialwillbeusedbytheDesign-Builder,subcontractors,
materialmenandsuppliersintheperformanceoftheAgreement,exceptfornon-domesticmaterial
listedintheAgreement.
“Components”asusedinthisSection,meansthosearticles,materialsandsuppliesincorporated
directlyintotheendproducts.
“Domesticendproduct”,asusedinthissection,means,(1)anunmanufacturedend
productminedorproducedintheUnitedStates,or(2)anendproductmanufacturedintheUnited
States,ifthecostofitscomponentsmined,produced,ormanufacturedintheUnitedStates,
exceeds65percentofthecostofallitscomponents.Foranendproductthatconsistswhollyor
predominantlyofironorsteeloracombinationofboth,thecostofforeignironandsteelmust
constitutelessthan5percentofthecostofallthecomponentsusedintheendproduct.
Componentsofforeignoriginofthesameclassorkindastheproductsshallbetreatedas
domestic.Scrapgenerated,collected,andpreparedforprocessingintheUnitedStatesis
considereddomestic.
“EndProducts”,asusedinthisSection,meansthosearticles,materials,andsuppliesto
beacquiredforpublicuseunderthisContract.
3924MinnesotaAvenueNE,5®FloorWashingtonDC20019|Telephone(202)727.2800|Fax(202)727-7283
6/2/2025
Kianna Shepherd
Page 1
DESIGN-BUILD AGREEMENT
FOR
ADVANCED TECHNICAL CENTER PHASE 2 EXPANSION AT PENN CENTER
BY AND BETWEEN
THE DEPARTMENT OF GENERAL SERVICES
AND
CORENIC CONSTRUCTION GROUP, LLC
CONTRACT NUMBER: DCAM-25-CS-RFP-0006
Page 2
PROJECT INFORMATION
A. PROJECT SUMMARY
1. Project Name:
Design-Build Services for Advanced
Technical Center Phase 2 Expansion at
Penn Center
2. Project Address:
1709 Third St reet NE, Washington, DC ,
20002
3. Agreement Type: Design-Build with Guaranteed Maximum
Price
4. Client Agency: Office of the State Superintendent of
Education (“OSSE” or “Client Agency”)
5. Design-Builder: Corenic Construction Group, LLC
6. Agreement Amounts:
i. Initial NTE:
$6,808,979.50 - Inclusive of the letter
contract amount of $950,000 and Early
Start Agreement amount of $5,858,979.50
(see Early Start Schedule of Values
attached as Exhibit X)
ii. Project Budget:
$14,600,000.00
7. Design-Builder Compensation:
i. Design Fee (including Construction
Administration): $1,552,854.50
ii. Design-Build Fee: $338,481.00
iii. Lump Sum General Conditions Cost: $140,505.00
iv. Allowances (see Exhibit Z for
allowances included in the NTE
Amount):
a. Permit Allowance, $150,000.00;
b. Utility Allowance, $150,000.00; and
c. Exploratory/Existing Building and Site
Investigation Allowance, $50,000.00.
v. Contingency: To be determined at GMP
8. Liquidated Damages: $2,500.00 per day
9. Disincentive Fee for Failure to Timely
Submit Deliverables:
$7,500.00 plus $500.00 per day, per
deliverable
10. GMP Basis Project Documents
Submission Date: TBD
Page 3
11. Substantial Completion Date of Project:
October 16, 2026
12. Final Completion Date: December 14, 2026
13. Administrative Term Expiration Date: January 13, 2027
14. Letter Contract (if applicable):
Period of Performance:
From June 2, 2025 (date of execution of
Letter Contract), through September 15,
2025
NTE Amount: $950,000.00
15. GMP Basis Project Documents: Design Development Documents
Page 4
DESIGN-BUILD AGREEMENT
ADVANCED TECHNICAL CENTER PHASE 2 EXPANSION AT PENN
CENTER
DCAM-25-CS-RFP-0006
THIS AGREEMENT (“Agreement” or “Contract”) is made by and between the
DISTRICT OF COLUMBIA GOVERNMENT (the “District”), acting by and through its
DEPARTMENT OF GENERAL SERVICES (the “Department” or “DGS” or “Owner”),
and CORENIC CONSTRUCTION GROUP, LLC. a company duly organized under the
laws of the District of Columbia, and with a place of business at 1220 12TH STREET SE
WASHINGTON, DC 20003 (the “Design-Builder” or “Contractor” and collectively with the
Department, the “Parties”).
RECITALS
WHEREAS, the Department issued a R equest for P roposals (the “RFP”) dated
December 20, 2024, to engage a design- builder to prepare a design for and to construct and
complete the work at Advanced Technical Center Phase 2 Expansion at Penn Center (“ATC
P2”), located at 1709 Third Street NE, Washington, DC, 20002 (the “Project”); and
WHEREAS, the Department intends to implement the Project through a design- build
approach. The scope of work for the Project will be divided into two phases: (i) the design and
preconstruction phase; and (ii) the construction phase; and
WHEREAS, the Department requires that the Project be completed no later than
October 16, 2026 (the “Substantial Completion Date”); and
WHEREAS, the Design -Builder submitted a proposal entitled “ Proposal for Design-
Build Services for Advanced Technical Center Phase 2 Expansion at Penn Center – DCAM-
25-CS-RFP-0006,” dated February 6, 2025, and revised April 22, 2025, and an Early Start
Agreement Schedule of Values, dated June 9, 2025, to provide design- build services for the
Project; and
WHEREAS, the Department retained the Design -Builder to provide design- build
services for the Project , which is to include design, preconstruction, and construction,
administration services for ATC P2; and
WHEREAS, the Design- Builder will provide the architectural, engineering,
construction, and related services necessary to complete the Project, subject to the terms and
conditions set forth in this Agreement; and
WHEREAS, the Department has retained the services of a program manager (the
“Program Manager”) to advise it concerning the Project; and
WHEREAS, the Department has established a budget and the Design- Builder will
conduct its work in accordance with an underlying budget for the Project, which includes but
is not limited to all design fees, hard and soft construction costs, fees, general conditions of the
Design-Builder, and allowances, until achieving Final Completion (such budget, the “Project
Budget”); and
Page 5
WHEREAS, the Department and the Design-Builder entered into a letter contract dated
June 2, 2025 (the “Letter Contract”) pursuant to which the Design-Builder was authorized to
proceed with certain design, preconstruction, abatement, and demolition services in furtherance
of the Project (if applicable).
NOW, THEREFORE, the Department and Design -Builder, for the consideration set
forth herein, mutually agree as follows.
Page 6
DEFINITIONS
Section 1.1. Administrative Term.
The Agreement shall have an administrative term (the “Administrative Term”) that runs from
the effective date of the notice to proceed to the Administrative Term Date set forth in the
Project Information Section above. In addition, within this time the Design -Builder shall
execute and submit a Final Release of Liens and Claims in a form and format required by a
Contracting Officer (“CO” or “Contracting Officer ), inclusive of providing the Department
with a complete set of any product manuals ( “O&M”) and training videos, if applicable . The
Administrative Term is established for the sole purpose of permitting the Department’s Office
of the Chief Financial Officer to process payments in the event any payments become
due. Notwithstanding the foregoing, nothing herein shall be construed to extend the Substantial
Completion Date, extend the Final Completion Date, or limit the Department’s ability to assess
liquidated damages thereon.
Section 1.2. Agreement.
The terms “Agreement” or “Contract” shall mean this entire, integrated agreement between the
Department and the Design -Builder with respect to the Project, consisting of this document
and the Exhibits thereto, including but not limited to the Standard Contract Provisions
(Construction Contracts and Architectural/Engineering Services Contracts) , the construction
documents released for the Design-Builder’s use and any change orders, contract modifications
or change directives that have been executed by the Department.
Section 1.3. Client Agency.
The governmental or quasi-governmental entity, represented by the Department, requesting the
Project.
Section 1.4. Construction Documents.
The final Drawings and Specifications, as prepared, sealed by the Design -Builder’s architect
in accordance with the law, and issued by the Design-Builder for the purpose of obtaining bids
from potential trade subcontractors and material suppliers for use in constructing the Project.
Section 1.5. Construction Phase Services.
The services provided throughout the construction phase during which the Design-Builder shall
carry out the bulk of the construction and manage the completion of the design for the Project,
including construction administration services.
Section 1.6. Cost of General Conditions.
The Cost of General Conditions shall mean the lump sum amount the Design-Builder is entitled
to recover for general conditions and is further described in Section 9.2 of this Agreement.
Section 1.7. Contract Documents.
The term “Contract Project Doc ument(s)” refers to one or more components of the Project
documents that comprise the Agreement between the Department and the Design- Builder,
including any modifications or changes thereof, the drawings and specifications, and any
addenda to the RFP issued thereto.
Section 1.8. Design and Preconstruction Phase Services.
The services to be provided under Article 3 constitute the design & preconstruction phase
services to be performed by the Design-Builder.
Page 7
Section 1.9. Drawings.
The drawings are the graphic and pictorial portions of the Contract Project D ocuments,
wherever located and wherever issued, showing the design, locations , and dimensions of the
Work, generally including plans, elevations, sections, details, schedule, and diagrams.
Section 1.10. Final Completion.
The point at which Substantial Completion has been achieved, all punchlist items noted at
Substantial Completion have been completed and all Project documents the Design-Builder is
required to deliver to the Department as a condition to receiving final payment have been
delivered.
Section 1.11. Final Completion Date.
The date established in the Agreement by which the Design- Builder shall achieve Final
Completion. The Final Completion Date may be modified only by Change Order or Change
Directive in accordance with the Agreement.
Section 1.12. Fully Complete.
To undertake all of the Work necessary to fully construct and complete the Project and execute
all tasks necessary to obtain the final certificate of occupancy for the Project from the District
of Columbia, submit final lien releases from the Design -Builder and Subcontractors and
material suppliers, complete all punchlist items to the Department’s approval and sign-off, and
cause all representations, warranties, and guarantees to be honored and otherwise fulfill all of
the requirements set forth in the Agreement.
Section 1.13. Guaranteed Maximum Price or GMP.
The maximum amount, including, but not limited to, the design- build fee and the Cost of the
Work, that will be paid to the Design-Builder to Fully Complete the Project as set forth in
Article 4. The Guaranteed Maximum Price (“GMP”) may be modified only by Change Order,
Contract Modification, or Change Directive in accordance with the Agreement. The GMP shall
be established in the GMP Amendment.
Section 1.14. Hazardous Material.
Hazardous Material includes but is not limited to, a ny toxic substance or hazardous chemical
defined or regulated pursuant to federal, state , or local laws relating to pollution, treatment,
storage, or disposal of waste, or protection of human health or the environment. Such laws
include, without limitation, the Comprehensive Environmental Response , Compensation and
Liability Act, the Resource Conservation and Recovery Act, the Clean Water Act, the Clean
Air Act, and laws relating to emission, spills, leaks, discharges, releases, or threatened releases
of toxic material. The term Hazardous Materials shall also include petroleum and petroleum
by-products.
Section 1.15. Notice to Proceed.
A written notice to proceed, signed by the Department’s Contracting Officer, directing the
Design-Builder to proceed with the Project or any portion of the Project (“Notice to Proceed”
or “NTP”).
Section 1.16. Project Schedule.
The schedule for the Project (“Project Schedule”) is agreed upon by the Department and the
Design-Builder. Such schedule shall include a baseline schedule as updated periodically by
the Design-Builder, approved by the Department. The Project Schedule shall not be changed
except by a Contract Modification, Change Order or Change Directive issued by the
Department’s CO or Contracting Officer. The Project Schedule shall be in a form and contain
Page 8
such detail as may be agreed upon by the Parties.
Section 1.17. Self-Performed Work.
The parties hereby agree that “Self-Performed Work” means and shall encompass trade work
performed by employees of: (1) the Design-Builder; (2) any entity that is a partner or member
of the entity comprising the Design-Builder; (3) any entity that controls, is controlled by, or is
under common control with the Design- Builder; or (4) any entity that controls, is control led
by, or is under common control with any entity that is part of the Design- Builder. Self -
Performed Work is distinguished from trade work performed by subcontractors unaffiliated
with the Design-Builder or the entities of which the Design-Builder is comprised.
Section 1.18. Services.
The services to be provided pursuant to the Agreement which shall include the Design &
Preconstruction Phase Services and the Construction Phase Services necessary to deliver the
Project.
Section 1.19. Specifications.
The Specifications are that portion of the Contract Project documents consisting of the written
requirements for materials, equipment, construction systems, standards and workmanship for
the Work, and performance of related services.
Section 1.20. Standard Contract Provisions.
The District of Columbia Department of General Services Standard Contract Provisions,
General Provisions (Construction Contracts and Architectural/Engineering Services
Contracts), as amended, is attached hereto as Exhibit J and incorporated herein.
Section 1.21. Subcontractor.
Any person, natural or legal, to whom the Design- Builder delegates the performance of any
portion of the Work required by the Agreement. The term “Subcontractor,” used without a
qualifier, shall mean a subcontractor in direct contractual privity with the Design -Builder.
“Subcontractors at all tiers” shall mean not only those Subcontractors in direct contractual
privity with the Design -Builder and not the Department , but also those performing Work
pursuant to sub- subcontracts, and so on. “Subcontractors” shall include both those who are
retained to perform labor only and those who are retained both to perform labor and to supply
material or equipment. “Subcontractors” shall also include design professionals who are not
the Design-Builder’s employees and t o whom the Design- Builder delegates any part of its
responsibilities under the Agreement, except those references to “trade Subcontractors” shall
exclude design professionals.
Section 1.22. Substantial Completion.
Substantial Completion shall mean that all of the following have occurred: (1) the
preconstruction, construction and installation work have been completed with only minor
punchlist items remaining to be completed; (2) the Project has obtained a Department of
Buildings (“DOB”) Certificate of Occupancy, and the final DOB Certification of Occupancy
shall be received within thirty (30) days of Substantial Completion; (3) all other required
permits or approvals must have been obtained; ( 4) all Operation and Main tenance Manuals
have been finalized, submitted, and approved and must be submitted to the Department six
months prior to Substantial Completion; (5) required trainings per DGS Tern Over/Close Out
Manual have been scheduled within thirty (30) days of the Substantial Completion Date and
the Design-Builder shall provide final videotaped recordings within thirty (30) days of the
Substantial Completion Date; (6) Draft Warranties have been submitted and approved; (7) the
Project has obtained DC Department of Health approval of the kitchen and health suite; (8) the
Page 9
Project site has been deep cleaned and cleared of any debris; ( 9) the Project is ready for the
Department and Client Agency to use it for its intended purpose; (10) all equipment, supplies,
materials and items to be installed have been installed in accordance with the manufacturer’s
specifications and industry standards and have undergone and passed the requisite testing and
inspections; (11) the certificate of compliance with regulatory standards for all existing public
synthetic playgrounds, as required by D.C. Code § 10- 171.03 is submitted to the Department;
and (12) commissioning is complete, and a final punchlist is documented with completion dates
established. “Minor punchlist items” are defined for this purpose as items that, in the aggregate,
can be completed within sixty (60) days without interfering with the Department or Client
Agency’s normal use of the Project.
Section 1.23. Substantial Completion Date.
The date established herein by which the Design-Builder shall achieve Substantial Completion.
The Substantial Completion Date may be modified only by Change Order , Contract
Modification, or Change Directive in accordance with the Agreement.
Section 1.24. Work.
The term “Work” refers to any and all work done in the performance of the services
necessary, at any and all phases of the Agreement, to Fully Complete the Project.
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GENERAL PROVISIONS
Section 2.1. Letter Contract
The Parties acknowledge that certain of the investigation, design, and preconstruction activities
described in Article 3 of this Agreement were performed pursuant to the Letter Contract
between the P arties as described in the P roject Information Section of this A greement.
Pursuant to the terms of the Letter Contract, upon execution of this Agreement by the
Department (the “Agreement Effective Date”), the Letter Contract shall automatically be
incorporated into and shall merge into and be superseded by this Agreement. The Parties agree
that any services provided or work performed pursuant to the merged Letter Contract, and prior
to the Agreement effective Date, shall be governed by the terms and conditions of this
Agreement.
Section 2.2. Term and Termination
The period of performance under this Agreement shall commence from the date of execution
of the Contract by the Department, unless the Department executes a Letter Contract, in which
case the period shall commence from the execution of the Letter Contract, and shall terminate
upon the expiration of the Administrative Term or upon termination by the Department
pursuant to Articles 5 and 6 of the Standard Contract Provisions (Construction Contracts) and
Article 8 of the Standard Contract Provisions (Architect ural & Engineering Services
Contracts).
Section 2.3. Relationship of Parties.
The Design -Builder accepts the relationship of trust and confidence established with the
Department by this Agreement, and covenants with the Department to furnish the Design-
Builder’s reasonable skill and judgment and to cooperate with the Program Manager in
furthering the interests of the Department. The Design- Builder shall use its best efforts to
perform the Work and complete the Project in an expeditious and economical manner
consistent with the interests of the Department. The Department shall endeav or to promote
harmony and cooperation among the Department, Design- Builder, Program Manager, and
other persons or entities employed by the Department for the Project. In performing its duties
under this Agreement, the Design-Builder shall at all times use the standard of care used by
Design-Builders that construct projects similar to the Project in type, size , and scope in large,
urban areas. Whenever the term “competent” is used herein to describe the Design -Builder’s
actions or duties, that term shall re fer to the level of competence customarily possessed by
those Design-Builders that construct projects similar to the Project in type, size , and scope in
large, urban areas.
Section 2.4. Confidentiality of Information
The Design-Builder shall assure and keep all information and data obtained throughout the
performance of the Project whether related to the Agreement, the Work in all of its aspects, the
Department, and the Department’s employees confidential, during and following the term of
the Agreement and shall not use the information in connection with any other matters; nor shall
it disclose any such information to any other person, firm or corporation, unless disclosure is
required pursuant to a court order, subpoena or other regulatory authority. The Design-Builder
shall not be divulged of confidential information without the individual’s and the Department’s
written consent and only in accordance with District’s or Federal laws, codes and
regulations. The Design -Builder and any Subcontractors who utilize, access, or store
personally identifiable information as part of the performance of this Agreement are required
to safeguard this information and immediately notify the Department of any breach or
suspected breach in the security of such information. The Design- Builder and all
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Subcontractors shall allow the Department to both participate in the investigation of incidents
and exercise control over decisions regarding external reporting. The Design -Builder,
Subcontractors, and their respective employees working on this Project may be required to sign
a confidentiality statement.
Section 2.5. Project Description.
The Design-Builder shall provide design-build services required for the Advanced Technical
Center (ATC) Phase 2 Expansion at Penn Center located at 1709 Third Street NE, Washington,
DC, 20002. The Project includes design and construction services for ATC, which will be an
approximately 20,000 square foot (“SF”) renovation. The building will be occupied during the
construction period.
The Design-Builder shall design and renovate the first floor of the ATC - Penn Center location
to allow for partnerships with two healthcare providers and enable more students to be served.
Phase II includes building of a 10,000 SF additional education space and two (2) 5,000 SF
community clinics so that students can acquire real world experience to observe and learn.
The Penn Center was the former home of the Schlitz Brewing Company Washington
Branch/National Geographic Society Warehouse complex in Square 3574 and is on the
National Register of Historic Places in District of Columbia. The Penn Center comprises two
principal structures, the Schlitz Brewing Company bottling works (facing Randolph Place NE)
and the National Geographic Society Warehouse (facing Third and R Streets NE). The ATC
Phase 2 renovation will be located in The National Geographic section, which was constructed
in 1924, is a four -story, reinforced-concrete building with a one -story wing. The building’s
brick-faced façade has cut fieldstone on portions of its lower story. The complex is a composite
of these original buildings and its additions. The Schlitz section, constructed in 1907-1908, is
a two-story, brick walled, steel-frame and concrete-slab building. The complex is a composite
of these original buildings and its additions. Additions include two single -story connectors
between the buildings, the first constructed in 1913, and the second in 1937. An addition to the
east façade of the Schlitz plant dates to 1920.
Exhibits A1 through B5 provide further information on the existing building condition.
As part of the design process, the Design-Builder will work closely with the ATC leadership,
various Office of the State Superintendent of Education (“OSSE”) central office departments,
the Project’s school community, DGS, and the wider community to better understand the
community’s vision and the unique ATC culture.
Generally, the Design -Builder’s responsibilities shall include, but will not be limited to the
following:
a. To confirm the design and construction of the Project in accordance with the RFP
Documents, including all applicable attachments.
b. To provide all design, construction, and construction management services necessary
to implement the goals of the Project inclusive of, but not limited to, the following: (i)
civil, architectural, electrical, structural, low voltage, and mechanical design services
as required for the Project; and (ii) construction management services inclusive of
budgeting, value engineering (“Value Engineering”), scheduling, Project phasing,
Project administration, management, and coordination of subcontractors. Design scope
shall also include full design and specifications, with a minimum of two options for
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basis-of-design for each, of the Furniture, Fixtures, and Equipment (“FF&E”) for GMP
pricing.
c. To conduct existing building and site investigation work, including archeology, if and
as required for the Project.
d. To furnish and provide all materials, management, personnel, equipment, hazardous
material abatement, supervision, labor and other services necessary to complete the
Project.
e. To provide the necessary design, consultants and documentation for all permitting,
zoning, historic preservation, US Commission of Fine Arts approvals and National
Capital Planning Commissioning, as needed.
f. To provide move coordination and logistics support for the Project.
g. To complete the transition, installation, upgrades of the Enteliweb platform, an
electronic building automated control system.
h. Coordinate the design and construction with the Office of the Chief Technology
Officer (“OCTO”) team to bring the school to current standards.
i. To participate in regularly scheduled SIT and Community Meetings throughout the
design process.
j. If applicable, the Design -Builder shall obtain Chapter 2 and Chapter 3 air quality
permits from the Department of Energy and Environment (“DOEE”) prior to the
installation of a boiler, stationary generator, or any other source of emissions subject
to those rules.
The Design -Builder shall provide the Department with a GMP based on the Design
Development Documents. The D epartment anticipates an early start agreement (“ESA”) and
subsequent one GMP package. The process by which the GMP will be formed is more fully
described in this Agreement. Construction and construction administration services for early
authorized work may also occur.
During the Construction Phase, the Design- Builder shall construct the Project and provide
construction administration services. During the Construction Phase, the Design-Builder shall
be required to cause the Work to be completed in a manner consistent with the design
documents and phasing plan approved by the Department and shall provide all labor, materials,
insurance, bonds, and equipment necessary to fully complete the Project in accordance with
the drawings, specifications, Project S chedule, and Project B udget that are issued for the
Project. The Design- Builder shall be responsible for paying for and obtaining all necessary
permits and to pay all necessary fees for utility connections and the like.
2.5.1 Project Sustainability Requirements
The Project is required to meet all local and national codes including but not limited to DC
Energy Conservation, the DC Green Construction Code, the Green Building Act, etc. The
project will also be required to meet the recent amendment to the Green Building Act, the
Greener Government Building Amendment of 2022 which went into effect on March 10, 2023.
In addition to the required codes, the Project is required to meet the following:
2.5.1.1 LEED Requirements: The Project shall be designed in such a way to incorporate,
at a minimum, LEED for Schools – Gold. Evaluation will be required to determine if the
level of renovation qualifies for LEED certification. If the Project qualifies, the District will
require the innovation LEED Pilot Credit – Integrative Process for Health
Promotion(https://www.usgbc.org/credits/new-construction-core-and-shell-schools-new-
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construction-retail-new-construction-healthc-106.) The Design -Builder is responsible for
the application and execution of LEED requirements where applicable.
2.5.1.2 Net Zero Energy and Energy Consumption Requirements: In conjunction
with the Greener Governments Building Amendment Act Appendix Z Requirements, the
Department requires the Project to become an Onsite Net Zero energy building, meaning
renewables needed to offset building energy use must be provided on site, see section below
regarding solar readiness. The Department requires the Design-Builder to achieve net zero
strategies in the building’s design and certification through either the International Living
Future Institute’s (“ILFI”) Zero Energy Building program or U.S. Green Building
Council’s (“USGBC”) LEED Zero program. The Design-Builder shall make
recommendations on the most advantageous certification program to the District, but the
final determination of credentialing shall be made by the District. The Project shall achieve
an energy use intensity (“EUI”) of 20 units or less to meet the energy consumption goals
of the Project.
2.5.1.3 Stormwater Management: The Design-Builder is responsible for meeting all
Stormwater Management requirements within the bounds of the project site. Additionally,
the Design-Builder shall explore the possibility of the creation of Stormwater Retention
Credits through the Department of Energy and Environment (“ DOEE”) Stormwater
Retention Credit program. The Design- Builder is responsible for completing all the work
and documentation required for certification and final approval for Stormwater
Management facilities on the project.
Section 2.6. Program Manager.
The Department has engaged a Program Manager to provide certain program management
functions. Such Program Manager shall, at all times, be acting solely for the benefit of the
Department, not the Design-Builder. The Design-Builder hereby acknowledges and agrees that
only a duly authorized and designated Contracting Officer shall have the authority to direct the
Contractor to start the Project or to issue change orders, contract modifications , or change
directives on the Department’s behalf. The Project Manager and Contracting Officer’s
Technical Representative shall not have the authority to modify any of the rights and
obligations of the Department or the Contractor pursuant to the proposed Contract, or to issue
change orders, contract modifications, or change directives. As of the date that this Agreement
is executed, the Department’s duly authorizing Contracting Officer(s) is/are set forth in Exhibit
H.
Section 2.7. General Description of Design-Builder’s Duties.
Generally, the Design -Builder shall perform the services in a professional workmanlike
manner. The Design-Builder shall supply and furnish at the location where the Work is to be
performed all design service, labor, materials, equipment, tools, services, and supervision, and
shall bear all items of expense, necessary to complete and satisfactorily perform this
Agreement, except such items that the Department, in this Agreement, specifically agrees to
supply or furnish to or for the use of Design-Builder. Any labor, materials, equipment, tools,
services, or supervision not specifically described in this Agreement, but which may be fairly
implied as required thereby or necessary to properly complete the Work, shall be deemed
within the scope of work (“Scope of the Work” or “SOW”) and shall be provided by the
Design-Builder at Design-Builder’s sole expense.
The Design-Builder will be required to work with the Department and the Project stakeholders
through a collaborative design process to advance the programmatic Ed Specs to a fully
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realized Project in accordance with the available Project budget. The Design-Builder will be
required to: (1) engage in extensive pre -design and preconstruction efforts to ensure that the
design is developed in a manner consistent with the Department’s goals for the Project (e.g.,
programmatic, budgetary, schedule and quality); (2) to develop a comprehensive Project
phasing; (3) to solicit competitive trade bids for the construction work and to develop an
acceptable GMP and corresponding scope and schedule for the work; and (4) to implement the
requisite construction and other work necessary no later than the Substantial Completion Date.
The Design-Builder will be required to provide move coordination and logistics support. The
Design-Builder shall be responsible for all items of cost except for those items set forth in
Section 9.7 of this Agreement and will be required to provide a “turn- key” Project ready for
occupancy by OSSE.
Section 2.8. Warranties and Representations
a) All disclosures, representations, warranties, and certifications the Design -Builder
makes in its proposal in response to the RFP shall remain binding and in effect
throughout the term of the Agreement. The Design-Builder reaffirms that all such
disclosures, representations, warranties, and certifications are true and correct.
b) If any disclosure, representation, warranty or certification the Design-Builder has made
or makes pursuant to the RFP or the Agreement, including, without limitation,
representations concerning the Design-Builder’s construction or design experience and
qualifications, claims or litigation history or financial condition, is materially
inaccurate, that shall constitute a material breach of the Agreement, entitling the
Department to any and all available remedies.
c) The terms and conditions of this Section 2.8 shall apply during both the Design &
Preconstruction and Construction Phases.
Section 2.9. Responsibility for Agents and Contractors.
At all times and during both the Design & Preconstruction and Construction Phases, the
Design-Builder shall be responsible to the Department for any and all acts and omissions of
the Design -Builder’s agents, employees, Subcontractors, Sub- Subcontractors, m aterial
suppliers, laborers, and agents and employees of the Subcontractors, Sub- Subcontractors,
material suppliers, and laborers performing or supplying Work in connection with the Project.
Section 2.10 Building Information Modeling. Building Information Modeling (“BIM”) is
required to be used throughout the lifecycle of the Project, including all Project phases from
Project planning and concept design through construction, as -built, and into facilities
management. The BIM requirements are provided as Exhibit S. It is expected by the
Department that all team members are to be committed to the use of BIM in the Project, share
their ideas of BIM expertise with the team, provide BIM data as requested by other team
members, look for cost savings and schedule improvements during the entire Project duration,
and endeavor to leave as a legacy a fully updated, as-built, facility management ready building
information model.
DESIGN-BUILDER'S DESIGN & PRECONSTRUCTION SERVICES
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Section 3.1 Preconstruction Services.
During the Design and Preconstruction Phase, the Design- Builder, in consultation with the
Department, shall: (i) develop conceptual plan and cost estimates; (ii) develop a draft final
conceptual site plan/response and cost estimate; (iii) prepare and submit soft and hard copies
of the complete set of Schematic Design Documents; (iv) prepare and submit soft copies of the
50% Design Development Documents and budget, approximately halfway through the Design
Development phase as a progress set to the Departmen t; (v) prepare and submit soft and hard
copies of the complete set of Design Development Documents, Specifications and Design-
Builder’s cost estimate and schedule; (vi) prepare soft and hard copies of the complete set of
Construction Documents, Specifications and Design-Builder’s cost estimate and schedule; (vii)
review existing condition assessment and recommendation, and (viii) obtain all necessary
building permits to support the Project Schedule.
Without limiting the generality of the foregoing, during the Preconstruction Phase, the Design-
Builder shall: (i) work with its Architect and any design consultants to advance the design for
the Project in consultation with the Client Agency, the Department, and its Program Manager;
(ii) obtain bids from trade subcontractors to perform the work described in the Design
Development Documents and provide bid tabulations to the Department; (iii) engage in any
Value Engineering and scoping exercises necessary to return the cost of the work to the Project
Budget; (iv) engage in preconstruction activities, including identifying any long- lead items;
(v) develop a GMP proposal for the Project; and (vi) enter into a GMP for the Project.
Throughout the Design & Preconstruction Phase, the Design-Builder shall schedule and attend
regular meetings with the Department, the Program Manager, and the Design- Builder’s
Architect.
Section 3.1.1. Building System Assessment. If requested by the Department, within twenty-
eight (28) days after the Preconstruction NTP or Contract is issued, the Design- Builder shall
conduct an assessment report of the building systems and submit a written report to the
Department that assesses whether the existing building systems can accommodate the new
space or if additional systems need to be added as part of the renovation. Such report shall take
into consideration the nature of this Project and the proposed Educational Specifications. This
report shall assess all the building’s key systems, including, but not limited to, HVAC, kitchens,
roof, windows, electrical, lighting, audio visual equipment, intercom, fire alarms, and
plumbing.
Section 3.1.1.1 Baseline Schedule. Within fourteen (14) days after the Preconstruction
NTP or Contract is issued, the Design-Builder shall prepare and submit a Baseline Schedule
for the Project (the “Baseline Schedule”). The Baseline Schedule shall be subject to review
and approval by the Department, and the Design-Builder shall incorporate such adjustments
to the Baseline Schedule as may be reasonably requested by the Department. The Baseline
Schedule shall be prepared in a critical path method (“CPM”) in a sufficient level of detail
to permit the Department and the Design-Builder and any other affected parties to properly
plan the Project. The Baseline Schedule shall include but not be limited to the following
key milestones:
a. Building Systems Assessment Submission (within 28 days of NTP or Contract);
b. Construction Management Plan Submission (within 28 days of NTP or Contract);
c. Concept Design Submission (within 30 days of NTP or Contract);
d. Concept Design Department review period (7 days);
e. Early Start Agreement(s) Submission Date(s);
f. Schematic Design Submission (28 days);
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g. Schematic Design Department review period (14 days);
h. 50% Design Development Submission;
i. Design Development Submission;
j. Design Development Department review period (28 days);
k. GMP Submission Date;
l. Permit Submission(s)
m. Anticipated Permit approval(s);
n. Construction Document Submission;
o. Construction Document review Period (21Days);
p. Release dates for the key subcontractors and long- lead materials, include the
following, if applicable:
a. Elevator(s);
b. Switchgear;
c. Transformer;
d. Generator;
e. Security cameras;
f. Door hardware;
g. Playground equipment;
h. Kitchen equipment;
i. Furniture;
j. Windows, storefront, and curtainwall;
k. Specialty Lighting; and
l. Mechanical Equipment.
q. Excavation completion for new building entrance on R street;
r. Utility Work to include tie in of seven (7) new PEPCO feeder lines and a new 8”
water line;
s. Above-grade structure completion of retaining wall at new R Street entrance;
t. O&M final submission (required 6 months before Substantial Completion);
u. Temporary weather-tight completion;
v. Weather-tight completion;
w. Permanent power completion;
x. MEP systems operational;
y. Sitework completion;
z. Building trade inspections, include the following trades:
a. Elevator;
a. Plumbing;
b. Mechanical;
c. Electrical;
d. Fire Alarm; and
e. Sprinkler.
aa. Final building inspection;
bb. DOB COO application review period (10 days);
cc. Conditional or Final Certificate of Occupancy (CC of O/final C of O) obtained;
dd. Staff Move-in for Educational Space (1 week beyond CC of O); and
ee. Student Move-in for Clinic Spaces (1 week beyond final C of O).
The Baseline Schedule shall include durations and logic ties for those building systems that
the Design-Builder is recommending for replacement. The Baseline Schedule must also be
submitted in Primavera 6 native format and shall be updated by the Design- Builder, at a
minimum, monthly.
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The Design-Builder shall work with DGS and OSSE to create a design review schedule
that works with the schedule of ATC. All required review shall be within the active months
of school operations whenever possible and avoid reviews during summer, winter, and
spring breaks. Review periods cannot be completed without input from OSSE and ATC .
DGS shall be notified of any changes of design milestone submission schedules at least two
(2) weeks prior to the submission date to accommodate for OSSE Meeting scheduling.
The Project schedule is attached hereto as Exhibit B6.
Section 3. 1.1.2 Concept Design . No later than eighteen (18) weeks after the
Preconstruction NTP or Contract is issued, the Design-Builder shall prepare and submit a
proposed concept design. As part of the concept design phase, the Department requests
three (3) concept options or alternatives. Each of the concept designs shall contain at least
the level of detail to provide legibility of individual programmatic spaces and provided a
Plan-to-Program study of square footages for each space noted in the building program. The
design submittal shall specifically identify any deviations from the building program and
shall explain the rationale and cost implications associated with such deviation. The
Department shall have the right to disapprove the concept design submittal for any reason.
Following review of the concept design submissions by OSSE and the Department, the
Department shall approve a final concept design. The Design-Builder shall revise the
concept design submission as necessary to incorporate comments, feedback and other
direction provided by OSSE and the Department. The Design-Builder’s pricing shall
assume that such revisions will be required, and such revisions shall not entitle the Design-
Builder to additional compensation. The requirements for Concept Design are as referenced
in Exhibit A1. A checklist verifying all requirements are met using Exhibit A1 shall be
provided as a coversheet for the Concept Design submission to the Department.
Section 3.1.1.3 Preliminary Budget Estimate. Concurrently with the delivery of the
concept design, the Design- Builder shall submit a detailed cost estimate of the proposed
design (such estimate, the “Preliminary Budget Estimate”). With regard to building systems
(i.e. roofs, doors, HVAC, security, IT, etc.), the Preliminary Budget Estimate shall be
prepared on a “system” basis that identifies the key building systems or functions and
allocates an estimated cost for each such system. The Design-Build Fee, the general
conditions cost, and contingencies shall be broken out in separate line items. The primary
purpose of the Preliminary Budget Estimate is to aid the Department and the Client Agency
in understanding the costs associated with key elements of the Project to better prioritize
and manage the use of the funding allocated to this Project. All estimates shall be broken
out into three categories: renovation, new construction, and site work, where applicable.
Section 3.1.1.4 Baseline Budget and Program. The Department shall provide the Design-
Builder with a baseline budget and program and comments on the concept design. Such
approval shall be provided (or signed by) the Department’s Deputy Director for Capital
Construction (the “Deputy Director”). In the event the Design-Builder does not receive
such approval within fourteen (14) days after submitting the Preliminary Budget Estimate,
it shall so advise the Program Manager (“PM”), the Deputy Director, and the Contracting
Officer in writing of such failure and request direction. If the Design- Builder fails to
provide such notice, the Design- Builder will be proceeding at its own risk and will be
responsible for any redesign costs associated with budget revisions.
Section 3.1.1.5 Construction Management Plan. The Design -Builder shall submit a
draft of its construction management and project phasing plan (“Construction Management
Page 18
Plan”) within fourteen (14) days after the Preconstruction NTP or Contract is issued to
include, but is not limited to, noise control, hours for construction and deliveries, truck
routes, trash and debris removal plan, traffic and parking control, communications
procedures, emergency procedures, quality control procedures, dust control, public street
cleaning and repair, planned occupancy of public ways, erosion control, tree protection
plan, vibration monitoring, existing and adjacent building surveys plan , temporary fire
protection measures, Project signage, pest control, construction staging plan, and
construction logistics plan.
Section 3.1.1.6 Disincentive Fee for Failure to Timely Provide Deliverables . The
Design-Builder acknowledges that the Department is engaging the Design- Builder to
provide an extensive level of preconstruction support services to minimize the potential for
cost overruns, schedule delays, or the need for extensive Value Engineering/re-design late
in the Project and that the deliverables required under this Section 3.1 are key to identify
the value of such services. In the event the Design -Builder fails to deliver any of the
deliverables required in Section 3.1 (and unless such failur e is the result of any event of
Force Majeure), the Design-Builder shall be subject to a disincentive fee in the amount of
Seven Thousand Five Hundred Dollars ($7,500.00) plus Five Hundred Dollars ($500) per
day after receiving written notice from the CO of failure to submit such deliverables.
Section 3.1.1.7 Additional Preconstruction Services. In addition to those items
enumerated above, the Design -Builder shall provide such preconstruction services as are
necessary to properly advance the Project. These services shall include, but are not limited
to, scheduling, estimating, shop-drawings, the ordering of long- lead materials, condition
assessments, conservator studies, archeological studies, recommended testing, additional
geotechnical testing, and monitoring of historic assets.
Section 3.1.2 (Reserved)
Section 3.1.3 Design Services; Design Reviews.
The Design -Builder shall meet with the representatives of the Department and OSSE
throughout the Design & Preconstruction Phase as the design progresses in order that these
representatives and other stakeholders can have input in and approve the design direction at
appropriate times. Meeting topics will include, but are not limited to, Site Design, Interior
Design, Hardware and Security, FE&E, Finishes, etc. At each deliverable review period the
Design-Builder shall participate in the Community and Public Engagement meetings and
departmental reviews with several OSSE and DGS department reviews. The Design -Builder
will be provi ded with written comments at deliverables and are required to provide written
responses within twenty-one (21) days of the comments being provided. The Design- Builder
shall ensure that the design is developed in a manner consistent with the Project budget, i.e.,
designed-to-budget, as well as the programmatic requirements set forth and attached hereto
as Exhibit A2 and the Department’s other requirements for the Project. All Design Documents
shall be prepared by the Design- Builder’s duly licensed architects and engineers. The GMP
basis documents and all interim design submissions shall be subject to review and approval by
the Department, and the Design-Builder shall be required to revise these Project documents to
address concerns raised by the Department and/or other Project stakeholders and such revisions
shall not entitle the Design-Builder to an increase in the Design Fee.
Section 3.1.3.1 Design Management. During the Design and Preconstruction Phase,
the Design-Builder, in consultation with the Department, shall : (i) develop Concept
Design Submission and cost estimates; (ii) develop a draft final conceptual site
Page 19
plan/response and cost estimate; (iii) prepare and submit soft and hard copies of the
complete set of Schematic Design Documents; (iv) prepare and submit soft copies of
the 50% Design Development Documents and budget, approximately half way through
the Design Development phase as progress set to the Department; (v) prepare and
submit soft and hard copies of the complete set of Design Development Documents,
Specifications and Design-Builder’s cost estimate and schedule; (vi) prepare soft and
hard copies of the complete set of Construction Documents, Specifications and Design-
Builder’s cost estimate and schedule; (vii) review existing condition assessment and
recommendation; and (viii) obtain all necessary building permits to support the Project
Schedule.
Without limiting the generality of the foregoing, during the Preconstruction Phase, the
Design-Builder shall: (i) work with its Architect and any design consultants to advance
the design for the Project in consultation with the Client Agency, the Department, and
its Program Manager; (ii) obtain bids from trade subcontractors to perform the work
described in the Design Development Documents and provide bid tabulations to the
Department; (iii) engage in any Value Engineering and scoping exercises necessary to
return the cost of the work to the Project Budget; (iv) engage in preconstruction
activities, including identifying any long-lead items; (v) develop a GMP proposal for
the Project; and (vi) enter into a GMP for the Project. Throughout the Design &
Preconstruction Phase, the Design -Builder shall schedule and attend regular meetings
with the Department, the Program Manager, and the Design-Builder’s Architect.
Between the time the Preconstruction NTP is issued and the time the GMP is accepted
by the Department, the Design-Builder shall use commercially reasonable best efforts
to ensure that: (i) the design evolves in a manner that is consistent with the
Department’s budget and programmatic requirements, as the same were defined and
established by the Department at the end of the concept design; (ii) the design work is
properly coordinated; and (iii) the required design deliverables are produced on or
before the dates contemplated in the Project Schedule. As part of this undertaking, the
Design-Builder shall provide the following:
Section 3.1.3.1.1 Schematic Design . The Design -Builder shall prepare a schematic
design for the Project that is a logical development of the approved concept design and
is consistent with the Department’s schedule, budget, and programmatic requirements.
The schematic design shall contain at least the level of detail contemplated in industry
best practices for a schematic design. The design submittal shall specifically identify
any deviations from the approved concept design and shall explain the rationale, cost,
and time implications associated with such deviation. The Department shall have the
right to disapprove the schematic design submittal for any reason.
Following a review of the schematic design submission by OSSE and the Department,
the Design -Builder shall make revisions to the schematic design submission as
necessary to incorporate comments, feedback, and other direction provided by OSSE
and the Department. The Design-Builder’s pricing shall assume that such revisions will
be required, and such revisions shall not entitle the Design- Builder to additional
compensation. The requirements and tasks for the Schematic Design are as referenced
in Concept Desi gn, Schematic Design, and Design Development Milestone
Requirements Exhibit A1.
Section 3 .1.3.1.2 Operations and Maintenance Plan . The Design- Builder shall
submit a Maintenance and Operations Plan, which, at a minimum, shall include the
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following:
i) Standard Operating Procedures (“SOP”) for all building systems, including, but
not limited to, electrical, mechanical, roof, green roof, geothermal, solar,
plumbing, security, outdoor fields, irrigation, landscaping and lighting;
ii) List of equipment that must be kept on-site to maintain all building systems;
iii) List of chemicals that must be kept on -site to maintain all building systems,
including storage requirements;
iv) Certifications and licenses either required or recommended to maintain all
building systems;
v) Confined space procedures and personal protective equipment that must be
used;
vi) Permits and regular inspections that are required to operate the equipment;
vii) List of hardware, software and software licenses that must be purchased and
maintained;
viii) Recurring trainings on building systems and safety that are necessary to
maintain the building;
ix) The estimated initial and monthly costs for the successful maintenance and
operations of the facility.
Section 3.1.3.1.3 Schematic Budget Update . Concurrent with submission of the
schematic design, the Design-Builder shall submit a budget update. The budget update
shall be submitted in the same format as the preliminary budget estimate and shall show
variations from the preliminary budget estimate. The Design-Builder shall include a
cost estimate and value engineering analysis and detailed recommendations for Project
savings (even if the Project is not over budget). To the extent the budget update shows
an overrun from the approved budget, the Design- Builder shall submit value
engineering (not scope reductions, but true value engineering that allows the design to
meet all Project requirements within budget) suggestions that would return the Project
to budget. Only the Department shall have the authority to increase the Project budget,
and absent such direction, the Deign-Builder shall proceed on the assumption that the
budget remains as originally directed by the Department.
Section 3.1.3.1.4 Constructability/Sole Source/Long-Lead Time Memorandum.
Concurrently with the Schematic Design Budget Estimate, the Design- Builder shall
prepare a memorandum identifying key construction concerns related to the Project.
Such memorandum shall: (i) assess the constructability issues related to the Project,
including site logistics; (ii) identify any items where the design is predicated on a
single manufacturer and, if so, identify at least two (2) comparable products; and
(iii) identify any long-lead delivery items that could adversely affect the schedule
contemplated in this RFP. To the extent any such long- lead items are identified, the
memorandum shall make recommendations for addressing such items.
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Section 3.1.3.1.4.1 Early Start Work & Long Lead Materials. The Department may
release the Design-Builder to commence Early Start Work including but not limited to
hazardous material abatement, interior demolition, geothermal, below grade work,
utility work, utility upgrades and related scope, or other early act ivities, as applicable.
It is envisioned that this work may be released by the Department in advance of the
GMP.
If the Design-Builder believes an earlier release is required in order to meet the Project
Schedule, it shall advise the Department and make a recommendation as to the
requested release date. Any decision to authorize an early start shall be made by the
Department in its sole and absolute discretion.
Section 3.1.3.1.5 Entitlements. The Design-Builder shall prepare, as part of the design
and pre -construction phase, such materials and make such presentations as are
necessary to obtain the required land use and entitlement approvals. Approvals may be
required from but not limited to: (i) the Office of Zoning ; (ii) the Office of Planning
(“OP”); (iii) the State Historic Preservation Office (“SHPO”); (iv) the National Capital
Planning Commission (“NCPC”); and (iv) the Commission of Fine Arts (“CFA”).
Section 3.1.4 Design Development Phase & Early Release Packages.
The Design-Builder shall prepare a set of Design Development Documents that is a logical
development of the approved schematic design and is consistent with the Department’s
schedule, budget and programmatic requirements. Prior to the full Design Development
Submission, the Design-Builder shall submit a progress set of drawings, specifications, and
budget at the halfway point through the Design-Builder’s Design Development phase. The final
Design Development Documents shall contain at least the level of det ail contemplated in
industry best practices for Design Development Documents. The design submittal shall
specifically identify any deviations from the approved schematic design and shall explain the
rationale and cost implications associated with such deviation. The Design- Builder shall
include a cost estimate and Value Engineering Analysis and Detailed Recommendation for
Project savings (even if the P roject is not over budget). The Design- Builder shall provide
maintenance and repair cost services, which in clude conducting a 40- year life cycle cost
analysis, which includes a detailed list of replacement costs, maintenance costs, an estimate of
repair costs, anticipated energy costs, and a list of other relevant life cycle costs. The Design-
Builder shall further r efine and expand upon the Maintenance and Operations Plan that was
submitted in the Schematic Submission. The Department shall have the right to disapprove the
Design Development Documents submittal for any reason.
Section 3.1.4.1 Design Development Submission. The Design -Builder shall prepare
the design development submission for review and comment by the Client Agencies
and the Department. Such design development submission shall include the elements
and information as specified in Concept Design, Schematic Design, Design
Development Milestone Requirements Exhibit A1.
Section 3.1.4.2 Early Release Packages / Long Lead Materials /Abatement &
Demolition.
Section 3.1.4.2.1 Abatement & Selective Demolition. Once the concept design has been
approved, the Department may release the Design -Builder to commence hazardous
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material abatement and interior demolition, or other early activities, as applicable. It is
envisioned that this work may be released in advance of the GMP.
Section 3.1.4.2.2 Long Lead Materials. The Department will release funding for long-
lead items once the Schematic Design Documents have been approved. If the Design-
Builder believes an earlier release is required in order to meet the Project Schedule, it
shall advise the Department and make a recommendation as to the requested release date.
Any decision to authorize an early start shall be made by the Department in its sole and
absolute discretion.
Section 3.1.4.2.3 Permits. The Design-Builder shall be responsible for preparing and
submitting all of the required permit applications that are necessary to complete the
Project. The Design-Builder shall develop a list of the required permits and shall track
the progress of all such permits through the review process. The Design-Builder shall
update the Department with the status of each permit that is required for the Project.
The Design-Builder shall engage such permit expediters as the Design-Builder deems
necessary or appropriate in light of the Project’s schedule. The Design- Builder shall
provide the resources necessary to support these requirements. If applicable, the
Design-Builder shall obtain Chapter 2 and Chapter 3 air quality permits from the
DOEE prior to the installation of a boiler, stationary generator, or any other source of
emissions subject to those rules.
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Article 4 - FORMATION OF GMP PROPOSAL
Section 4.1. General.
During the Design & Preconstruction Phase, the Design- Builder shall cause the Design -
Builder’s Architect to prepare the GMP Basis Project Documents. Based upon the GMP Basis
Project Documents, the Design- Builder shall propose a GMP (referred to as the “GMP
Proposal”) which shall be submitted in accordance with this Article. The Design- Builder
acknowledges and understands that the GMP Basis Project Documents will be incomplete at
the time it submits its GMP Proposal. Although complete construction Project Documents will
not be available and many details will not be shown on GMP Basis Project Documents or will
otherwise need to be adjusted, the GMP proposed in the Design-Builder’s GMP Proposal shall
be intended to represent the Design-Builder’s offer for the Final Completion of the Project. If
the Design-Builder’s GMP Proposal is acceptable to the Department, it shall be memorialized
in the form of an amendment to this Agreement (such amendment, the “GMP Amendment”).
Such amendment shall be in the form of Exhibit L attached hereto.
As part of the GMP Amendment, the Design- Builder shall certify that the GMP established
thereby: (i) contains sufficient amounts to perform all Work necessary for the Final Completion
of the Project; and (ii) contains sufficient amounts to provide and construct any items or
facilities that are not contained in the GMP Basis Project Documents, but which are necessary
for a fully functioning facility that meets the programmatic requirements established for the
Project. The Design-Builder will further covenant and agree in the GMP Amendment that it
will perform all of the construction work necessary for the Final Completion of the Project,
including, without limitation, aspects of the Work that are not shown on the GMP Basis Project
Documents, but which are a logical development of the design intent reflected in the GMP
Basis Project Documents, for an amount not to exceed the GMP.
Section 4.2 Review of GMP Basis Project Documents.
The Department has selected the Design-Builder, in large part, because of its special expertise
in constructing similar projects. Before submitting its GMP , the Design-Builder shall review
the GMP Basis Project Documents for accuracy, constructability, and completeness and shall
bring such deficiencies to the attention of the Department and shall cause its Architect to
address any such deficiencies. To the extent that any such deficiencies in the GMP Basis
Project Documents could have been identified by such review by a competent Design-Builder,
such deficiencies shall not be the basis for a change in the GMP or delaying the Project
Schedule.
Section 4.3 Contingency.
The Cost of the Work shall include a contingency, which shall be a sum established by the
Department and the Design-Builder to cover, among other things costs necessary to address
scope expansion that is a logical development of the design, issues arising from or as a result
of deficiencies in the GMP Basis Project Documents and other costs which are properly
reimbursable as Cost of the Work but not the basis for a Change Order, such as costs that were
not reasonably foreseeable as of the effective date of this Agreement, including such items as
emergencies, unforeseeable changes in market conditions for materials or labor, or subsurface,
soils or site conditions that were neither known nor reasonably discoverable as of the effective
date of the Agreement (the “Contingency”). During the Construction Phase, the Design-
Builder shall keep the Program Manager and the Contracting Officer informed as to the status
of the Contingency and shall, at a minimum: (i) advise the Program Manager and Contracting
Officer when draws reach 3% upon the contingency in a timely manager ; and (ii) provide the
Page 24
Program Manager and Contracting Officer with running status of the Contingency balance at
least once every two (2) weeks.
Section 4.4 Trade Bids.
Section 4.4.1 Subcontractors and Suppliers; Bidding Procedures. During the Design &
Preconstruction Phase, the Design-Builder shall seek to develop subcontractor interest in the
Project. At the time of the completion of the schematic design, the Design-Builder shall provide
to the Department for its review and approval a written submission on the proposed bidding
procedures. Such procedures shall include: (i) a list of proposed trade packages; (ii) a list of
trade subcontractors that will be invited to bid on each such package; and (iii) a narrative
description of the process. At least three (3) potential subcontractors shall be identified for each
trade package. A copy of this deliverable must be submitted to both the Program Manager and
the Contracting Officer. In the event the Department does not approve the proposed bidding
procedures within fifteen (15) days after its receipt, such procedures shall be deemed approved
unless the Department advises that such is still under review.
Section 4.4.2 Manage Bidding Process. Following the Department’s approval of the Design
Development Documents , the Design- Builder shall manage the trade bidding process in
accordance with the approved bidding procedures and shall use commercially reasonable best
efforts to solicit at least three (3) qualified and bona fide bids for each trade package that has
an expected value in excess of One Hundred Thousand Dollars ($100,000). Trade packages
shall not be parceled, split or divided to avoid the $100,000 threshold. In the event that the
Design-Builder submits a bid to self-perform any trade, a qualified fourth bid must be provided,
see Sections1.17 and 4.4.3 regarding self -performed work. In addition to the information
normally required in such bids, the Design-Builder shall also require subcontractors to provide
an estimate of the percentage of labor hours performed in completing the subcontracted work
that will be performed by District residents. The Design- Builder shall carefully document its
procedures for making available bid packages t o potential bidders, the contents of each bid
package, discussions with bidders at any pre -bid meetings, bidders’ compliance with bid
requirements, all bids received, the Design- Builder’s evaluations of all bids, and the basis for
the Design-Builder’s recommendation as to which bidders should be chosen. The Department
shall be afforded access to all such records at all reasonable times so that, among other things,
it may independently confirm the Design-Builder’s adherence to all requirements set forth in
the Agreement, including, without limitation, affirmative action requirements and
subcontracting requirements.
Section 4.4.3 Self-Performed Work. The Design-Builder and its affiliates may not carry out
trade work with its own forces without the Department’s written permission, for which
permission may be withheld or conditioned by the Department in its sole and absolute
judgment.
Section 4.4.4 Bid Tab. The Design-Builder shall provide the Department with an analysis of
the bids received and a copy of each such bid. To the extent that the Design- Builder’s award
recommendation is based on scoping adjustments, the Design-Builder shall clearly identify the
scoping adjustment and the need for such adjustments. In general, the bid tab shall be presented
in tabular format that compares the bids received based on the comparative scope of work and
any other relevant information (i.e. exclusions, past performance history, etc.).
Section 4.5 Value Engineering.
Based on the trade bids received, the Design-Builder shall prepare a written report of suggested
Page 25
Value Engineering strategies necessary to reconcile the costs of constructing the Project
Budget, if necessary. The Design-Builder shall meet with the Department’s representatives to
discuss any V alue Engineering and changes in the scope necessary to ensure that the
Department’s schedule and programmatic requirements are met and that the budget is not
exceeded. The Design -Builder shall cause the Design -Builder’s Architect to implement and
price any approved Value Engineering strategies.
Section 4.6 Basis of Guaranteed Maximum Price.
Based on the trade bids, the Design- Builder shall submit a GMP proposal to the Department.
The GMP Proposal shall include the following elements:
a) A list of drawings, specifications, addenda, general, supplementary, and other
conditions on which the GMP is based.
b) A list of unit prices and allowance items and a statement of their basis. The Design -
Builder shall include the following allowances: Permit Allowance ($ 150,000.00),
Utility Allowance ($ 150,000.00), and Exploratory/Existing Building and Site
Investigation Allowance ($50,000.00).
c) Assumptions and clarifications made in preparing the GMP Proposal, noting in
particular any exclusions. The assumptions and clarifications shall take precedence
over the drawings and specifications. The Design-Builder shall prepare a separate
memorandum that highlights any differences between the then-approved drawings and
the modifications made in the assumptions and clarifications (Exhibit W ). Such
memorandum shall specifically address any changes in the Project aesthetics,
functionality, or performance.
d) The proposed GMP, including a statement of the detailed cost estimate organized by
trade categories, allowances, contingency, and other items and the fees that comprise
the GMP.
e) An update to the Project’s schedule to which the Design-Builder will agree to be bound.
This update shall be prepared in the same level of detail and in the same manner as the
Baseline Schedule, and without any change to the Substantial and Final Completion
Dates unless approved by the Department’s Contracting Officer.
f) A subcontracting plan setting forth the names and estimated dollar volume of the work
that will be performed by Local, Small, and Disadvantaged Business Enterprises
(“LSBDEs”), as certified by the Department of Small and Local Business Development
(“DSLBD”), upon which the GMP is based.
g) A summary of Capital Cost vs Operating Cost Eligibility.
h) A list of additive alternates or deductive alternates with defined executable dates, if
any.
i) GMP and any Council Package cost estimate summary shall be broken down into three
categories as applicable: New Construction, Renovation, and Sitework. A separate
summary shall be provided that notates any previous contract approval such as the letter
contract or any early start agreements.
j) A list of all active contracts that the vendor holds with the District.
k) Campaign Finance Reform Act, Contractor Self-Certification Form.
l) Each GMP may include an agreed upon sum as the Design-Builder’s Contingency and
the Owner contingency, each of which shall be identified as a separate line item in the
GMP's Schedule of Values.
A. Construction contingency
i. The Design-Builder’s Contingency shall be utilized to compensate for
the increased cost of the Work incurred by the Design-Builder due to unforeseen
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circumstances relating to construction of that Project which resulted in an
unavoidable increase in costs, except when deemed the responsibility of the
Department in accordance with this Contract. If the Design-Builder fails to
include all of the required scope of work in the bid packages, Design- Builder
Contingency may be used to purchase the omitted scope, until the Design-
Builder’s Contingency balance reaches zero or until the balance equals the
anticipated subcontractor modifications. All requests to use the Design-
Builder’s Contingency shall be submitted as a Request for Change Order
("RCO"). Charges to the Design-Builder’s Contingency shall not become due
and payable until the RCO is approved in writing by the Department’s
Contracting Officer and becomes a Change Order. If the Design -Builder’s
Contingency reaches zero, any cost overruns or charges that could have been
charged to the Design-Builder’s Contingency shall be the sole responsibility of
the Design-Builder.
ii. If bids are received below the applicable line items in the GMP, the
surplus will be added to the Design- Builder’s Contingency for that Project. If
bids exceed the applicable line items in a GMP, the deficiency will be charged
to the Design-Builder’s Contingency for that Project, however, such events shall
not be caused to increase the GMP.
iii. Once all subcontracts anticipated by a GMP have been awarded,
including any self -performed work, the Department may require the Design-
Builder to reduce the Design-Builder’s Contingency to an amount as agreed to
by the parties to reflect the Design-Builder’s risk from that point in the Project
forward.
iv. Upon Final Completion of the Project, any remaining Design-Builder’s
Contingency, if any, shall be reduced to zero by a Contract Modification and
the Design-Builder shall have no entitlement to the balance.
B. Owner Contingency/Allowance(s)
i. The Department retains the right to increase the GMP in lieu of charging
any cost to the Department’s Contingency. Any unused Contingency, whether
Department Contingency or the Design-Builder Contingency, shall be
reconciled to a zero balance via a Contract Modification upon Final Completion.
ii. When the Design -Builder proposes to use the Department’s
Contingency, the Design-Builder shall prepare an RCO, identifying the amount
sought to be charged to the Department’s Contingency, the reasons why the
amount should be charged to that Contingency, and demonstrating to the
satisfaction of the Department that the costs to be incurred are necessary for the
Work and are the responsibility of the Department. At all times, the Design-
Builder shall avoid and mitigate Department Contingency costs whenever
possible. Before payment or as part of an audit, the Architect and the
Department shall have the authority to verify the actual costs incurred. No costs
may be charged to the Department’s Contingency until the RCO is approved in
writing by the Department and becomes a Change Order.
iii. The Owner contingency shall be an amount, determined by the
Department, which will be available to compensate the Design- Builder for the
increased Cost of the Work incurred by the Design- Builder due to a Contract
Modification or to other increases in the Cost of the Work which the Department
determines, in its sole discretion, is its responsibility. The Department may
increase, decrease or eliminate the Owner contingency at any time.
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m) A list of all active contracts that vendor holds with the District.
n) Campaign Finance Reform Self Certification.
Section 4.7 Department Review of GMP Proposal.
The Design -Builder shall meet with the Department to review the GMP Proposal and the
written statement of its basis. In the event that the Department discovers any inconsistencies
or inaccuracies in the information presented, the Department shall promptly notify the Design-
Builder, who shall make appropriate adjustments to the GMP Proposal, its basis, or both.
Section 4.8 Department Acceptance of GMP Proposal.
The Department and the Design-Builder shall meet to negotiate the terms of the GMP Proposal.
If the GMP Proposal is acceptable to the Department, the Department shall submit the resulting
GMP Amendment for review and approval by the Council for the District of Columbia (the
“Council”). The GMP shall be subject to review and approval by the Council for the District
of Columbia in the event it exceeds the previously approved contract value by more than $1
million. In such event, the GMP shall not be effective until so approved. Please note that the
Council submission and approval timeline varies, and Offerors should plan for 60- 90 days on
average for this process, taking i nto consideration that the Council is not in session over the
summer months.
Section 4.9 GMP Amendment.
In the event that an acceptable GMP Proposal is not developed and a GMP Amendment is not
executed, the Agreement will be terminated. In the event the Agreement is terminated pursuant
to this Section, the Department shall be free to use any of the Project documents and
information developed through the date of termination to retain a new contractor to complete
the Project. In such an event, the Design-Builder shall only be entitled to Fifty percent (50%)
of the Preconstruction Fee.
Section 4.10 Assignment Upon Failure to Reach GMP.
In the event that the Department and the Design-Builder are unable to agree upon a GMP, the
Department shall have the right to terminate this Agreement, and if requested by the
Department, the Design-Builder shall assign any trade subcontracts and its agreement with the
Design-Builder’s Architect to the Department upon such terms and conditions and at the time
requested by the Department. In such an event, the Design-Builder shall forfeit fifty percent
(50%) of the Preconstruction Fee.
Section 4.11 Certification.
As part of the GMP Proposal submitted in accordance with this Article, the Design-Builder
agrees to specifically acknowledge and declare that the Contract Project Documents are
sufficiently complete to have enabled the Design -Builder to determine the Cost of the Work
therein in order to enter into the GMP Amendment and to enable the Design- Builder to agree
to construct the Work outlined therein in accordance with applicable l aws, statutes, building
codes and regulations to the best of Design-Builder’s knowledge, and otherwise to fulfill all its
obligations hereunder. The Design- Builder shall further acknowledge that it has visited the
site, examined all conditions affecting the Work, is fully familiar with all of the conditions
thereon and affecting the same, and, has carefully examined all drawings and specifications
provided to it.
Section 4.12 Shared Savings. In the event there are GMP savings, excluding any Owner
Allowances and Owner Contingency, the GMP savings shall be split 70/30 with 70% allocated
to the Department and 30% allocated to the Design- Builder. The maximum allocation to the
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Design-Builder shall be $990,000.00. Shared Saving will only be contemplated once all
closeout and punchlist items are completed and a full financial log and subcontractor back up
can be provided. The financial log shall include, completed buyout log for a ll divisions and
trades, Construction Contingency log, Owner Contingency and Allowances log, and Approved
Change Order Log.
Section 4.13 Unsafe Materials and Hazardous Materials
Section 4.13.1 The Design -Builder shall not bring, spill or release onto the site asbestos,
polychlorinated biphenyls (PCBs), or any other Hazardous Material that is not customarily
used in a facility of the type and similar to the Project, and shall bring it to the Department’s
attention any specification of such Hazardous Materials in the Design Documents. If the
Design-Builder believes that anything in the Agreement would require that it use or bring onto
the site asbestos, PCBs, or any Hazardous Material that is not customarily used in a facility of
the type and similar to the Project, it shall immediately inform the Department and seek
direction before proceeding.
Section 4.13.2 The Design-Builder shall abate and remove Hazardous Materials on or within
the site as necessary to complete the Work contemplated by this Agreement. The Design-
Builder shall comply with all laws, including, without limitation, the requirements of the
Environmental Protection Agency (“EPA”) and all jurisdictional agencies, as well as all laws
relating to safety, health welfare, and protection of the environment in removing, treating,
encapsulating, passivating, and/or disposing of Hazardous Materials, including, but not limited
to, removal, treatment, encapsulation, passivation, and/or disposal of the Hazardous Materials.
If any notices to governmental authorities are required, the Design-Builder shall also give those
notices at the appropriate times. The Design-Builder shall ensure abatement subcontractors and
disposal sites are appropriately licensed and qualified.
Section 4.13.3 The Design-Builder shall be entitled to submit a change request in accordance
with Article 3 of the Standard Contract Provisions (Construction Contracts) in the event the
Design-Builder encounters Hazardous Materials beyond those contemplated in the Contr act
Documents.
Section 4.13.4 The Design-Builder shall keep detailed records documenting Work done so that
the Department may independently verify compliance with all laws, the number of units
actually removed, treated, and/or disposed of, and the appropriate unit price(s) applicable to
the Work.
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Article 5 - CONSTRUCTION PHASE
Section 5.1 General.
The Construction Phase shall not commence until the Department issues a NTP for
Construction Phase Services. The Design- Builder shall, through Subcontractors or, with the
written consent of the Department, with the Design-Builder’s ow n forces, perform all of the
Work necessary to construct the Project so that it is complete, safe, and properly built in strict
accordance with the approved Construction Project documents and the other requirements of
this Agreement. Without limitation, the Design-Builder shall provide all of the labor, materials,
tools, equipment, temporary services, and facilities necessary to complete the Project in
accordance with the drawings, specifications, Schedule, and Budget that are issued for the
Project. The Design- Builder shall be responsible for paying for and obtaining all necessary
permits and to pay all necessary fees for utility connections. The Work shall be carried out in
a good and workmanlike, first -class manner, and in a timely fashion. All materials and
equipment to be incorporated into the Project shall be new and previously unused unless
otherwise specified by the Department and shall be free of manufacturing or other defects.
Section 5.1.1 Construction Administration. The Design -Builder, through its
Architect/Engineer, shall provide construction administration services to support the
construction phase of the Project. The Work shall include, but is not necessarily limited to, the
following:
a. Manage all aspects of the Project.
b. Manage weekly progress meetings. Site visits are included in the Design-Build Fee.
c. Provide completed Quality Control checklists for implementation of the Project.
d. Review and process shop drawing submissions, RFIs, etc.
e. Prepare meeting notes and records of decisions/changes made.
f. Conduct pre-closeout inspections.
g. Review closeout documents for completeness, such as As-Built Drawings based on the
Contractor’s red line drawings and/or coordinated set developed during the
subcontractor coordination process. As-Built Drawings should be transmitted to DGS
in hard copy, PDF, CAD, and BIM formats.
Section 5.1.2 Unrenovated Portions of the Structure. In constructing the Project, the
Design-Builder shall ensure that unrenovated portions of existing structures, if any, including,
but not limited to, the mechanical, plumbing, electrical systems, and other building systems are
not adversely affected. All unrenovated portions of the structures should function, at a
minimum, at the level of functionality that existed immediately prior to the construction of the
Project. If any unrenovated portion of the Project functions at a lower level of functionality as
a result of the Design -Builder’s Work, the Design- Builder shall be back -charged the costs
incurred by the Department in addressing the decreased functionality.
Section 5.2 Design Completion.
Section 5.2.1 Mid-Point Construction Project Document Review. Based on the approved
Design Development Documents and any approved Value Engineering, the Design- Builder
shall prepare a set of Construction Documents. It is contemplated that the Construction
Documents will be issued in several different sets (i.e. architectural, electrical, mechanical,
structural, etc.). As each such set reaches a point where it is approximately fifty percent (50%)
complete, the Design-Builder shall prepare and submit a progress printing to the Department
for its review and comment.
Page 30
Section 5.2.2 Construction Project Document Review & Coordination. The Design -
Builder shall complete each of the Construction Documents packages in a manner that
addresses the concerns raised by the Department during the review contemplated in
Section 5.2.1 for such package. The Design -Builder shall issue one or more sets of permit
documents to the Department for its review and approval (“Permit Set”). With regard to each
such set, the Design-Builder shall highlight (or bubble) any aspect of the design that represents
a material deviation from the approved Design Developme nt Documents and shall address in
a narrative format the impact, if any, such departure shall have on the Project’s aesthetics,
functionality or performance. The Department shall have the right to disapprove the
Construction Documents for any reason. If the Department disapproves of the Construction
Documents, the Design- Builder will not be entitled to any additional compensation. If,
however, the Department disapproves a Construction Document that is a logical extension of
the approved Design Development Documents, the Design-Builder will be entitled to an
adjustment to the GMP and/or the Project Schedule unless such a package departs from the
Scope of Work fairly reflected in the GMP Drawings and Specifications and in such event the
Design-Builder shall be required to prepare a revised design that complies with the GMP
drawings and specifications (“Drawings and Specifications”) and without any entitlement to
an increase in the GMP or an adjustment of the Project Schedule.
Section 5.2.3. Code Review. The Design -Builder shall submit the Permit Set to the D OB in
order to obtain the necessary building permits for the Project. The Design- Builder shall
monitor the permit process and shall incorporate any changes or adjustments required by the
Code Official. The Design-Builder shall also issue any such changes to the Department for its
review and approval. In this submittal, the Design -Builder’s Architect shall highlight (or
bubble) any aspect of the design that represents a material deviation from the permit set Project
documents and shall address in a narrative format the impact, if any, such departure shall have
on the Project’s aesthetics, functionality or performance. Subsequent to obtaining the necessary
building permits, the Design-Builder shall prepare one or more sets of “issued for construction
Project documents” (the “IFC Set(s)”).
Section 5.2.4. Design Changes. If it should become necessary to amend any of the approved
IFC Set(s), the Design -Builder shall prepare an amendment to the drawings and shall submit
such amendment to the Department for its review and approval. In this submittal, the Design-
Builder shall highlight (or bubble) any aspect of the design that represents a material deviation
from the permit set documents and shall address in a narrative format the impact, if any, such
departure shall have on the Project’s aesthetics, functionality or performance. In the event the
Department does not approve such document within ten (10) business days after issuance,
unless otherwise denied, such document shall be deemed approved, provided however that the
Department has not advised that such document is still under review.
Section 5.2.5 Third Party Contractors. The Department will hire third-party contractors for
commissioning and special inspections. The Design- Builder shall coordinate and work with
the Program Manager and third- party agents during the building permit process and
construction
Section 5.2.6 Final Maintenance and Operations Plan. The Design- Builder shall submit,
for the Department’s review, a final Maintenance and Operations Plan. The Maintenance and
Operations Plan shall be based on the final IFC Set(s). The approved Maintenance and
Operations Plan shall form the basis of the Design-Builder’s maintenance of the building
following Substantial Completion.
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Section 5.3 Subcontracting and Administration
Section 5.3.1 It is contemplated that all or substantially all of the construction of the Project
will be carried out by trade subcontractors and that those trade subcontracts will be awarded
through the competitive bid process contemplated in Section 4.4. The Design-Builder shall
enter into a written agreement with each subcontractor. The trade subcontractors will be
underwritten contract with the Design-Builder. All subcontracts and agreements for the supply
of equipment or materials awarded for the Project shall be fixed -price contracts unless
otherwise expressly authorized by the Department, in writing. It is understood and a greed,
however, that certain trade packages (such as the mechanical and electrical packages) may be
awarded on a design-assist or design-build basis and that such trade packages may be awarded
on such other basis subject to the Department’s consent as to the bidding procedur es and
economic structure with regard to those packages. The Design- Builder and its affiliates may
not carry out trade work with its own forces without the Department ’s written permission,
which permission may be withheld or conditioned by the Department in its sole and absolute
judgment.
Section 5.3.2 In addition to the open book reporting requirements set forth in Section 5.10,
the Design-Builder shall provide to the Department a copy of all quotes or proposals submitted
by potential subcontractors.
Section 5.3.3 The Design-Builder shall develop a purchasing strategy to address the expedited
schedule and conditions of this Project and shall include appropriate provisions in the
subcontracts to minimize the cost impact associated with such conditions. Such strategies may
include, but are not limited to : (i) obtaining from subcontractors unit price quotes for typical
coordination items; (ii) setting aside allowances for coordination work; and (iii) such other
techniques as may be employed by the Design-Builder.
Section 5.3.4 The Design-Builder shall carefully document its procedures for making available
bid packages to potential bidders, the contents of each bid package, discussions with bidders at
any pre-bid meetings, bidders’ compliance with bid requirements, all bids received, the Design-
Builder’s evaluations of all bids, and the basis for the Design-Builder’s recommendation as to
which bidders should be chosen. The Department shall be afforded access to all such records
at all reasonable times so that, among other things, it may independently confirm the Design-
Builder’s adherence to all requirements set forth in the Agreement including, without
limitation, affirmative action requirements and subcontracting requirements.
Section 5.3.5 The Department may, in its sole discretion, reject any or all bids and proposals
received for any bid package, and may require the Design-Builder to obtain new or revised bids
or proposals.
Section 5.3.6 The Department may, in its sole discretion, direct the Design-Builder to accept a
bid from a qualified bidder other than the bidder to whom the Design- Builder recommends
award of a subcontract or supply agreement. If the Department chooses this option, it shall
issue a Change Order to the Design- Builder for any difference between the cost of the
subcontractor supply agreement awarded and the bid price of the Subcontractor or supplier
recommended by the Design-Builder, but without any adjustment to the Design-Build Fee.
Section 5.3.7 The Department must approve all subcontractors and suppliers. The Department
may elect to review the form of any subcontractor agreement with a material supplier to ensure
that such contract incorporates the contractual provisions required by this Agreement.
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Section 5.3.8 The Design-Builder must contract for the provision of all services and materials
for the Project (other than Self -Performed Work which must be authorized in advance and in
writing by the Department) via written subcontracts or, for contracts requiring the provision of
materials or equipment only, and not labor, via written supply agreements. All subcontracts
and supply agreements shall include the following provisions:
Section 5.3.8.1 that, to the extent of the work or supply within the agreement’s scope,
the Subcontractor or supplier is bound to the Design-Builder for the performance of all
obligations which the Design-Builder owes the Department under the Agreement;
Section 5.3.8.2 that the Subcontractor or supplier is not in privity with the Department
and shall not seek compensation directly from the Department on any third-party
beneficiary, quantum meruit, or unjust enrichment claim, or otherwise, except as may
be permitted by any applicable mechanic’s lien law;
Section 5.3.8.3 that the Department is a third -party beneficiary of the subcontractor
supply agreement, entitled to enforce any rights thereunder for its benefit;
Section 5.3.8.4 that the subcontractor or supplier consents to the assignment of its
agreement to the Department, at the Department’s sole option, if the Design-Builder is
terminated for default;
Section 5.3.8.5 that the subcontractor or supplier shall comply immediately with a
written order from the Department to the Design-Builder to suspend or stop work;
Section 5.3.8.6 that the subcontractor or supplier shall maintain records of all Work it
is requested or authorized to do on a time and material or cost-plus basis, or with respect
to claims that it has asserted on a time and materials or cost- plus basis, during the
Project and for a period of time specified in the General Conditions and requiring the
subcontractor or supplier to make those records available for review or audit by the
Department during that time;
Section 5.3.8.7 that the subcontractor shall obtain and maintain, throughout the
Project, workers’ compensation insurance in accordance with the laws of the District
of Columbia (this provision is not applicable to supply agreements);
Section 5.3.8.8 that, if the Department terminates the Agreement for convenience, the
Design-Builder may similarly terminate the subcontractor supply agreement for
convenience, and that the subcontractor or supplier shall, in such a case, be entitled only
to the costs set forth in Article 6 of the Standard Contract Provisions (Construction
Contracts);
Section 5.3.8.9 that the Department shall have the right to enter into a contract with
the subcontractor or supplier for the same price as its subcontractor supply agreement
priceless amounts already paid if the Design- Builder files a voluntary petition in
bankruptcy or has an involuntary petition in bankruptcy filed against it;
Section 5.3.8.10 that the subcontractor or supplier shall not be entitled to payment for
defective or non -conforming work, materials , or equipment, and shall be obligated
promptly to repair or replace non-conforming work, materials, or equipment at its own
cost;
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Section 5.3.8.11 a provision requiring that subcontractors and suppliers promptly pay
subcontractors and suppliers at lower tiers, imposing upon the subcontractors and
suppliers a duty to pay interest on late payments, and barring reimbursement for interest
paid to lower -tier subcontractors or suppliers due to a subcontractor’s or supplier’s
failure to pay them in a timely fashion;
Section 5.3.8.12 a provision requiring that all subcontractors at all tiers comply with
the provisions of Article 13 (Economic Inclusion Goals); provided, however, that the
Design-Builder may, in its reasonable discretion impose a different LSDBE
subcontracting goal on some or all of its subcontractors ; provided, further, however,
that nothing in this provision shall be deemed to excuse the Design-Builder from using
its best efforts to achieve the LSDBE subcontracting goal on an aggregate basis for the
Project;
Section 5.3.8.13 a provision which allows the Design- Builder to withhold payment
from the subcontractor if the subcontractor does not meet the requirements of the
subcontract;
Section 5.3.8.14 lien and claim release and waiver provisions substantially identical to
those in this Agreement.
Section 5.3.9 Within seven (7) calendar days of receiving any payment from the Department
that includes amounts attributable to Work performed or materials or equipment supplied by a
Subcontractor or supplier, the Design-Builder shall either pay the subcontractor or supplier for
its proportionate share of the amount paid to the Design- Builder for the subcontractor’s or
supplier’s Work or materials or equipment or notify the Department and the subcontractor or
supplier, in writing, of the Design- Builder’s intention to withhold all or part of the payment
and state the reason for the withholding. All monies paid to the Design- Builder under the
Agreement shall be used first to pay amounts due to subcontractors or suppliers supplying labor
or materials for the Project and only money remaining after such payments are made may be
used for other items such as the Design-Build Fee. Monies paid by joint check shall be deemed
to have been paid fully to the subcontractor or supplier named as a joint payee unless the
Department agrees otherwise in writing. Any interest paid to subcontractors or suppliers
because the Design-Builder has failed to pay them in a timely fashion shall not be reimbursable
as part of the Cost of the Work.
Section 5.3.10 The Design -Builder shall not enter into any profit sharing, rebate, or similar
arrangement with any subcontractor or supplier at any tier with respect to the Project or the
Work to be carried out for the Project.
Section 5.3.11 The Design-Builder shall not substitute or replace any subcontractor or supplier
approved by the Department without the Department's Contracting Officer and DSLBD’s prior
written consent.
Section 5.3.12The Department has the right to contact subcontractors or suppliers at all tiers,
or material or equipment suppliers directly to confirm amounts due and owing to them or
amounts paid to them for Work on the Project, and to ascertain from the subcontractors or
suppliers at all tiers their projections of the cost to complete their work or to supply their
material or equipment, or the existence of any claims or disputes. In doing so the Department
shall not issue any directions to subcontractors or suppliers at any tier.
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Section 5.3.13 If it comes to the Department’s attention that a subcontractor or supplier has not
been paid in a timely fashion (other than for disputed amounts), and if the Design-Builder fails
to cure the problem within five (5) calendar days after the Department gives it written notice
of the failure to pay, the Department may make payments to the subcontractor or supplier and
Design-Builder by joint check. If the payment was already made to the contractor, the joint
check be for future payments (if any).
Section 5.3.14 The Design -Builder shall be required to provide an evaluation of each of its
subcontractors’ performance by completing and submitting to the Department the
Subcontractor Performance Evaluation Form set forth as Exhibit O, as follows:
a. Within ninety (90) days of initiating the Construction Phase; and
b. Within thirty (30) days after the Final Completion of the Project.
Section 5.3.15 The Design -Builder shall be required to provide to the Contracting Officer a
certificate of insurance for each subcontractor before such subcontractor begins work.
Section 5.4 Weekly Progress Meetings & Schedule Updates.
The Design-Builder shall schedule and conduct, at a minimum, weekly progress meetings
following the Design- Builder’s generated agenda at which the Department, the Design -
Builder’s Architect, the Program Manager, the Design-Builder, and appropriate subcontractors
can discuss the status of the Work. The Design- Builder shall prepare and promptly distribute
meeting minutes. In addition, the Design- Builder shall submit bi- weekly schedule updates,
which shall reflect actual conditions of Project progress as of the date of the update. The update
shall reflect the actual progress of construction, identify any developing delays, regardless of
their cause, and reflect the Design-Builder’s best projection of the actual date by which
Substantial Completion and Final Completion of the Project will be achieved. Via a narrative
statement (not merely a critical path method schedule), the Design-Builder shall identify the
causes of any potential delay and state what, in the Design -Builder’s judgment, must be done
to avoid or reduce that delay. The Design-Builder shall point out, in its narrative, changes that
have occurred since the last update, including those related to major changes in the scope of
work, activities modified since the last update, revised projections of durations, progress , and
completion, revisions to the schedule logic or assumptions, and other relevant changes. Any
significant variance from the previous schedule or update shall also be identified in a narrative,
together with the reasons for the variance and its impact on Project completion. All Schedule
updates shall be in a native format reasonably acceptable to the Department (e.g., Primavera).
The Department may make reasonable requests during the Project for changes to the format or
for further explanation of the information provided. Submission of updates showing that
Substantial Completion or Final Completion of the Project will be achieved later than the
applicable scheduled completion date shall not constitute requests for an extension of time and
shall not operate to change the scheduled completion date(s). The Department’s receipt of, and
lack of objection to, any scheduled update showing Substantial Completion or Final
Completion later than the dates agreed upon in the Project Schedule shall not be regarded as
the Department’s agreement that the Design-Builder may have an extension of time, or as a
waiver of any of the Depa rtment’s rights, but merely as the Design- Builder’s representation
that, as a matter of fact, Substantial Completion or Final Completion of the Project may not be
completed by the agreed-upon date in the Project Schedule. Changes to the scheduled
completion dates may be made only in the circumstances and only by the methods set forth in
this Agreement.
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Section 5.5 Written Reports.
The Design-Builder shall provide written reports to the Department on the progress of the entire
Work at least monthly from Preconstruction Notice to Proceed until the Final Completion of
the Project. The monthly report shall include: (i) an updated schedule analysis, including any
plans to correct defective or deficient work or recover delays; (ii) an updated cost report; (iii)
a monthly review of cash flow; (iv) a quality control report; (v) progress photos; and (vi) an
updated buyout log for all awarded subcontracts. Such written report shall include the
following elements:
Section 5.5.1 Construction Progress Update. Each monthly update shall contain a narrative
description of the Project progress and a critical path method schedule in Primavera format,
including any plans to correct defective or deficient work or for time lost due to delays.
Section 5.5.2 Cost Update. The monthly update shall reflect, by GMP line item, the original
line-item amount, approved, pending, and projected Change Order amounts, the cost incurred
to date, the projected cost to complete the Work of the line item, and any variance between the
actually approved budgeted balance of the line item and the projected cost to complete. A clear
distinction must be made between approved Change Orders and those merely requested or
anticipated. The report shall explain all variances including “buy-outs” or final actual costs
including those below their respective GMP line item. In addition, the report must disclose
any instances in which the Design- Builder has transferred amounts from one line item to
another, or from the Contingency to any other line item. Neither submission nor the
Department’s failure to reject an update reflecting that the projected cost to complete the
Project exceeds the GMP will operate to increase the GMP or waive the Department’s right to
enforce the GMP. If the report reflects budget overruns, it must also include a recovery plan.
Section 5.5.3 Economic Inclusion Report. The monthly report shall include a detailed
summary of the Design- Builder’s efforts and results with respect to the economic inclusion
goals set forth in this Agreement. Such report shall be in a format acceptable to the Department
and shall include, at a minimum: (i) the Design-Builder’s overall performance with respect to
the goals; (ii) a listing of subcontracts and agreements with material suppliers during the month
and the percentage of those subcontracts and agreements with material suppliers awarded to
LSDBEs; (iii) a listing of subcontracts during the month and the estimated percentage of the
labor hours to be worked by District of Columbia residents pursuant to those subcontracts; and
(iv) a description of the major subcontracting and supply opportunities that will be solicited
during the next three (3) months and the actions being taken to meet the subcontracting goals.
Section 5.5.4 Cash Flow Update. If there have been any changes to the anticipated cash flow
for the Project, such changes shall be disclosed and explained in the monthly report. If there
are no such changes, the report shall so state.
Section 5.5.5 Quality Assurance Report. The monthly report shall include a detailed
summary of the steps that are being employed to ensure quality construction and workmanship.
Each report shall specifically address issues that were raised by the Department and/or its
Program Manager during the prior month and outline the steps that are being taken to address
such issues.
Section 5.5.6 Progress Photos. The monthly report shall include updated progress photos
that shall detail changes in the Work during the month. The Design-Builder shall also maintain
a daily log containing a record of weather, Subcontractors working on the site, number of
workers, major equipment on the site, Work accomplished, problems encountered and other
similar relevant data as the Department may reasonably require. The log shall be available to
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the Department, the Design-Builder’s Architect, and the Program Manager, and on a monthly
basis, a copy of the log shall be submitted to the Department.
Section 5.6 Cost Control System.
The Design-Builder shall use a system of cost control for the Work in a format consistent with
the GMP Drawings & Specifications and approved by the Department, which shall include,
without limitation, regular monitoring of actual costs for activities in p rogress and estimates
for uncompleted tasks and proposed changes. The Design-Builder shall identify variances
between actual and estimated costs and report the variances to the Department, the Design -
Builder’s Architect, and the Program Manager at regular intervals.
Section 5.7 Key Personnel.
Section 5.7.1 To carry out its duties, the Design- Builder shall provide at least the key
personnel identified in Exhibit F to this Agreement (“Key Personnel”), who shall carry out
the functions identified in Exhibit F. Among other things, the Key Personnel shall include:
A - Key Personnel of the Design-Builder:
The following individuals shall be considered key personnel (“Key Personnel”) of
Design Builder:
i. Project Manager
ii. Superintendent
iii. Project Executive
iv. Project Engineer
B - Key Personnel of the Design-Builder’s Architect/Engineer
The following individuals shall be considered the Key Personnel of the Design-
Builder’s Architect/Engineer:
i. Project Manager
ii. Project Architect
iii. Principal in Charge
iv. Lead Mechanical Engineer
It is contemplated that these Key P ersonnel will work from the design stage, purchasing, and
throughout the bulk of the fieldwork . The Design -Builder’s obligation to provide adequate
staffing is not limited to providing the Key Personnel but is determined by the needs of the
Project. The Design-Builder shall not replace any of the Key Personnel without the
Department’s prior written approval. If any of the Key Personnel become unavailable to
perform services in connection with the Agreement due to death, disability, or separation from
the employment of the Design-Builder or any affiliate of the Design-Builder, then the Design-
Builder shall promptly notify the Department’s Contracting Officer and propose a replacement
acceptable to the Department. The Department shall be entitled to complete information before
approving such replacement, including, but not limited to, a current resume of the proposed
replacement to include qualifications and experience.
Section 5.7.2 Certain members of the Design -Builder’s Key Personnel shall be subject to a
replacement fee for their removal or reassignment by the Design -Builder. Those members of
the Design-Builder’s Key Personnel subject to a replacement fee shall be identified in Exhibit
F as subject to the replacement fee provisions. In the event there is no delineation in Exhibit
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F of those members of the Design- Builder’s Key Personnel subject to the replacement fee
provisions of this Agreement, then all of the Key Personnel shall be subject to the replacement
fee provisions of this Agreement.
Section 5.7.2.1 Removal or Replacement of Key Personnel. Subject to the terms of
Section 5.7.1, if the Design-Builder replaces one of the key personnel listed in Exhibit
F as being subject to a replacement fee, without the prior written consent of the
Department, then the Design-Builder shall pay to the Department’s Contracting Officer
the amount set forth in the Project Information Section of this Agreement as
replacement fee and not a penalty, to reimburse the Department for its administrative
costs arising from the Design-Builder’s failure to provide the Key Personnel. The
foregoing replacement fee amount shall not bar recovery of any other damages, costs ,
or expenses other than the Department’s internal administrative costs.
Section 5.7.2.2 In addition, the Department shall have the right, to be
exercised in its sole discretion, to remove, replace, or to reduce the scope of services
of the Design- Builder in the event that a member of the Key Personnel has been
removed or replaced by the Design- Builder without the prior written consent of the
Department’s Contracting Officer. In the event , that the Department exercises the
right to remove, replace or to reduce the scope of services of the Design-Builder, the
Department shall have the right to enforce the terms of this Agreement and to keep-
in-place those members of the Design -Builder’s team not removed or replaced and
the remaining members shall complete the services required under this Agreement in
conjunction with the new members of the Design-Builder’s team approved by the
Department’s Contracting Officer.
Section 5.8 Qualified Personnel/Cooperation.
The Design-Builder shall employ on the Project only those employees and Subcontractors who
will work together in harmony and who will cooperate with one another on the Project. The
Design-Builder shall enforce strict discipline, good order , and harmony among its employees
and its Subcontractors and shall remove from the site any person who is unfit for the work or
fails to conduct herself or himself in a proper and cooperative manner. If the Department
requests the removal of any person as unfit or as having behaved inappropriately, the Design-
Builder shall promptly comply.
Section 5.9 Warranty.
The Design-Builder warrants to the Department that materials and equipment furnished under
the Project Documents will be of good quality and new unless otherwise required or permitted
by the Contract documents, that for the one (1) year period following the Substantial
Completion Date, the Work will be free from defects not inherent in the quality required or
permitted, and that the Work will conform to the requirements of the Contract documents. The
Design-Builder’s warranty excludes remedies for damage or defect caused by abuse,
modifications not executed by the Design- Builder, improper or insufficient maintenance,
improper operation, or normal wear and tear from normal usage. The Design-Builder shall use
commercially reasonable efforts to schedule a joint inspection of the Project during the eleventh
month after Substantial Completion is achieved. During such inspection, the Design- Builder
and a representative of the Department shall walk the Project to identify any necessary warranty
work
Section 5.10 Open Book Reporting.
The Design-Builder shall maintain an open- book reporting system with the Department,
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allowing the Department or its consultants access to the Design -Builder’s Subcontractors and
material suppliers, invoices, purchase orders, Change Order estimates, records for Self -
Performed Work, and other relevant Project d ocumentation and sources of information
concerning the Work or costs. The Department shall not use its access to the Subcontractors
to give instructions or directions to them. All instructions or directions shall be given only to
the Design-Builder.
Section 5.11 Claims for Additional Time.
Section 5.11.1 Time is of the essence of this Agreement. The Project must be Substantially
Complete no later than the Substantial Completion Date set forth within the Project Information
Section above.
Section 5.11.2 The Design-Builder will perform the Work so that it shall achieve Substantial
Completion by the Substantial Completion Date. Unless the failure to achieve Substantial
Completion by the Substantial Completion Date is a result of an Excusable Delay, as defined
in Section 5.11.3, the delay shall be deemed Non-Excusable and the Design-Builder shall not
be entitled to an extension of time. Without limiting the generality of the foregoing, delays for
the following reasons shall be regarded as Non-Excusable and shall not entitle the Design-
Builder to an extension of time:
Section 5.11.2.1 Delays due to job site labor disputes, work stoppages, or suspensions
of work;
Section 5.11.2.2 Delays due to adverse weather, unless the Design-Builder establishes
that the adverse weather was of a nature and duration in excess of averages established
by data from the U.S. Department of Commerce, National Oceanic and Atmospheric
Administration for the Project locale for the ten (10) years preceding the effective date
of the Agreement. For purposes of this clause, whether shall only be deemed “adverse”
if the weather in question was more severe than that encountered at the Project site over
the last ten (10) years for the month in question. Such determinations shall be made
based on the number of rain/snow days or the cumulative precipitation total for the
month in question. Notwithstanding the foregoing, named storms shall conclusively be
deemed “adverse”;
Section 5.11.2.3 Delays due to the failure of the Design- Builder or Subcontractors or
material suppliers at any tier to perform in a timely or proper fashion, without regard to
concepts of negligence or fault; or
Section 5.11.2.4 Delays due to Site Conditions whether known or unknown as of the
effective date of the Agreement, foreseeable or unforeseeable at that time, naturally
occurring or man-made; provided, however, that delays due to differing Site Conditions
as permitted by Article 4, Section A of the Standard Contract Provisions (Construction
Contracts) or Hazardous Materials Remediation shall be deemed an Excusable Delay.
Section 5.11.3 The Design -Builder shall be entitled to an adjustment in the Substantial
Completion Date due to an Excusable Delay. The term “Excusable Delay” shall mean:
Section 5.11.3.1 Delays due to adverse weather other than those that are classified as
a Non-Excusable delay in accordance with Section 5.11.2.2 of this Agreement;
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Section 5.11.3.2 Delays due to acts of God, war, unavoidable casualties, civil unrest,
and other similar causes of delay that are beyond the control of the Design- Builder;
provided, however, that in no event shall a Non- Excusable Delay or the action or
inaction of the Desi gn-Builder, or any of its employees, agents, Subcontractors or
material suppliers be deemed an Excusable Delay; or
Section 5.11.3.3 Delays caused by differing Site Conditions as permitted by Article 4,
Section A of the Standard Contract Provisions (Construction Contracts) or Hazardous
Materials Remediation as contemplated in Section 5.11.2.4 of this Agreement;
Section 5.11.3.4 Delays due to suspensions of work; or
Section 5.11.3.5 Delays caused by the Client Agency or separate contractors of the
Client Agency to the extent such delays are not concurrent with delays caused by the
Design-Builder or any of its employees, agents, subcontractors or material suppliers.
In addition to the foregoing, a delay shall be deemed to be an Excusable Delay only to
the extent that such delay: (i) warrants an extension in the Substantial or Final
Completion Date; (ii) has not been caused by the Design- Builder or any of its
employees, agents, Subcontractors or material suppliers; (iii) is on Project’s critical
path; and (iv) is in addition to any time contingency periods set forth in the critical path.
Section 5.11.4 If the Design -Builder wishes to make a claim for an adjustment in the time
allotted per the Project Schedule, written notice as provided herein shall be given. The Design-
Builder’s claim shall include an estimate of the cost and of the probable effect of delay on the
progress of the Work. In the case of continuing delay, only one claim is necessary.
Section 5.11.5 In no event shall the Design- Builder be entitled to an increase in the GMP or
the Design-Build Fee as a result of either an Excusable or Non -Excusable Delay; provided,
however, that to the extent that a delay is: (i) an Excusable Delay; (ii) of unreasonable duration;
(iii) caused solely by the Department; and (iv) not concurrent with any other delay, then the
Design-Builder shall be entitled to receive its actual costs, including all direct and indirect
costs, bonds and insurances resulting from such extended duration. It is understood that the
Design-Builder shall not be entitled to any profit or home office overhead, including, but not
limited to, an increase in the Design -Build Fee, on any amounts to which the Design- Builder
may be entitled pursuant to the preceding sentence.
Section 5.12 Site Safety and Clean-Up.
Section 5.12.1 The Design-Builder will be required to provide a safe and efficient site, with
controlled access. As part of this obligation, the Design- Builder shall be responsible for
initiating, maintaining, and supervising all safety precautions and programs in connection with
the Project, and shall comply with the requirements set forth in Article 16, Section F of the
Standard Contract Provisions (Construction Contracts).
Section 5.12.2 Safety Plan. Prior to the start of construction activities, the Design-Builder shall
prepare a safety plan for the construction phase conforming to OSHA 29 CFR 1926 (such plan,
the “Safety Plan”). Pursuant to OSHA 29 CFR 1926, the Design-Builder shall provide all
employees with the necessary Personal Protective Equipment ( “PPE”) to comply with all
COVID-19 regulations, and shall additionally require anyone on site to comply with any PPE
requirements. This Safety Plan developed by the Design- Builder shall describe the proposed
separation and the specific nature of the safety measures to be taken including fences and
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barriers that will be used as well as the site security details. The Safety Plan will be submitted
to the Department and OSSE for their review and approval prior to the commencement of
construction. Once the Safety Plan has been approved, the Design- Builder shall comply with
it at all times during construction. The Design -Builder shall be required to revise the Safety
Plan as may be requested by the Department or OSSE at any time, including, but not limited
to, as necessary to address any new national or local COVID-19 regulations, recommendations,
or restrictions. The cost of revising and complying with the plan shall not entitle the Design-
Builder to an increase in the GMP. In the event the Design-Builder fails to provide the Safety
Plan, the Design-Builder will not be permitted to commence the Construction Phase until the
Safety Plan is submitted , and in no event shall any resulting delay constitute an Excusable
Delay. Additionally, the Design- Builder shall comply with the requirements of Article 27,
Section A of the Standard Contract Provisions (Construction Contracts).
Section 5.12.3 Safety Barriers/Fences. As part of its responsibility for Project safety, the
Design-Builder shall install such fences and barriers as may be necessary to separate the
construction areas of the site from those areas that are then being used by the Client Agency
for educational purposes. The Design- Builder shall describe in the Safety Plan the proposed
separation and the specific nature of the fences and barriers that will be used.
Section 5.12.4 Site Security. The Design -Builder shall be responsible for site security and
shall be required to provide such watchmen as are necessary to protect the site from unwanted
intrusion. Site Security shall be included in the Design-Builder’s General Conditions Cost.
Section 5.12.5 Exculpation. The right of the Department and Client Agency to comment on
the Safety Plan and the nature and location of the required fences and barriers shall in no way
absolve the Design-Builder from the obligation to maintain a safe site.
Section 5.12.6 Site Cleanliness. During the Agreement performance and/or as directed by the
Department’s Program Manager, as the installation is completed, the Design- Builder shall
ensure that the site is clear of all extraneous materials, rubbish, or debris.
Section 5.13 Workhours, Site Office, and Coordination with Client Agency and
Community
Section 5.13.1 Workhours and Noise Ordinances . The Design -Builder shall comply with
the applicable work hours and noise ordinance and neither it nor its subcontractors shall
undertake work on the Project site other than at the times and sound level permitted by the
work hours and noise ordinances, including but not limited to any restrictions established by
local permitting authorities.
Section 5.13.2 Site Office. Throughout the Project, the Design- Builder shall provide and
maintain a fully-equipped construction office for the Project site. The Design-Builder shall, at
all times, provide and maintain a fully equipped construction office for DGS staff assigned to
the Project. The costs for these Site Office(s) shall be included as part of the Design-Builder’s
general conditions cost. The site office shall include at a minimum, working space for two (2)
DGS staff members, a restroom, internet access, electricity, and climate control.
Section 5.13.3 Parking. The Design-Builder shall organize its work in such a manner so as to
minimize the impact of its operations on the surrounding community. To the extent that the
number of workers on the site is likely to have an adverse impact on neighborhood parking,
the Design-Builder shall develop a parking plan for those individuals working on the site that
is reasonably acceptable to the Department.
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Section 5.13.4 Wheel Washing Stations. The Design- Builder shall provide wheel washing
stations on- site so as to prevent the accumulation of dirt and other refuse on the streets
surrounding the Project site.
Section 5.13.5 Outreach Plan. The Design-Builder shall keep the Department informed of
the construction activities and their potential impact on the community and shall develop a
community outreach plan (the “Outreach Plan”). The Design -Builder shall submit the
Outreach Plan to the Department prior to its implementation which shall be subject to the
Department’s review and approval.
Section 5.13.6 Supervision. Throughout the Work, the construction office shall be managed
by personnel competent to oversee the Work at all times while construction is underway. Such
personnel shall maintain full -time, on -site construction supervision and provide daily
inspections, quality control, monitoring, coordination of various trades, record drawings, and
daily work log.
Section 5.14 Close-out & FF&E.
Section 5.14.1 A detailed list of FF&E requirements will be developed during the design and
Preconstruction Phase and attached hereto as Exhibit N.
Section 5.14.1 Punchlist. Promptly before Substantial Completion, the Design-Builder shall
cause the Design-Builder’s Architect to develop a punchlist . Once the punchlist is prepared,
the Design-Builder shall inspect the work along with representatives from the Department. The
punch list shall be revised to reflect additional work items that are discovered during such
inspection. The Design- Builder shall correct all punchlis t items no later than sixty (60) days
after Substantial Completion is achieved.
Section 5.14.2 Warranties & Manuals. T he Design-Builder shall prepare and submit the
following Project documentation in accordance with the DGS Tern Over/Close Out Manual:
(i) a complete set of product manuals (“O&M” or “Operation and Maintenance Manuals”),
training videos, draft and final warranties, etc.; (ii) attic stock; (iii) an equipment schedule; (iv)
a proposed schedule of maintenance for the new building; (v) environmental, health and safety
documents for the new building; and (vi) all applicable inspection certificates/permits (boiler,
elevator, emergency evacuation plans, health inspection, etc.) for the new building. No later
than thirty (30) days following Substantial Completion, the Design- Builder shall prepare and
submit: (i) a complete set of its Project files; and ( ii) a set of record drawings, including BIM
models. The Design-Builder shall provide a maintenance and repair cost services report, which
includes conducting a 40- year life cycle cost analysis, which includes a detailed list of
replacement costs, maintenance costs, an estimate of repair costs, anticipated energy costs, and
a list of other relevant life cycle costs.
Section 5.14.3 Eleven Month Walk. The Design-Builder shall use commercially reasonable
efforts to schedule a joint inspection of the Project during the eleventh month after Substantial
Completion is achieved. During such inspection, the Design-Builder and a representative of
the Department shall walk the Project to identify any necessary warranty work.
Section 5.14.4 Support for Initial Heating & Cooling Season. The Design -Builder and its
mechanical subcontractor shall provide support to the Client Agency and the Department
during system start-up and in initial operation for the first heating and cooling season after
Substantial Completion is achieved.
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Section 5.14.5 Training. The Design-Builder shall provide training to Client Agency staff on
all of the building systems. The Design- Builder shall be required to schedule such training
sessions and shall use commercially reasonable efforts to ensure all such training occurs prior
to Final Completion. All training shall be electronically recorded and turned over to the
Department for future use.
Section 5.14.6 The Design-Builder shall assist Client Agency in relocating FF&E and other
items as necessary within the renovated building, as well as for cleaning and other move -in
services as directed by the Department. The GMP shall include an allowance and scope of
work for these activities. This allowance is in addition to cleaning services that would otherwise
be required by the Design-Builder, including, but not limited to, the obligation to deliver a
broom-clean building at the end of construction.
Section 5.15 Salvaged and Stored Items. The Design -Builder shall be responsible for
salvaging and storing all items as identified by the Department, and to the benefit of the
Department, in accordance with all applicable District laws and regulations, after notifying the
Department and receiving the Department’s permission to proceed.
Section 5.16 Protection of Existing Elements.
The Design -Builder shall protect all existing features, public utilities, and other existing
structures during construction. The Design- Builder shall protect existing, site improvements,
trees, and shrubs from damage during construction. Protection extends to the root systems of
existing vegetation. The Design- Builder shall not store materials or equipment, or drive
machinery, within the drip line of existing trees and shrubs.
Section 5.17 Sediment and Erosion Control.
The Design-Builder shall be responsible for installing sediment and erosion control measures
in accordance with DOEE guidelines , inclusive of, but not limited to: silt fencing, inlet
protection, stabilized construction entrances, and other control measures . The Design-Builder
shall be responsible for scheduling and coordination of DOEE Kick-Off Meeting.
Section 5.18 Quality Control.
Section 5.18.1 General Obligation. The Design-Builder shall be responsible for all activities
necessary to execute, manage, control, and document work for ensuring compliance with the
contract documents. The Design-Builder’s responsibility includes ensuring adequate quality
control services are provided by the Design- Builder’s employees, its subcontractors, vendors
& suppliers at all levels from concept to completion including site assessment-
investigations/discovery, schematic design development, preconstruction, construction, and
closeout phases. All Contract-related work activities and their implementation procedures
described within this quality control plan shall also address safety, measures to ensure
regulatory permit & code compliance, submittal management, change document
processing/incorporation, reporting, and all other functions necessary to achieve the highest
levels of quality during design and construction efforts . The Design-Builder’s quality control
plan (“QC Plan” or “Quality Control Plan” ) submittal must include statements a ffirming
compliance with DGS QC Program requirements.
Section 5.18.2 Quality Control Plan. Within thirty (30) days after the NTP, the Design-
Builder shall develop a Quality Control Plan . A draft of the Quality Control Plan shall be
submitted to the Department and shall be subject to the Department’s review and approval.
This draft shall comply with the guidelines and include at a minimum, the necessary
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components for Quality Control Plan development described within the Department’s Quality
Control Master Program ( Exhibit U) and Section 5.14. The Quality Control Plan shall be
tailored to the specific products/type of construction activities contemplated in the Design
Development Documents, and in general, shall include a table of contents, quality control team
organization, and hierarchical arrangement detailing ongoing, regular interaction/coordination
within the Design -Builder’s teams, duties/responsibi lities of quality control personnel,
submittal procedures, schedule of specified inspection & testing requirements, deficiency
correction procedures, issues & conflicts resolution, RFI documentation process, change
management, as-built record-keeping of contract documents and a listing of customized quality
control procedures, that will be required to ensure key elements of the Work are executed in
conformance with design documents. Examples of a few key elements that necessitate focused
attention and involvement of competent agencies include MEP -Energy systems
startup/commissioning, security systems integration, and building envelope multi -trade
coordination. Mockup construction requirements must be incorporated into the plan, in order
to establish a minimum standard of acceptance by the Department, for the Project’s most visible
and critical structural-architectural building elements like CIP concrete and exterior facades.
The Quality Control Plan must clearly describe requirements addressing the involvement of
qualified personnel for critical building elements and any delegated design features that require
engineered solutions, backed by supporting analysis data.
The Quality Control Plan must clearly describe quality control measures such as using
Department’s Quality Control Master Program 3-phase checklists recommended to be
undertaken by both design & construction teams. Prior to the construction phase commencing,
the Design -Builder must advise the Department regarding the status of their drawing &
specification documents, from a percentage completion standpoint. For that matter, the design
phase quality control effort shall provide metrics to gauge whether the design documents –
drawings & specifications – are as complete as possible, prior to the Design-Builder’s
groundbreaking. DGS QC Program Design Phase Checklists include metrics to perform this
evaluation of design documents. Similarly, the Quality Control Plan must describe in detail
the quality control mechanisms proposed to be implemented by the Design-Builder for
ensuring adherence with design documents by way of minimal rework and maintaining the
highest standards of construction. The Quality Control Plan must detail a description of any 3rd
parties suggested to be hired by the Department such as building consultants and
commissioning agents.
Section 5.18.3 Implementation. During the Construction Phase, the Design- Builder shall
perform regular quality control inspections and create reports using the 3- phase inspection
checklists included within the DGS Quality Control Master Program manuals based on such
inspections pursuant to the Quality Control Plan. The quality control reports with the 3-phase
Checklists shall be provided to the Department electronically on a monthly basis. The Design-
Builder shall incorporate a quality control section in the progress meetings to discuss
outstanding deficiencies, testing/inspections, and upcoming Work. The monthly report shall
include a detailed summary of the steps that are being employed to provide quality construction
and workmanship. The monthly report should specifically address issues raised during the
month and outline the steps that are being used to address such issues. The following are the
components that must at a minimum be included within the monthly Quality Control report
submitted to DGS. All components must be updated regularly, and current versions included
with monthly submissions to the Department.
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a. A written narrative of Quality Control activities for the month supported by embedded,
cross-referenced photos. Should include 3-phase checklists compiled on a regular basis
as part of the Design-Builder’s ongoing quality control efforts.
b. CPM updates and analysis reflecting the status of critical submittals affecting work
progress, elaborated further within the descriptive work narrative accompanying CPM
baseline schedule and subsequent, regular updates’ submissions to the Department.
c. Deficiency tracking log.
d. Test & Inspections log recording all related activities for the month and cumulative for
the Project. This must correspond to and cross-reference the Project’s testing &
inspections schedule described above with Section 5.18.2.
e. Submittal Schedule detailing the status of all Project submittals.
Section 5.19 Acceleration.
Subject to the terms of this Section, the Department shall have the right to direct the Design-
Builder to accelerate the Work if, in the reasonable judgment of the Department: (i) the
Design-Builder fails to supply a sufficiency of workers or to deliver the materials or equipment
with such promptness as to prevent the delay in the progress of the Work; or (ii) the progress
of the Work otherwise materially falls behind the projections contained in the then currently
approved Project Schedule. In the event that the Department or its Program Manager determine
that either of the events specified in the preceding sentence have occurred, the Department shall
provide the Design-Builder with written notice of such event and the Design- Builder shall be
required to provide the Department with a schedule recovery plan (“Recovery Plan”) that is
reasonably designed to address the concerns raised in such notice within three (3) days after
receipt of such notice. If the Department and the Design- Builder are unable to agre e on the
terms of the Recovery Plan within five (5) days after the issuance of the notice (i.e. within forty
eight (48) hours after the receipt of the proposed Recovery Plan), the Department shall have
the right to direct such acceleration as the Department, in its reasonable judgment, deems
necessary. Provided Department complies with the notice provisions of this Section, the cost
of any acceleration directed under this Section shall not justify an adjustment to the GMP or
the Substantial Completion Date.
Given the nature of the Project and the fact that there is a fixed date upon which the Client
Agency plans to occupy the building, the Design-Builder hereby: (i) acknowledges that this
provision is a material inducement upon which the Department has relie d in entering into this
Agreement; and (ii) represents and warrants that it will include sufficient funding in the GMP
in order to comply with the requirements of this Section.
Section 5.20 Corrective Action Plan.
Subject to the terms of this Section, the Department shall have the right to direct the Design-
Builder to revise the provisions of the Quality Control Plan if, in the reasonable judgment of
the Department, the craftsmanship of the Work being installed fails to comply with generally
applicable industry standards, requirements set forth in the specifications that are reasonably
related to the quality of craftsmanship quality, or any provisions set forth in this Agreement
(each a “Quality Control Event”). In the event that the Department or its Program Manager
determines that a Quality Control Event has occurred, the Department shall provide the Design-
Builder with written notice of the occurrence of such Quality Control Event and the Design-
Builder shall be required to provide the Department with a corrective action plan that is
reasonably designed to address the concerns raised in such notice within three (3) days after
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receipt of such notice (each instance, a “Corrective Action Plan”). If the Department and the
Design-Builder are unable to agree on the terms of the Corrective Action Plan within five (5)
days after the issuance of the notice (i.e. within forty -eight (48) hours after the receipt of the
proposed corrective action plan), the Department shall have the right to direct such corrective
action measures as the Department, in its reasonable judgment, deems necessary. Such
directive may include adjustments to the procedural provisions set forth in the Quality Control
Plan and/or may impose additional requirements on the manner in which Work is being
performed. Provided the Department complies with the notice provisions of this Section, the
cost of any such corrective action directed under this Section shall not justify an adjustment to
the GMP or the Substantial Completion Date.
Section 5.21
a. Use of Department’s Electronic Project Management Information System
(ProjectTeam). The Design-Builder shall utilize the Department’s current project
management software, ProjectTeam, to submit any and all P roject documentation
required to be provided by the Design-Builder for the Project, including, but not limited
to: (i) requests for information; (ii) submittals; (iii) meeting minutes; (iv)
invoices/applications for payment (full package including all forms required by DGS);
(v) certified payrolls (in addition to upload via LCP Tracker); (vi) drawings and
specifications; (vii) GMP and any Submissions that require approval by DC Council ;
(viii) punchlist; and (ix) other Project documents as may be designated by the
Department.
i. Electronic storage and transmission of information via P rojectTeam system
shall be compliant with the provisions of the document security.
b. Invoice Submittal. The Design-Builder shall create and submit payment requests in an
electronic format through the DC Vendor Portal, https://vendorportal.dc.gov. The
Design-Builder shall submit proper invoices on a monthly basis. To constitute a proper
invoice, the Design -Builder shall enter all required information into the Portal after
selecting the applicable purchase order number which is listed on the Design-Builder’s
profile.
Section 5.22 Conformance with Laws.
It shall be the responsibility of the Design- Builder to perform under the Agreement in
conformance with the Department’s Procurement Regulations and all applicable statutes, laws,
codes, ordinances, regulations, rules, requirements, orders, and policies of governmental
bodies, including, without limitation, the U.S. Government and the District of Columbia
government; and it is the sole responsibility of the Design-Builder to determine the
Procurement Regulations, statutes, laws, codes, ordinances, regulations, rules, requirements
and orders that apply and their effect on the Design-Builder’s obligations thereunder. Given
the requirements for the Project, the Department may, at its sole discretion : (i) apply for
variance to the requirement of adhering to the Green Building Act on the Project ; and (ii)
consider deferring the scope of work associated with stormwater management to a later phase
of the Project.
Section 5.23 Licensing, Accreditation, and Registration
The Design-Builder and all of its subcontractors and subconsultants (regardless of tier) shall
comply with all applicable District of Columbia, state, and federal licensing, accreditation, and
registration requirements and standards necessary for the performance of the Agreement.
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Without limiting the generality of the foregoing, all drawings shall be signed and sealed by a
professional architect or engineer licensed in the District of Columbia.
Section 5.24 Construction Phase Deliverables.
The deliverables set forth in Exhibit C are required during the Construction Phase.
Section 5.25 Close-Out Deliverables.
The deliverables shall be as set forth in the DGS Tern Over/Close Out Manual (Exhibit T).
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Article 6 - DESIGNATED REPRESENTATIVES
Section 6.1 Department’s Designated Representative.
The Department designates the individual(s) identified in Exhibit H as its representative with
express authority to bind the Department with respect to all matters requiring the Department’s
approval or authorization. Subject to the limitations on their authority specified in Exhibit H,
these representative(s) shall have the exclusive authority to make decisions on behalf of the
Department concerning estimates and schedules, construction budgets, changes in the Work,
and execution of Change Orders, Contrac t Modifications or Change Directives, and shall
render such decisions promptly and furnish information expeditiously, so as to avoid
unreasonable delay in the services or performance of the Work of the Design-Builder. In order
for the Department to effectively manage th e Project and assure that the Design -Builder does
not receive conflicting instructions regarding the Work, the Design- Builder shall promptly
notify the Department’s representative upon receiving any instructions or other communication
in connection with the Design-Builder’s Work from any employee of the Department or other
purported agent of the Department other than the Department’s designated representative.
Section 6.2 Design-Builder’s Designated Representative.
The Design-Builder designates the individual(s) identified in Exhibit I as its representative
with express authority to bind the Design- Builder with respect to all matters requiring the
Design-Builder’s approval or authorization. In addition, the Department retains the right to
approve candidates to serve as on- site personne l in accordance with each candidate’s
experience with similar projects and local marketplace conditions. Once approved, individuals
cannot be changed without the Department’s prior approval. During the entire term of the
Agreement, it is agreed that the Design -Builder’s designated representative will devote his or
her time exclusively to the Project, unless the Department consents to a reduction in time. All
services provided by the Design-Builder shall be performed in accordance with the highest
professional standards recognized and adhered to by design-builders that build first-class state-
of-the-art buildings and projects that are similar to the Project in large urban areas.
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6 Article 7 - COMPENSATION AND PAYMENTS FOR DESIGN &
PRECONSTRUCTION PHASE SERVICES
Section 7.1 Compensation
The Department shall compensate and make payments to the Design -Builder for design
services in accordance with this Article 7 and Article 10. For design services, including
construction administration services provided during the construction phase, the Design-
Builder’s compensation shall not exceed the amount set forth in the Project Information Section
of this Agreement (the “Design Fee”).
Section 7.2 Payments
Section 7.2.1 Payments for Design & Preconstruction Phase Services shall be made monthly
over the anticipated duration of the Design & Preconstruction Phase following presentation
and acceptance of the Design-Builder’s invoice and shall be in proportion to services
performed. In no event, however, will the aggregate of the Design-Builder’s monthly invoices
for Design & Preconstruction Phase Services exceed the Preconstruction Fee plus the Design
Fee.
Section 7.2.2 Payments are due and payable in accordance with Article 9 of this Agreement.
Amounts unpaid after the date of which payments are due shall bear interest in accordance with
the Quick Payment Act.
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7
Article 8 - COMPENSATION FOR CONSTRUCTION PHASE SERVICES
Section 8.1 Compensation.
The Department shall compensate and make payments to the Design-Builder for Construction
Phase Services in accordance with this Article 8 and Article 10. For the Construction Phase
Services, the Design -Builder’s total compensation shall be as set forth in the Project
Information Section of this Agreement (the “Design -Build Fee”). The Design-Builder
acknowledges and agrees that the percentage of the total amount of the Design-Build Fee set
forth in the Project Information Section of this Agreement is at risk (the “At-Risk Portion”),
and the Design-Builder shall only be entitled to the At-Risk Portion as set forth below. Unless
and until the Design-Builder’s entitlement to any subset of the At-Risk Portion is determined
by the Department, the Design-Builder shall only be entitled to bill for the portion of the
Design-Build Fee that is not at risk (the “Base Design-Build Fee”). The Design-Build Fee
shall be billed in accordance with Article 10, to be paid in equal monthly installments over the
anticipated duration of the Construction Phase. To the extent that the duration of the
Agreement is extended, the then remaining amounts of the Design-Build Fee will be re -
allocated such that the then -existing portion of the Design-Build Fee shall be evenly spread
over the then remaining duration of the Construction Phase.
Section 8.1.1 Award Fee Pool. The At -Risk Portion shall be used to establish and fund an
award fee pool (“the Award Fee Pool”). Within sixty (60) days after approval and fully
execution of this Agreement, the Department shall appoint a committee that will determine
entitlement to those portions of the Award Fee Pool so designated below (such committee, the
“Award Fee Evaluation Committee”). The Award Fee Evaluation Committee will consist of:
(i) the Department’s Deputy Director for Capital Construction or their designee; (ii) OSSE Chief
of Facilities or its designee; (iii) DGS Contracting Officer or their designee; (iv) DGS Capital
Construction representative; and (v) OSSE Facilities representative. Committee members shall
not include an individual who has day-to-day interactions or involvement on the Project, or an
individual who is presently involved in an active project with the Design-Builder.
Section 8.1.2 The Design-Builder may earn the At-Risk Portion of the Design -Build Fee in
accordance with Exhibit R.
Section 8.2 Lump Sum General Conditions Cost.
The Lump Sum General Conditions Cost shall be the amount paid by the Department for those
costs described in Section 9.2. The Lump Sum General Conditions Cost shall not be increased
or decreased as a result of change orders or change directives unless such changes extend the
duration of the Project beyond the substantial completion date. To the extent the Design-
Builder incurs General Conditions costs in excess of the Lump Sum General Conditions Cost,
the Design-Builder shall not be entitled to reimbursement for such amounts. In such an event,
the Design-Builder shall be required to adequately staff the Project.
Section 8.3 Initial Not-to-Exceed Amount.
Unless and until the GMP Amendment is executed and approved by the Council for the District
of Columbia, this Agreement shall have an initial not-to-exceed amount as set forth in the
Project Information Section of this Agreement (the “Initial NTE”) as further described in
Exhibit X. In no event shall the Design- Builder be entitled to recover more than the Initial
NTE unless the Design-Builder is authorized to exceed the Initial NTE by the Department in
advance and in writing. Prior to expending or committ ing any portion of the Initial NTE, the
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Design-Builder shall obtain the Department’s written approval of such expenditure or
commitment, as well as a determination as to whether the work will qualify as a “capital”
expense under the Department’s financial guidelines to the extent capital money i s to be
expended. In making such a request, the Design- Builder shall submit an itemized breakdown
of the work that the Design- Builder seeks to release using funds from the Initial NTE as well
as the associated costs of such work.
Section 8.4 Project Budget.
The Department has established the Project Budget as set forth in the Information Section of
this Agreement. When the GMP is established, such GMP shall not exceed the Project Budget,
and such GMP shall include any and all amounts which may be due to the Design-Builder
pursuant to this Agreement. In no event shall the Design -Builder be entitled to recover more
than the GMP unless the Design-Builder is authorized to exceed the GMP by the Department
in advance and in writing. The Design- Builder shall inform the Department’s Contracting
Officer at least fifteen (15) calendar days in advance, if the Design -Builder encounters any
foreseen or unforeseen project -related events, which might reasonably affect : (i) existing
Project Budget; or (ii) DC council-authorized appropriations.
Section 8.5 No Adjustments to Fee.
It is the Department’s intent to engage the Design -Builder to develop a GMP that meets the
programmatic requirements set forth in Exhibit A 2 by the Client Agency and the Project
Budget as set forth herein (i.e. designed to budget), to allow for Substantial Completion of the
Work to be achieved no later than the Substantial Completion Date. The Design-Builder shall
be entitled to an adjustment to the Design-Build Fee at the time the GMP is established to the
extent, and only to the extent, that: (i) the Department makes additions to the scope that, when
measured relative to the program, cause the GMP to exceed the Design-Builder’s original
concept estimate by more than five percent (5%); or (ii) the Department makes additions to the
scope provided for herein which (other than for punchlist or warranty work) which requires the
Design-Builder’s services at the Project to extend 30 days or more beyond the Substantial
Completion Date. With regard to Change Orders issued after the GMP is established, and in
accordance with Section 18.8, the Design-Builder shall be entitled to an increase in the Design-
Build Fee to the extent, and only to the extent, t hat: (i) the Department has added a new
programmatic element to the Project; or (ii) the Department made additions to the GMP scope
which (other than punchlist or warranty work) require the Design- Builder’s services at the
Project to extend 30 days or more beyond the Substantial Completion Date.
Section 8.6 Reserved
Section 8.7 Direct Cost of Work
“Direct Cost of the Work” shall mean labor, material , and other costs reasonably and
necessarily incurred in the proper performance of the Work as approved by the Department
and shall include, but not be limited to:
Section 8.7.1 Labor. Payment will be made for direct labor costs plus indirect labor costs such
as insurance, taxes, fringe benefits and welfare provided such costs are considered reasonable.
Indirect costs shall be itemized and verified by receipted invoices. If verification is not possible,
up to five percent (5%) of direct labor costs may be allowed.
Section 8.7.2 Rented Equipment . Payment for required equipment rented from an outside
company that is neither an affiliate of nor a subsidiary of, the Design-Builder will be based on
receipted invoices which shall not exceed rates given in the current edition of the Rental Rate
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Blue Book for Construction Equipment published online by Data Quest. If actual rental rates
exceed manual rates, written justification shall be furnished to the Contracting Officer for
consideration. No additional allowance will be made for overhead and profit. The Design-
Builder shall submit written certification to the Contracting Officer that any required rented
equipment is neither owned by nor rented from the Design- Builder or an affiliate of or
subsidiary of the Design-Builder.
Section 8.7.3 Design -Builder’s Equipment. Payment for required equipment owned by the
Design-Builder or an affiliate of the Design -Builder will be based solely on an hourly rate
derived by dividing the current appropriate monthly rate by 176 hours. No payment will be
made under any circumstances for repair costs, freight and transportation charges, fuel,
lubricants, insurance, any other costs, and expenses, or overhead and profit. Payment for such
equipment made idle by delays attributable to the Government will be based on one -half the
derived hourly rate under this subsection.
Section 8.7.4 Materials. Incorporated and unincorporated materials as permitted under
Section 9.1.
Section 8.7.5 Direct Cost of the Work does not, however, include home office overhead, field
supervision, general conditions, or profit of either the Subcontractor or the Design-Builder. No
personnel above the level of a working foreman shall be considered a Direct Cost of the Work.
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Article 9 - COST OF THE WORK FOR CONSTRUCTION PHASE
Section 9.1 Cost of the Work.
The term “Cost of the Work” shall mean the costs necessarily incurred by the Design-Builder
in the proper performance of the Work and shall include only the following:
Section 9.1.1 Payments made by the Design- Builder to Subcontractors and suppliers, other
than design subconsultants, but only in accordance with the subcontracts and supply
agreements;
Section 9.1.2 Payments made by the Design- Builder to its design consultants and sub-
consultants; provided, however, that the Design- Builder shall not be reimbursed for the costs
of design services and construction administration services in excess of the Design Fee;
Section 9.1.3 All amounts due to the Design- Builder under the terms of the Department's
written authorization for the Design- Builder to perform any portion of the Work as Self -
Performed Work. If authorization for the Design -Builder to engage in Self -Performed Work
is not on a fixed-price basis, then, as to that Work, the following costs shall be within the Cost
of the Work:
a. Labor. Properly documented wages actually paid to Project foremen, construction
workers, and other personnel in the direct employ of the Design-Builder, while engaged
in approved Self -Performed Work, together with contributions, assessments, payroll
taxes, or fringe benefits requir ed by the laws or applicable collective bargaining
agreements.
b. Incorporated Materials. The cost, net of trade discounts, of all materials, products,
supplies, and equipment incorporated into the Self-Performed Work, including, without
limitation, costs of transportation and handling.
c. Unincorporated Materials. The cost of materials, products, supplies, and equipment
not actually installed or incorporated into the Self -Performed Work, but required to
provide a reasonable allowance for waste or spoilage, subject to the Design- Builder’s
agreement to turn unused excess materials over to the Department at the completion of
the Project or, at the Department’s option, to sell the material and pay the proceeds to
the Department or give the Department a credit in the amount of the proceeds against
the Cost of the Work.
Section 9.1.4 Royalty and license fees paid for use of a design, process, or product if its use is
required by this Agreement or has been approved in advance by the Department;
Section 9.1.5 Fees for obtaining all required approvals or permits associated with any
abatement, demolition, utilities abandonment, and utility relocation (including utility
connection fees), including any and all building and/or trade permits fees;
Section 9.1.6 All performance and payment bonds and general liability insurance. The
Department may, in its sole discretion, allow the Design -Builder to recover the costs of
subcontractor default insurance at a mutually agreed -upon rate in lieu of trade level bonds,
provided that such insurance be approved by the Department in advance and after being
presented with a cost-benefit analysis of such use;
Section 9.1.7 All fees and other costs necessarily incurred to carry out testing and inspection
required by the Agreement or applicable laws, or otherwise to maintain proper quality
assurance. The costs the Design-Builder incurs to schedule and coordinate any additiona l
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testing and inspections the Department may decide to conduct itself shall be within the Cost of
the Work unless the additional testing establishes that the Work tested was defective or
otherwise failed to satisfy requirements set forth in the Agreement, in which case the Design-
Builder shall pay the costs, without reimbursement;
Section 9.1.8 All bonds to jurisdictional agencies (utilities, stormwater management, land
disturbance, and grading);
Section 9.1.9 The Lump Sum General Conditions Cost; and
Section 9.1.10 Costs of repairing or correcting damaged or nonconforming Work executed by
the Design-Builder’s Architect, or Design- Builder’s other consultants, Subcontractors , or
suppliers, provided that such damaged or nonconforming Work was not caused by negligence
or failure to fulfill a specific responsibility of the Design -Builder, and only to the extent that
the cost of repair or correction is not recoverable by the Desig n-Builder from insurance,
sureties, subcontractors or suppliers. It is understood that the cost of repairing, correcting
damaged or nonconforming Work that was Self -Performed shall not be reimbursable in any
event.
Section 9.2 Lump Sum General Conditions Cost.
The Contractor shall propose a lump sum amount for the General Conditions Cost, and this
lump sum amount shall be the extent of what the Design-Builder is entitled to recover for the
cost of General Conditions (such cost, the “Lump Sum General Conditions Cost”). The Lump
Sum General Conditions Cost shall not be increased or decreased as a result of Change Orders
or Change Directives unless such changes: (i) extend the duration of the Project beyond the
Substantial Completion Date; and (ii) the Design -Builder can demonstrate to the satisfaction
of the Department that such additional General Conditions costs are necessary and not due to
any fault of the Design-Builder, its subcontractors, materialmen, consultants or anyone making
claims thereunder. To the extent the Design-Builder incurs General Conditions Costs in excess
of the Lump Sum General Conditions Cost, the Design- Builder shall not be entitled to
reimbursement for such amounts unless the Department authorizes, by written Contract
Modification, an increase to the Lump Sum General Conditions Cost. Nonetheless, in such an
event, if the Design Builder exceeds the Lump Sum General Conditions Cost, the Design-
Builder shall continue to be required to adequately staff the Project and provide all
Construction Services. General Conditions shall not be billed till site mobilization has
commenced unless prior authorization is given by the Department, in writing. General
Conditions shall include, but are not limited to:
a) Cost of construction staff;
b) Fringe Benefits associated with construction staff;
c) Payroll taxes and payroll insurance associated with construction staff;
d) Staff costs associated with obtaining permits and approvals;
e) Out-of-house consultants, including, but not limited to, permit expeditors, safety
managers, estimators and schedulers;
f) Job vehicles;
g) The field office(s) for the Design- Builder and Department, including, but not limited
to: (i) trailer purchase and/or rental; (ii) field office installation, relocation and removal;
(iii) utility connections and charges during the Construction Phase; (iv) furniture; (v)
office supplies;
h) Office equipment including, but not limited to: (i) computer hardware and software; (ii)
fax machines; (iii) copying machines; (iv) voice/data system installation and use
charges; (v) job radios;
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i) Local delivery and overnight delivery costs;
j) Field computer network;
k) First aid facility;
l) Printing cost for drawings, bid packages, etc.;
m) BIM Cost (software, seats, hardware);
n) Parking costs for the construction staff;
o) Salting sidewalks and shoveling snow on sidewalks that surround the site; and
p) Exterior site fencing, fence wrapping and construction signage per DGS Standards.
q) Site security, as explained in Section 5.12.4.
Section 9.3 Costs Not to Be Reimbursed.
All costs not specifically listed in Section 9.1 as being within the Cost of the Work are excluded
from the Cost of the Work and shall not be reimbursable. In particular, but without limitation,
the Cost of the Work does not include any of the following:
a) Any personnel or labor costs other than those provided for in Section 9.1.3 (a).
b) Fees for any permits or licenses the Design -Builder requires to conduct its general
business operations.
c) Capital expenses and interest on capital employed for the Work.
d) The cost of home or regional offices, it being understood that compensation for such
costs included in the Design-Build Fee.
e) Sales or use taxes unless the Design -Builder establishes that applicable law required
payment of such taxes.
f) Costs due to the errors or omissions of the Design- Builder or its subcontractors or
suppliers at all tiers, negligent or otherwise.
g) Costs dues to breach of Contract by the Design-Builder or its subcontractors or material
suppliers at all tiers, including, without limitation, costs arising from defective or
damaged work or its correction, disposal of materials or equipment erroneously
supplied, and repairs to property damaged by the Design- Builder or its subcontractors
or material suppliers at all tiers.
h) Any costs incurred in performing work of any kind before Preconstruction NTP unless
specifically authorized by the Department in advance and in writing.
i) Direct or indirect costs of any kind, except those expressly included in Section 9.1.
Section 9.4 Discounts, Rebates, And Refunds.
Section 9.4.1 Cash discounts obtained on payments made by the Design -Builder shall accrue
to the Department if: (i) before making such payment(s), the Design-Builder included them in
an Application for Payment and received payment therefor from the Department; or (ii) the
Department has deposited funds with the Design-Builder with which to make such payment(s).
All other cash discounts shall accrue to the Design-Builder. Trade discounts, rebates, refunds
and amounts received from sales of surplus materials and equipment shall accrue to the
Department, and the Design-Builder shall make provisions so that such amounts can be
secured.
Section 9.4.2 Amounts that accrue to the Department in accordance with the provisions of
Section 9.4.1 shall be credited to the Department as a deduction from the Cost of the Work.
Section 9.5 Facilitating Tax Exempt Purchases.
The Department expects that the Project will qualify as tax-exempt under applicable laws.
Upon request, the Department will provide the Design-Builder with the necessary information
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relating to the tax exemption. In the event that any savings are attributable to the tax- exempt
status of the Project, the Design-Builder shall not be entitled to share in such savings.
Section 9.6 Accounting Records.
The Design-Builder shall keep full and detailed accounts and exercise such controls as may be
necessary for proper financial management under the Agreement. The Design -Builder’s
accounting and control systems shall be satisfactory to the Department. The D epartment, its
representatives, and the Department’s accountants shall be afforded access to the Design-
Builder’s records, books, correspondence, instruction, drawings, receipts, subcontracts,
purchase orders, vouchers, memoranda, and other data relating to this Project, and the Design-
Builder shall preserve such Project documentation relating to the Project for a period of three
years after final payment, or for such longer period as may be required by law.
Section 9.7 Excluded Cost Elements.
It is the Department’s intent that the Design -Builder provides a turn -key solution for the
implementation of the Project, and the budget set herein has been developed based on such a
framework. The Design-Builder shall advance the Project in a manner consistent with such
budget and the understanding that the following cost element s are excluded from the budget
set forth herein.
a. 3rd Party Special Inspections per the Department of Buildings Special Inspection
Policy;
b. 3rd Party Commissioning Agent (not including the testing agency needed to perform
necessary tests associated with commissioning scope);
c. Quality Assurance/Quality Control vendors, the Department may wish to engage; and
d. Builders risk insurance.
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Article 10 - CONSTRUCTION PHASE PAYMENTS
Section 10.1 Progress Payments.
The Design -Builder shall be compensated in a series of progress payments and a Final
Payment, for Work completed in accordance with the Agreement, and for which proper
Applications for Payment have been submitted and approved. The amount of each progress
payment shall be as follows:
The Cost of Work completed to date
Plus Cost of Work for Pay Period x 60% Design-Build Fee
Current approved estimated.
Cost of Work through Final Completion
Plus Any subset of the Design -Build Fee to which the Department has determined
the Design-Builder to be Entitled
Minus Applicable retainage
Minus Amounts previously paid by the Department
Section 10.2 Retention.
The Department shall withhold from each progress payment an amount equal to ten percent
(10%) of the payment related to: (i) each Subcontract and supply agreement; (ii) the Design
Fee; (iii) the Preconstruction Fee; (iv) the Design-Build Fee; (v) the General Conditions Costs;
and (vi) the Cost of the Work-related to each item of Self-Performed Work, until such time as
fifty percent (50%) of the then currently budgeted cost associated with each such item has been
invoiced, at which point the Department may cease retaining against such item; provided,
however, that retention shall not be held on the costs of bonds, insurances, and those elements
of the general requirements which consist of a single, insolated effort such as dumpster disposal
and safety carpentry. The Department at its sole and absolute discretion may elect to increase
the retention of any trade Subcontractor up to ten percent (10%), in the event the Department
determines that the situation so warrants. The Department also in its sole and absolute
discretion, may elect to reduce the retainage relating to a particular trade Subcontractor, or the
Cost of the Work -related to a specific item of Self -Performed Work to zero upon: (a)
satisfactory completion of such Work; (b) submission of all required warranties, certifications,
and operating or maintenance instructions with respect to that Work; and (c) execution of
appropriate waivers of lien and releases of claims. However, in no event shall the total
retainage held by the Department be reduced to an amount that is less than two and one-half
percent (2.5%) of the GMP.
Section 10.3 Stored Materials.
The Department shall not be required to pay for materials stored at the site or stored at other
locations absent prior written authorization to do so, which authorization may be withheld at
the Department's sole discretion. If the Department expressly agrees to pay for materials stored
at the site but not yet incorporated into the Work, the Application for Payment may also include
a request for payment of the cost of such materials, if the materials have been delivered to the
site, and suitably stored. Such requests shall be documented by appropriate invoices and bills
of sale. Payment for stored materials shall be conditioned also on the Design- Builder’s
representation that it has inspected the material and found it to be free from defect and
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otherwise in conformity with this Agreement, and on satisfactory evidence that the materials
are insured under the builder’s risk policy. Further, if the Design- Builder requests the
Department to allow payments for storage of materials offsite, the Design -Builder shall be
required, inter alia, to agree to the execution of proper Project documentation to afford the
Department a secured interest in the materials upon payment.
Section 10.4 Design-Builder’s Certification.
Each Application for Payment shall be accompanied by the Design- Builder's signed
certification that:
Section 10.4.1. all amounts paid to the Design-Builder on the previous Application for
Payment that were attributable to Subcontractor Work or to materials or equipment being
supplied by any supplier have been paid over to the appropriate Subcontractors and suppliers;
Section 10.4.2. that all amounts currently sought for Subcontractor Work or supply of
materials or equipment are currently due and owing to the Subcontractors and material or
equipment suppliers;
Section 10.4.3. that all Work, materials or equipment for which payment is sought is, to the
best of the Design-Builder's knowledge, free from defect and meets all of the requirements set
forth in the Agreement;
Section 10.4.4. that the Design -Builder’s subcontracts include the clauses required by
subparagraphs (1) through (4) of D.C. Official Code §2-221.02(d) (2017); and
Section 10.4.5. The Design-Builder shall not include in an Application for Payment amounts
for Work for which the Design-Builder does not intend to pay.
Section 10.6 Lien Waivers.
Each Application for Payment shall be accompanied by written waivers of the right to file a
mechanic’s lien and all other claims, in a form substantially similar to Exhibit K for the
Design-Builder and all Subcontractors and material suppliers at all tiers who have supplied
labor or material or both for which payment is requested, subject only to the receipt of payment.
If the Department so requests, the Design -Builder shall also submit unconditional waivers of
liens for itself and all Subcontractors and material suppliers at all tiers with respect to Work or
materials or equipment for which payment has been previously made, and additional forms of
waiver acknowledging receipt of final payment under the Agreement, and providing final
release of such liens.
Section 10.7 Warranty of Title.
By submitting an Application for Payment, the Design-Builder warrants to the Department that
title to all Work for which payment is sought will pass to the Department, without liens, claims,
or other encumbrances, upon the receipt of payment by the Department. The Department may
require the execution of appropriate Project documents to confirm the passage of a clear title.
Passage of title shall not operate to pass the risk of loss with respect to the Work in question.
Risk of loss remains with the Design-Builder until Substantial Completion, unless otherwise
agreed by the Department, in writing.
Section 10.8 Submission.
On the twenty-fifth day of each month, the Design-Builder shall submit to the Department
(with a copy to the Program Manager) an Application for Payment, which Application for
Payment shall cover the entire month during which the Application for Payment is submitted.
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All amounts formally submitted via Application for Payment and not disputed by the
Department shall be due and payable on the last day of the month following submission or, if
that is not a business day, on the following business day. If the Design-Builder and Department
are unable to agree on the amounts properly due and owing, the Department shall pay in
accordance with its good faith determination, and the Design-Builder may protest and pursue
a claim as provided in this Agreement and the Standard Contr act Provisions (Construction
Contracts and Architectural and Engineering Services Contracts).
Section 10.9 Right to Withhold Payments.
The Department will notify the Design -Builder within fifteen (15) days after receiving any
Application for Payment of any defect in the Application for Payment or the Design-Builder’s
performance which may result in the Department’s declining to pay all or a part of the requested
amount. The Department may withhold payment from the Design- Builder, in whole or part,
as appropriate, if:
Section 10.9.1 the Work is defective and such defects have not been remedied; or
Section 10.9.2 the Department has determined that the Design -Builder’s progress has fallen
behind the Project Schedule, and the Design-Builder fails, within ten (10) calendar days of the
Department’s written demand, to provide the Department with a realistic and acceptable
Recovery Plan in accordance with Section 5.19; or
Section 10.9.3 the Design-Builder's monthly schedule update reflects that the Design- Builder
has fallen behind the Project Schedule, and the Design- Builder fails to include, in the same
monthly report, a realistic and acceptable Recovery Plan in accordance with Section 5.19; or
Section 10.9.4 the Design-Builder has failed to provide reports in full compliance with Section
5.5 of this Agreement; or
Section 10.9.5 the Design-Builder has failed to pay Subcontractors or suppliers promptly or
has made false or inaccurate certifications that payments to Subcontractors or suppliers are due
or have been made; or
Section 10.9.6 any mechanic’s lien has been filed against the Department, the site or any
portion thereof or interest therein, or any improvements on the site, even though the
Department has paid all undisputed amounts due to the Design-Builder, and the Design-
Builder, upon notice, has failed to remove the lien, by bonding it off or otherwise, within ten
(10) calendar days; or
Section 10.9.7 the Department has reasonable evidence that the Work will not be completed
by the Substantial Completion Date, as required, that the unpaid balance of the GMP would
not be adequate to cover actual or liquidated damages arising from the anticipated delay; or
Section 10.9.8 the Department has reasonable evidence that the Work cannot be completed for
the unpaid balance of the GMP; or
Section 10.9.9 the Design -Builder is otherwise in substantial breach of this Agreement
including, without limitation, failures to comply with LSDBE Utilization requirements or;
Section 10.9.10 the Application for Payment is incomplete, unsubstantiated, and/or does not
contain sufficient documentation for evaluation by the Contracting Officer.
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Section 10.10 Payment Not Acceptance.
Payment of any progress payment or final payment shall not constitute acceptance of Work
that is defective or otherwise fails to conform to the Agreement or a waiver of any rights or
remedies the Department may have with respect to defective or nonconforming Work.
Section 10.11 Department Not Obligated to Others.
The Department shall have no obligation to pay or be responsible in any way for payments to
a consultant or subcontractor performing portions of the Work.
Section 10.12 Final Payment.
A final payment (“Final Payment”) shall be made by the Department to the Design -Builder
when: (i) Final Completion has been achieved; (ii) all deliverables set forth in Section 5.14,
and Exhibit N have been delivered to and are accepted by the Department; (iii) the Design -
Builder provides the Department a complete set of product manuals (O&M), training videos,
and warranties, as applicable; and (iv) a complete final Application for Payment and a final
accounting for the Cost of the Work has been submitted by the Design- Builder and reviewed
by the Department and, to the extent the Department determines appropriate, the Department’s
accountants. The Department shall make the Final Payment not more th an thirty (30) days
after the Department verifies the amount of the final payment set forth in a complete final
Application for Payment.
Section 10.12.1 The amount of the Final Payment shall be calculated as follows:
Section 10.12.1.1 Take the sum of the Cost of the Work substantiated by the Design-
Builder’s final accounting and the Design-Build Fee; but not more than the GMP.
Section 10.12.1.2 Subtract amounts, if any, for which the Department withholds
pursuant to the Agreement.
Section 10.12.1.3 Subtract the aggregate of previous payments made by the
Department. (If the aggregate of previous payments made by the Department exceeds
the amount due the Design- Builder, the Design- Builder shall promptly reimburse the
difference to the Department).
Section 10.12.1.4 The Final Payment shall take into account any savings accruing to
the Department or the Design-Builder.
Section 10.12.1.5 The Department will review and report in writing on the Design-
Builder’s final accounting within 30 days after delivery of the final accounting to the
Department by the Design-Builder. Based upon the Department’s determination of the
Cost of the Work, and provided the other conditions of Section 10.12.1 have been met,
the Department will, within fifteen (15) days after the Department’s determination,
notify the Design-Builder of any amount that the Department will withhold and the
reasons therefor. The time periods stated in this Section 10.12.1.5 supersede those for
typical progress payments.
Section 10.12.1.6 If the Department determines that the Cost of the Work is other than
that claimed by the Design-Builder, the Design-Builder shall be entitled to proceed in
accordance with Article 3 of the Standard Contract Provisions (Construction
Contracts). Pending a final resolution of the disputed amount, the Department shall pay
the Design-Builder the amount that the Department determines to be appropriate.
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Article 11 - INSURANCE
A. GENERAL REQUIREMENTS. The Contractor at its sole expense shall procure and
maintain, during the entire period of performance under this contract, the types of
insurance specified below. The Contractor shall submit a Certificate of Insurance to
the Contracting Officer (CO) giving evidence of the required coverage prior to
commencing performance under this contract. In no event shall any work be performed
until the required Certificates of Insurance signed by an authorized representative of
the insurer(s) have been provided to, and accepted by, the CO.
If the Contractor and/or its subcontractors maintain broader coverage and/or higher
limits than the minimums shown below, the District requires and shall be entitled to the broader
coverage and/or the higher limits maintained by the Contractor and subcontractors.
B. INSURANCE REQUIREMENTS
1. Commercial General Liability Insurance (“CGL”) - The Contractor shall provide
evidence satisfactory to the CO with respect to the services performed that it carries a
CGL policy, written on an occurrence (not claims -made) basis, on Insurance Services
Office, Inc. (“ISO”) form CG 00 01 04 13 (or another occurrence -based form with
coverage at least as broad and approved by the CO in writing), covering liability for all
ongoing and completed operations of the Contractor and under all subcontracts,
covering claims for bodily injury, including without limitation sickness, disease or
death and mental anguish of any persons, broad form property damage, including loss
of use resulting therefrom, personal and advertising injury, and including coverage for
liability arising out of an Insured Contract (including the tort liability of another
assumed in a contract) and acts of terrorism (whether caused by a foreign or domestic
source). Such coverage shall have limits of liability of not less than $1,000,000 for each
occurrence, $2,000,000 general aggregate, $2,000,000 products and completed
operations aggregate, and $1,000,000 personal and advertising injury aggregate limit.
The Commercial General Liability shall be further endorsed to:
a) To the fullest extent permitted by law, provide additional insured coverage
using ISO form CG 2010 0413 and CG2037 04 13 (or its equivalent) to The
Government of the District of Columbia
b) Coverage available to the additional insureds shall apply on a primary and
non-contributing basis as respects any other insurance, deductibles, or self-
insurance available to the additional insureds
c) A waiver of subrogation in favor of The Government of the District of
Columbia
d) Any Annual Aggregate shall apply on a per location or per project basis
e) Defense costs shall be in addition to and not erode the limits of liability
2. Automobile Liability Insurance - The Contractor shall provide evidence satisfactory to
the CO of commercial (business) automobile liability insurance written on ISO form
CA 00 01 10 13 (or another form with coverage at least as broad and approved by the
CO in writing) including coverage for all owned, hired, borrowed and non- owned
vehicles and equipment used by the Contractor in connection with work under this
agreement, with a minimum combined single limit of $1,000,000. Such policy or
policies of automobile liability insurance shall be written on an "occurrence" (as
opposed to a "claims made") basis.
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The Commercial Auto Liability policy shall be further endorsed to:
a. To the fullest extent permitted by law, provide additional insured coverage
to The Government of the District of Columbia
b. Coverage available to the additional insureds shall apply on a primary and
non-contributing basis as respects any other insurance, deductibles, or self-
insurance available to the additional insureds
c. A waiver of subrogation in favor of The Government of the District of
Columbia
d. Defense costs shall be in addition to and not erode the limits of liability
e. If applicable, include Form CA 99 48 03 06 Pollution Liability - Broadened
Coverage for Covered Autos - Business Auto, Motor Carrier, and Truckers
(or its equivalent)
f. Moving and Storage Companies shall be required to provide evidence of
BMC91 or BMC91X filing
For Contractors providing transportation:
Contractors providing transportation must additionally comply with the following:
a) Operators holding a restricted WMATC Certificate of Authority must have a
single limit of $1.5 million in combined (bodily injury and physical damage)
coverage, or
b) Operators holding an unrestricted WMATC Certificate of Authority must have
a single limit of $5M in combined (bodily injury and physical damage)
coverage.
In addition, both types of WMATC certificate holders must have in place the following
Licensing Requirements as applicable:
a) Commercial Driver’s License (CDL) with the following endorsements:
i) P (Passenger): All drivers MUST have a P endorsement enabling them to transport
passengers (16 or more).
ii) S (School Bus): All drivers operating school buses (flashing lights, swing arm w/stop sign)
must also have an S endorsement. Please note that driver credentials for any vehicles that are
converted school buses must have S.
b) Valid (unexpired) US Department of Transportation Medical Examiner
Certification (“Medical Card”).
For Contractors using District Government-Owned Vehicles:
Agencies that provide Contractors with District Government -owned or leased motor vehicles
are responsible for ensuring that such vehicles are used only for the performance of
contract. Contractor is prohibited from using such vehicles for home -to-work transportation
unless specifically provided for under the terms of the contract and approved in writing by the
Contracting Officer, or otherwise provided by law. Contractor shall obtain automobile liability
insurance with a minimum combined single limit of $ 1,000,000 to cover bodily injury and
property damage to protect the contractor and the government against third-party claims arising
from the use of District Government-owned vehicles. The Commercial Auto Liability Policy
shall be endorsed to include:
a. To the fullest extent permitted by law, provide additional insured coverage
to The Government of the District of Columbia;
b. Coverage available to the additional insureds shall apply on a primary and
non-contributing basis as respects any other insurance, deductibles, or self-
insurance available to the additional insureds; and
c. A waiver of subrogation in favor of The Government of the District of
Columbia.
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In the event of loss, destruction, or damage to any government -owned vehicles used in the
performance of contact, Contractor shall be liable for full cost of repair or replacement of lost,
destroyed, or damaged vehicle.
3. Workers’ Compensation Insurance - The Contractor shall provide evidence satisfactory
to the CO of Workers’ Compensation insurance in accordance with the statutory
mandates of the District of Columbia or the jurisdiction in which the contract is
performed.
Employer’s Liability Insurance - The Contractor shall provide evidence satisfactory to
the CO of employer’s liability insurance as follows: $500,000 per accident for injury; $500,000
per employee for disease; and $500,000 for policy disease limit.
The Workers Compensation and Employers Liability shall be further endorsed to:
a) Include a Waiver of Subrogation in favor of The Government of the District
of Columbia.
b) Where applicable, include United States Longshore and Harbor Workers
Compensation Act (USL&H)
c) Where applicable, include Jones Act Coverage for seamen or crew members
on an “if any” basis.
4. Network Security/Privacy (Cyber) Liability Insurance covering acts, errors, omissions,
and violation of any consumer protection laws arising out of Contractor’s operations or
services with a limit of $2,000,000 per claim and in the aggregate. Such coverage shall
include but not be limited to, third party and first party coverage for loss or disclosure
of any data, including personally identifiable information and payment card
information, network security failure, violation of any consumer protection laws,
unauthorized access and/or use or other intrusions, infringement of any intellectual
property rights (except patent), negligence or breach of duty to use reasonable care,
breach of any duty of confidentiality, invasion of privacy, or violations of any other
legal protections for personal information, defamation, libel, slander, commercial
disparagement, negligent transmission of computer virus, or use of computer networks
in connection with denial of service attacks. Such coverage shall include regulatory
defense and fines/penalties in any jurisdiction anywhere in the world. Such coverage
shall include contractual privacy coverage for data breach response and crisis
management costs that would be incurred by Contractor on behalf of The Government
of the District of Columbia in the event of a data breach including legal and forensic
expenses, notification costs, credit monitoring costs, and costs to operate a call center.
Contractor shall maintain coverage in force during the term of this Agreement and for
an extended reporting period of not less than two (2) years after. .
5. Professional Liability Insurance (Errors & Omissions) - The Contractor shall provide
Professional Liability Insurance (Errors and Omissions) to cover liability resulting from
any error or omission in the performance of professional services under this Contract.
The policy shall provide limits of $1,000,000 per claim or per occurrence for each
wrongful act and $2,000,000 annual aggregate. The Contractor warrants that any
applicable retroactive date precedes the date the Contractor first performed any
professional services for the Government of the District of Columbia and that
continuous coverage will be maintained or an extended reporting period will be
exercised for a period of at least ten years after the completion of the professional
services. Limits may not be shared with other lines of coverage.
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6. Commercial Umbrella or Excess Liability - The Contractor shall provide evidence
satisfactory to the CO of commercial umbrella with minimum limits of $10,000,000
per occurrence and $10,000,000 in the annual aggregate. Coverage must excess of
required commercial general liability, commercial auto liability, and employers’
liability. The insurance required under this paragraph shall be written in a form that
annually reinstates all required limits. Coverage shall be primary to any insurance, self-
insurance or reinsurance maintained by The Government of the District of Columbia
and the “other insurance” provision must be amended in accordance with this
requirement and principles of vertical exhaustion.
7. Crime Insurance (3rd Party Indemnity) - The Contractor shall provide a Crime policy
including 3rd party fidelity to cover the dishonest acts of Contractors, its employees
and/or volunteers which result in a loss to the District. The Government of the District
of Columbia shall be included as loss payee. The policy shall provide a limit of $10,000
per occurrence.
8. Environmental Liability/Contractors Pollution Liability Insurance - The Contractor
shall provide evidence satisfactory to the CO of environmental liability insurance
covering losses caused by pollution or other hazardous conditions arising from ongoing
or completed operations of the Contractor. Such insurance shall apply to bodily injury,
property damage (including loss of use of damaged property or of property that has
been physically injured), clean-up costs, transit and non- owned disposal sites.
Coverage shall extend to defense costs and expenses incurred in the investigation, civil
fines, penalties and damages or settlements. There shall be neither an exclusion nor a
sublimit for mold or fungus-related claims, legionella, asbestos, lead paint, or silica.
The minimum limits required under this paragraph shall be $2,000,000 per occurrence
and $2,000,000 in the annual aggregate. If such coverage is written on a claims-made
basis, the Contractor warrants that any retroactive date applicable to coverages under
the policy precedes the Contractor’s performance of any work under the Contract and
that continuous completed operations coverage will be maintained for at least ten (10)
years or an extended reporting period shall be purchased for no less than ten (10) years
after completion.
The Contractor also must furnish to the CO Owner certificates of insurance evidencing
environmental liability insurance maintained by third party transportation and disposal site
operators(s) used by the Contractor for losses arising from facility(ies) accepting, storing or
disposing hazardous materials or other waste as a result of the Contractor’s operations. Such
coverages must be maintained with limits of at least the amounts set forth above.
The Environmental Liability policy shall be further endorsed to include The Government of
the District of Columbia as an Additional Insured.
9. Installation-Floater Insurance - For projects not involving structural alterations, the
contractor shall provide an installation floater policy with a limit equal to the Property
values being installed as part of the project. The policy shall cover property while
located at the project site, at temporary locations, or in transit; deductibles will be the
sole responsibility of the contractor.
10. Sexual/Physical Abuse & Molestation - The Contractor shall provide evidence
satisfactory to the CO with respect to the services performed that it carries $1,000,000
per occurrence limits; $2,000,000 aggregate of affirmative abuse and molestation
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liability coverage. Coverage should include physical abuse, such as sexual or other
bodily harm and non- physical abuse, such as verbal, emotional, or mental abuse; any
actual, threatened or alleged act; errors, omission or misconduct. This insurance
requirement will be considered met if the general liability insurance includes an
affirmative sexual abuse and molestation endorsement for the required amounts or
through a separate stand-alone sexual abuse and molestation policy with confirmation
there are no exclusions for abuse or assault & battery under the General Liability. So
called “silent” coverage or “shared” limits under a commercial general liability or
professional liability policy will not be acceptable. Limits may not be shared with other
lines of coverage. The applicable policy may need to be submitted to the ORM for
compliance review.
Construction Projects Controlled by the District
For construction projects controlled by the District, the District will procure the following
policies with the District listed as the first named insured. Since the District will control the
placement of the policies, the District should not contractually bind itself to secure coverage
broader than the minimum that satisfies the interests of the Contractor.
Builders Risk – The District shall purchase and maintain, in a company authorized to do
business in the jurisdiction in which the project is located, builders risk insurance, written on
an “all risk”, special causes of loss or equivalent form. Builders risk coverage will include
boiler and machinery / equipment breakdown, earthquake, and flood perils. Building ordnance
and terrorism coverage will be included.
The deductible shall not exceed $50,000 except for earthquake, flood, windstorm, water
damage or other perils at the discretion of the District and as available in the insurance industry.
The deductible for Frame or Joisted Masonry construction shall not exceed $50,000.
The project limit shall equal the replacement value of the structure, including coverage for
property in transit and stored off premises.
At the discretion of the District, builders risk coverage will extend to soft costs and delayed
completion.
Builders risk insurance shall include the interests of The Government of the District of
Columbia, the Contractor, Subcontractors and Sub – subcontractors in the project.
C. SUBCONTRACTOR INSURANCE REQUIREMENTS
Any and all subcontractors engaged by Contractor for work under this agreement shall be
required to have the same insured required of Contractor. Should the Contractor wish to
propose different insurance requirements than outlined below, then, prior to commencement of
work by the subcontractor, the Contractor shall submit in writing the name and brief description
of work to be performed by the subcontractor on the Subcontractors Insurance Requirement
Template provided to the Office of Risk Management (ORM). ORM will determine the
insurance requirements applicable to the subcontractor and promptly deliver such requirements
in writing to the Contractor. In either instance, the Contractor must provide proof of the
subcontractor's required insurance prior to commencement of work by the subcontractor.
D. PRIMARY AND NONCONTRIBUTORY INSURANCE
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The insurance required herein shall be primary to and will not seek contribution from any other
insurance, reinsurance or self -insurance including any deductible or retention, maintained by
the Government of the District of Columbia.
E. DURATION. The Contractor shall carry all required insurance until all contract work
is accepted by The Government of the District of Columbia and shall carry listed
coverages for ten years for construction projects following final acceptance of the work
performed under this contract and two years for non-construction related contracts.
F. LIABILITY. These are the required minimum insurance requirements established by
The Government of the District of Columbia. However, it is understood that The
Government of the District of Columbia does not in any way represent that the
insurance or the limits of insurance specified herein are sufficient or adequate to protect
your interests or liabilities and will not in any way limit the contractor’s liability under
this contract.
G. CONTRACTOR’S PROPERTY. Contractor and subcontractors are solely responsible
for any loss or damage to their personal property, including but not limited to tools and
equipment, scaffolding, and temporary structures, rented machinery, or owned and
leased equipment. A waiver of subrogation shall apply in favor of The Government of
the District of Columbia.
H. Measure of Payment. The Government of the District of Columbia shall not make any
separate measure or payment for the cost of insurance and bonds. The Contractor shall
include all the costs of insurance and bonds in the contract price.
I. NOTIFICATION. The Contractor shall ensure that all policies provide that the CO
shall be given thirty (30) days prior written notice in the event of cancellation, non-
renewal, or material changes to the extent such cancellation or material changes results
in Contractor no long complying with the above requirements. The Contractor shall
provide the CO with ten (10) days’ prior written notice in the event of non-payment of
premium. The Contractor will also provide the CO with an updated Certificate of
Insurance should its insurance coverages renew during the contract. The Government
of the District of Columbia may reasonably change the above insurance coverage
requirements during the Term by giving Contractor at least 30 days’ notice of the
change. Contractor must comply, at your expense, and deliver to the CO evidence of
compliance before the change becomes effective.
J. CERTIFICATES OF INSURANCE. The Contractor must send to CO, at least 10 days
after execution of this Agreement, certificates of insurance evidencing the required
insurance coverage and endorsements required herein. Contractor must also provide us
with evidence of renewal before the expiration date of each insurance policy. Contractor
is responsible for providing us with 30 days advanced written notice if the certificate
of insurance by the insurer has been canceled, reduced in coverage, or otherwise altered.
Certificates of insurance must reference the corresponding contract number. Evidence
of insurance shall be submitted to:
The Government of the District of Columbia
And emailed to the attention of:
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Kianna Shepherd (c/o Makia Efimba)
Contracting Officer
Department of General Services
Contracts & Procurement Division
3924 Minnesota Avenue, NE, 5th Floor
Washington, DC 20019
makia.efimba@dc.gov
The CO may request, and the Contractor shall promptly deliver updated certificates of
insurance, endorsements indicating the required coverages, and/or certified copies of
the insurance policies. If the insurance initially obtained by the Contractor expires prior
to completion of the contract, renewal certificates of insurance and additional insured
and other endorsements shall be furnished to the CO prior to the date of expiration of
all such initial insurance. For all coverage required to be maintained after completion,
an additional certificate of insurance evidencing such coverage shall be submitted to
the CO on an annual basis as the coverage is renewed (or replaced).
K. DISCLOSURE OF INFORMATION. The Contractor agrees that The Government of
the District of Columbia may disclose the name and contact information of its insurers
to any third party which presents a claim against The Government of the District of
Columbia for any damages or claims resulting from or arising out of work performed
by the Contractor, its agents, employees, servants or subcontractors in the performance
of this contract.
L. CARRIER RATINGS. All Contractor’s and its subcontractors’ insurance required in
connection with this contract shall be written by insurance companies with an A.M.
Best Insurance Guide rating of at least A- VII or better (or the equivalent by any other
rating agency) and licensed in the District of Columbia.
M. WARRANTIES. When applicable, t he Contractor should be named as an additional
insured on the applicable manufacturer’s/distributer’s Commercial General Liability
policy using Insurance Services Office, Inc. (“ISO”) form CG 20 15 04 13 (or another
occurrence-based form with coverage at least as broad). CO should collect, review for
accuracy, and maintain all warranties for goods and services.
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Article 12- BONDS
Section 12.1 Performance Bond and Payment Bond.
The Design -Builder shall, before commencing the Construction Phase, provide to the
Department a payment bond and performance bond, each with a penal sum equal to the full
value of the Agreement, NTE or the GMP. Such bond shall remain in full force and effect until
Final Completion is achieved and the Department shall be able to draw upon such bond
regardless of the amount paid by the Department to the Design-Builder, even if such amount
exceeds the penal value of such bond. Unless otherwise directed by the Department, the
Design-Builder shall require all Subcontractors whose Subcontract prices exceed One Hundred
Thousand Dollars ($100,000) to provide payment and performance bonds, with a penal sum
equal to one hundred percent (100%) of the subcontract price. All bonds must be in a form
acceptable to the Department, its lenders or bond trustee, and issued by a surety authorized to
do business in the District of Columbia and bonding company listed on the United States
Department of Treasury’s Listing of Approved Sureties. All subcontractors’ bonds must
include a dual obligee rider, naming the Design-Builder and the Department as dual obligees.
If the GMP is increased pursuant to the terms of the Agreement, the Department may require
that the amount of the bonds be increased in the amount of one hundred percent (100%) of the
increase, and the Design-Builder shall promptly comply. The Design- Builder shall furnish a
copy of its bonds to any potential beneficiary of the bonds or permit that person or company to
make a copy. If the bonds provided become unacceptable to the Department, the Design-
Builder shall promptly provide substitute security acceptable to the Department. If the Design-
Builder intends to exercise its rights as dual obligee under any trade Subcontractor’s bond, it
shall first give the Department twenty (20) days written notice, so that the Department may
lodge any objection it may reasonably have to the proposed action.
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Article 13 - ECONOMIC INCLUSION REQUIREMENTS
Section 13.1 LSDBE Utilization.
If the Design -Builder subcontracts any work, at least 35% of the dollar volume of the
Agreement shall be subcontracted with small business enterprises (“SBE”). If there are
insufficient qualified SBEs then the subcontracting may be satisfied by subcontracting 35% of
the dollar volume to any qualified certified business enterprises (“CBE”) . For subcontracted
work, pass-through entities will not count toward this goal. In order to count toward the
subcontracting requirement, the SBE must perform at least 35% of the work that is being
counted toward the goal with its own forces. The Local, Small, and Disadvantaged Business
Enterprises (“LSDBE”) certification shall be, in each case, as of the effective date of the
applicable subcontract. Supply agreements with material suppliers shall be counted toward
meeting this goal. The Design-Builder has developed a Subcontracting Plan that is attached
hereto as Exhibit D. The Design- Builder shall comply with the terms of the SBE
Subcontracting Plan in making purchases and administering its subcontracts and supply
agreements.
Section 13.2 Mandatory Subcontracting Requirements
Section 13.2.1 Unless the Director of the Department of Small and Local Business
Development (“DSLBD”) has approved a waiver in writing, in accordance with D.C. Official
Code § 2-218.51, for all contracts in excess of $250,000, at least 35% of the dollar volume of
the contract shall be subcontracted to qualified SBEs.
Section 13.2.2 If there are insufficient SBEs to completely fulfill the requirement of Section
13.2.1, then the subcontracting may be satisfied by subcontracting 35% of the dollar volume to
any qualified certified business enterprises (“CBE (s)”); provided, however, that all reasonable
efforts shall be made to ensure that SBEs are significant participants in the overall
subcontracting work.
Section 13.2.3 A prime contractor that is certified by DSLBD as a small, local or
disadvantaged business enterprise shall not be required to comply with the provisions of
Section 13.2.1 and Section13.2.2.
Section 13.2.4 Except as provided in Section 13.2.1 and Section 13.2.2, a prime contractor
that is a CBE and has been granted a proposal preference pursuant to D.C. Official Code § 2-
218.43, or is selected through a set-aside program, shall perform at least 35% of the
contracting effort with its own organization and resources and, if it subcontracts, 35% of the
subcontracting effort shall be with CBEs. A CBE prime contractor that performs less than
35% of the contracting effort shall be subject to enforcement actions under D.C. Official Code
§ 2-218.63.
Section 13.2.5 A prime contractor that is a certified joint venture and has been granted a
proposal preference pursuant to D.C. Official Code § 2- 218.43, or is selected through a set -
aside program, shall perform at least 50% of the contracting effort with its own organization
and resources and, if it subcontracts, 35% of the subcontracting effort shall be with CBEs. A
certified joint venture prime contractor that performs less than 50% of the contracting effort
shall be subject to enforcement actions under D.C. Official Code § 2-218.63.
Section 13.2.6 Each CBE utilized to meet these subcontracting requirements shall perform at
least 35% of its contracting effort with its own organization and resources.
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13.2.7. A prime contractor that is a CBE and has been granted a proposal preference pursuant
to D.C. Official Code § 2- 218.43, or is selected through a set -aside program, shall perform at
least 50% of the on- site work with its own organization and resources if the contract is $1
million or less.
13.2.8. Furniture Fixtures & Equipment (FF&E).
The Contractor shall ensure that maximum competition is sought for the Project’s FF&E
requirements. Additionally, the Contractor shall ensure that qualified vendors certified by the
District’s Department of Small and Local Business Development as small SBEs are provided
an opportunity to offer a bid/proposal for any of the Project’s FF&E requirements. Qualified
vendors can be found on the District’s Office of Contracting Procurement’s (OCP) District of
Columbia Supply Schedule (DCSS) in the Furniture and Furniture Management category
(https://ocp.dc.gov/page/dcss). The Contractor shall ensure that a minimum of three (3)
qualified SBE vendors are provided the FF&E bid package. The Contractor shall document
the distribution of the bid package to all vendors and responses received, including no- bids in
the FF&E Bid Package. Upon selection, the Contractor shall provide an FF&E Selection
Summary to the PM and CO. The FF&E Selection Summary shall include, at a minimum, the
identification of all vendors provided an opportunity to submit a bid/proposal, pricing of
bid/proposals received, identification of selected vendor with a brief explanation of how the
decision was reached, and any other information relevant to the procurement of the Project’s
FF&E vendor.
Section 13.3 Subcontracting Plan (Exhibit D)
If the Design -Builder is required by law to subcontract under this Agreement, then the
subcontracting plan submitted with its Proposal, may only be amended with the prior written
approval of the Contracting Officer and Director of DSLBD, as previously stated herein; and,
any reduction in the dollar volume of the subcontracted portion resulting from an amendment
of the Subcontracting Plan shall inure to the benefit of the District. The Subcontracting Plan
shall include the following:
1. The name and address of each subcontractor;
2. A current certification number of the small or certified business enterprise;
3. The scope of work to be performed by each subcontractor; and
4. The price that the prime contractor will pay each subcontractor.
Section 13.4 Copies of Subcontracts
Within twenty -one (21) days of the date of award, the Contractor shall provide fully
executed copies of all subcontracts identified in the subcontracting plan to the Contracting
Officer (CO), District of Columbia Auditor and the Director of DSLBD.
Section 13.5 Subcontracting Plan Compliance Reporting
Section 13.5.1 If the Contractor has a subcontracting plan required by law for this
contract, the Contractor shall submit a quarterly report to the Contracting Officer, District
of Columbia Auditor, and the Director of DSLBD. The quarterly report shall include the
following information for each subcontract identified in the subcontracting plan:
a. The price that the prime contractor will pay each subcontractor under the
subcontract;
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b. A description of the goods procured or the services subcontracted for;
c. The amount paid by the prime contractor under the subcontract; and
d. A copy of the fully executed subcontract, if it was not provided with an earlier
quarterly report.
Section 13.5.2 If the fully executed subcontract is not provided with the quarterly
report, the prime contractor will not receive credit toward its subcontracting requirements
for that subcontract.
Section 13.6 Annual Meetings
Upon at least 30-days written notice provided by DSLBD, the Contractor shall meet annually
with the CO, CA, District of Columbia Auditor and the Director of DSLBD to provide an
update on its subcontracting plan.
Section 13.7 DSLBD Notices
The Contractor shall provide written notice to the DSLBD and the District of Columbia
Auditor upon commencement of the contract and when the contract is completed.
Section 13.8 Enforcement and Penalties for Breach of Subcontracting Plan
Section 13.8.1 A contractor shall be deemed to have breached a subcontracting plan
required by law if the contractor (i) fails to submit subcontracting plan monitoring or
compliance reports or other required subcontracting information in a reasonably timely
manner; (ii) submits a monitoring or compliance report or other required subcontracting
information containing a materially false statement; or (iii) fails to meet its subcontracting
requirements.
Section 13.8.2 A contractor that is found to have breached its subcontracting plan for
utilization of CBEs in the performance of a contract shall be subject to the imposition of
penalties, including monetary fines in accordance with D.C. Official Code § 2-218.63.
Section 13.8. 3 If the CO determines the Contractor’s failure to be a material breach of the
contract, the CO shall have cause to terminate the contract under the default provisions in
Article 16 of the Contract.
Section 13.8.4 Neither the Design-Builder nor a Subcontractor may remove a Subcontractor
or tier-Subcontractor if such Subcontractor or tier -Subcontractor is certified as an LSDBE
company unless the Department approves of such removal, in writing. The Department may
condition its approval upon the Design-Builder developing a plan that is, in the Department’s
sole and absolute judgment, adequate to maintain the level of LSDBE participation in the
Project.
Section 13.9 Equal Employment Opportunity and Hiring of District Residents
Section 13.9.1 For contracts for services in the amount of $300,000 or more, the Design-
Builder shall comply with the First Source Employment Agreement Act of 1984, as amended,
D.C. Official Code § 2-219.01 et seq. (“First Source Act”).
Section 13.9.2 The Design -Builder shall enter into and maintain during the term of the
Contract, a First Source Employment Agreement ( Exhibit V) with the District of Columbia
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Department of Employment Services (DOES), in which the Design- Builder shall agree that:
(a) The first source for finding employees to fill all jobs created in order to perform the Contract
shall be the First Source Register; and (b) The first source for finding employees to fill any
vacancy occurring in all jobs covered by the Employment Agreement shall be the First Source
Register.
Section 13.9.3 If applicable, the Design-Builder shall comply with subchapter X of Chapter II
of Title 2, and all successor acts thereto, including by not limited to the Workforce Intermediary
Establishment and Reform of First Source Amendment Act of 2011, and the rules and
regulations promulgated thereunder, including, but not limited to the following requirements:
a. At least twenty percent (20%) of Journey worker hours by trade shall be performed by
District residents;
b. At least sixty percent (60%) of apprentice hours by trade shall be performed by District
residents;
c. At least fifty-one percent (51%) of the skilled laborer hours by trade shall be performed
by District residents; and
d. At least seventy percent (70%) of common laborer hours shall be performed by District
residents.
Section 13.9.4 The Design-Builder shall not begin the performance of the Contract until its
Employment Agreement has been accepted by DOES. Once approved, the Employment
Agreement shall not be amended except with the approval of DOES.
Section 13.9.5 The Design-Builder agrees that at least 51% of the new employees hired to
perform the Contract shall be District residents. The Design -Builder shall ensure that at least
fifty-one percent (51%) of the Design- Builder and every sub- consultants and subcontractor’s
employees hired after the effective date of the Agreement, or after such subconsultant or
subcontractor enters into a contract with the Design-Builder, to work on the Project shall be
residents of the District of Columbia. This percentage shall be applied in the aggregate, and not
trade by trade.
Section 13.9.6 The Contractor’s hiring and reporting requirements under the First Source Act
and any rules promulgated thereunder shall continue for the term of the Contract.
Section 13.9.7 The CO may impose penalties, including monetary fines of 5% of the total
amount of the direct and indirect labor costs of the Contract, for a willful breach of the
Employment Agreement, failure to submit the required hiring compliance reports, or deliberate
submission of falsified data.
Section 13.9.8 If the Design- Builder does not receive a good faith waiver, the CO may also
impose an additional penalty equal to 1/8 of 1% of the total amount of the direct and indirect
labor costs of the Contract for each percentage by which the Design-Builder fails to meet its
hiring requirements.
Section 13.9.9 Any contractor which violates, more than once within a 10-year timeframe, the
hiring or reporting requirements of the First Source Act shall be referred for debarment for not
more than five (5) years.
Section 13.9.10 The Design-Builder may appeal any decision of the CO pursuant to this clause
to the DC Contract Appeals Board located at 441 4th Street, NW, Suite 350N, Washington,
DC 20001.
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Section 13.9.11 The provisions of the First Source Act do not apply to nonprofit organizations
which employ 50 employees or less.
Section 13.9.12 Construction projects or contracts covered by this Section 4.2.8 of the Contract
shall be subject to the hiring and reporting requirements set forth in this Section until
construction is completed and a final certificate of occupancy has been issued.
Section 13.10 Economic Inclusion Reporting Requirements
Section 13.10.1 Upon execution of the Agreement, the Design- Builder and all its member
firms, if any, and each of its Subcontractors shall submit to the Department a list of current
employees and apprentices that will be assigned to the Agreement, the date they were hired
and whether or not they live in the District of Columbia.
Section 13.10.2 The Design-Builder and its constituent entities shall comply with subchapter
X of Chapter II Title 2, and subchapter II of Chapter 11 of Title 1 of the D.C. Code, and all
successor acts thereto and the rules and regulations promulgated thereunder. The Design-
Builder and all member firms and Subcontractors shall execute a First Source Agreement with
the District of Columbia Department of Employment Services (“DOES”) prior to beginning
work at the Project site.
Section 13.10.3 The Design-Builder shall maintain detailed records relating to the general
hiring of District of Columbia and community residents.
Section 13.10.4 The Design-Builder shall be responsible for: (i) including the provisions of
Section 9.3 in all subcontracts; (ii) collecting the information required in Section 9.3 from its
Subcontractors; and (iii) providing the information collected from its Subcontractors in the
reports required to be submitted by the Design-Builder pursuant to Section 9.3.
Section 13.10.5. Reserved.
Section 13.10.6 Living Wage Act. In addition to the requirements set forth in the First Source
Employment Agreement, the Design- Builder shall comply with all applicable provisions of
the Living Wage Act of 2006, Exhibit Q, as amended (codified at D.C. Official Code §§ 2-
220.01 et seq.) and its implementing regulations.
Section 13.10.7 Apprenticeship Act. The D.C. Apprenticeship Act of D.C. Law 2-156,
(as amended, the Act) may apply to these Projects. As applicable, the Design- Builder firms
and their subcontractors selected to perform work on the Projects on a craft-by-craft basis may
be required to comply with the Act. If applicable, all terms and conditions of the D.C.
Apprenticeship Council Rules and Regulations shall be implemented, and the selected Design-
Builder firms shall be liable for any subcontractor non- compliance. Thirty five percent (35%)
of all apprentice hours worked on the Project shall be performed by District residents.
Section 13.11 WAY TO WORK AMENDMENT ACT OF 2006
Section 13.11.1. Except as described in Section 13.14.8 below, the Design- Builder shall
comply with Title I of the Way to Work Amendment Act of 2006, effective June 8, 2006 (D.C.
Law 16-118, D.C. Official Code §2-220.01 et seq.) (“Living Wage Act of 2006”), for contracts
for services in the amount of $100,000 or more in a 12-month period.
Section 13.11.2 The Design-Builder shall pay its employees and subcontractors who perform
services under the Contract no less than the current living wage.
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Section 13.11.3 The Design-Builder shall include in any subcontract for $15,000 or more a
provision requiring the subcontractor to pay its employees who perform services under the
Contract no less than the current living wage rate.
Section 13.11.4 The DOES may adjust the living wage annually and Design-Builder will find
the current living wage rate on its website at www.does.dc.gov.
Section 13.11.5 The Design-Builder shall provide a copy of the Fact Sheet attached within
Exhibit Q to each employee and subcontractor who performs services under the Contract. The
Design-Builder shall also post the Notice attached within Exhibit Q in a conspicuous place in
its place of business. The Design-Builder shall include in any subcontract for $15,000 or more
a provision requiring the subcontractor to post the Notice in a conspicuous place in its place of
business.
Section 13.11.6 The Design-Builder shall maintain its payroll records under the Contract in
the regular course of business for a period of at least three (3) years from the payroll date, and
shall include this requirement in its subcontracts for $15,000 or more under the Contract.
Section 13.11.7 The payment of wages required under the Living Wage Act of 2006 shall be
consistent with and subject to the provisions of D.C. Official Code §32-1301 et seq.
Section 13.11.8 The requirements of the Living Wage Act of 2006 do not apply to:
1. Contracts or other agreements that are subject to higher wage level determinations
required by federal law;
2. Existing and future collective bargaining agreements, provided, that the future
collective bargaining agreement results in the employee being paid no less than the
established living wage;
3. Contracts for electricity, telephone, water, sewer or other services provided by a
regulated utility;
4. Contracts for services needed immediately to prevent or respond to a disaster or
imminent threat to public health or safety declared by the Mayor;
5. Contracts or other agreements that provide trainees with additional services including,
but not limited to, case management and job readiness services; provided that the
trainees do not replace employees subject to the Living Wage Act of 2006;
6. An employee under 22 years of age employed during a school vacation period, or
enrolled as a full-time student, as defined by the respective institution, who is in high
school or at an accredited institution of higher education and who works less than 25
hours per week; provided that he or she does not replace employees subject to the
Living Wage Act of 2006;
7. Tenants or retail establishments that occupy property constructed or improved by
receipt of government assistance from the District of Columbia; provided, that the
tenant or retail establishment did not receive direct government assistance from the
District;
8. Employees of nonprofit organizations that employ not more than 50 individuals and
qualify for tax exemption pursuant to section 501(c)(3) of the Internal Revenue Code
of 1954, approved August 16, 1954 (68A Stat. 163; 26 U.S.C. § 501(c)(3);
9. Medicaid provider agreements for direct care services to Medicaid recipients, provided,
that the direct care service is not provided through a home care agency, a community
residence facility, or a group home for mentally retarded persons as those terms are
defined in section 2 of the Health- Care and Community Residence Facility, Hospice,
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and Home Care Licensure Act of 1983, effective February 24, 1984 (D.C. Law 5- 48;
D.C. Official Code § 44-501); and
10. Contracts or other agreements between managed care organizations and the Health Care
Safety Net Administration or the Medicaid Assistance Administration to provide health
services.
Section 13.11.9 The Mayor may exempt a contractor from the requirements of the Living
Wage Act of 2006, subject to the approval of the Council, in accordance with the provisions of
Section 109 of the Living Wage Act of 2006.
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Article 14 - LIQUIDATED DAMAGES
Section 14.1 Reserved.
Section 14.2 Delay in Substantial Completion.
If the Design-Builder fails to achieve Substantial Completion of the Project by the Substantial
Completion Date, the Parties acknowledge and agree that the actual damage to the Department
for the delay will be impossible to determine, and in lieu thereof, the Design-Builder shall pay
to the Department, as fixed, agreed and liquidated delay damages in the amount set forth in the
Project Information Section of this Agreement per day for each calendar day of delay for failure
to meet the applicable Substantial Completion Date.
The Design-Builder and the Department agree that the liquidated damages set forth in this
Article do not constitute, and shall not be deemed, a penalty but represent a reasonable
approximation of the damages to the Department associated with a delay in the Project. These
damages shall not apply if the delay is the result of force majeure and the Design- Builder
otherwise complies with the provisions set forth in the Standard Contract Provisions
(Construction Contracts and Architectural/Engineering Services Contracts).
Section 14.3 Early Completion. In the event the Design -Builder achieves Substantial
Completion of the Project prior to the Substantial Completion Date, the Design- Builder shall
maintain the completed Project, at its own expense, until such time that the Department agrees
to occupy and use the Project for its intended use.
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Article 15 - MISCELLANEOUS PROVISIONS
Section 15.1 Ownership and Use of Project Documents. The Drawings, Specifications, and
other Project Documents prepared by the Design -Builder’s Architect and copies thereof
furnished to the Design-Builder, are for use solely with respect to this Project. They are not to
be used by the Design- Builder, Subcontractors, Sub- subcontractors, or suppliers on other
projects, or for additions to this Project outside the scope of the Work, without the specific
written consent of the Department, and the Design -Builder’s Architect. The referenced
Drawing, Specifications , and other Project Documents shall become the property of the
Department. The District will be the sole owner of all project drawings, specifications, and
other Project Documents, and the Design-Builder shall provide the District with a complete set
of “as-built” within sixty (60) days of final completion.
Section 15.2 Assignment.
The Department and Design- Builder respectively bind themselves, their partners, members,
joint venturers, constituent entities, successors, assigns and legal representatives to the other
party hereto and to partners, members, joint venturers, constituent entities, successors, assigns,
and legal representatives of such other party in respect to covenants, agreements , and
obligations contained in the Agreement. Neither party to the Agreement shall assign the
Agreement or its rights and obligations under the Agreement, without the written consent of
the other party. If either party attempts to make such an assignment without such consent, that
party shall nevertheless remain legally responsible for all obligations under the Agreement.
Section 15.3 BUY AMERICAN ACT PROVISIONS
The Design-Builder shall comply with the provisions of the Buy American Act ( 41 U.S.C. §§
8301–8305), including, but not limited to, the purchase of steel. To the extent that the language
in this section contradicts the language under Article 24 of The Department Standard Contract
Provisions for Construction Contracts and Article 15 (C) of the Department Standard Contract
Provisions for Architectural and Engineering Services Contracts (Exhibit J) regarding
compliance with the Buy American Act, the language in this section should supersede.
Section 15.3.1 In accordance with the Buy American Act ( 41 U.S.C. §§ 8301–8305), and
Executive Order 10582, December 17, 1954 (3 CFR, 1954-58 Comp., p. 230), as amended
by Executive Order 11051, September 27, 1962 (3 CFR, 1059—63 Comp., p. 635), the
Design-Builder agrees that only domestic construction material will be used by the Design-
Builder, subcontractors, material men and suppliers in the performance of the Agreement,
except for non-domestic material listed in the Agreement.
“Components” as used in this Section, means those articles, materials and supplies
incorporated directly into the end products.
“Domestic end product”, as used in this section, means, (1) an unmanufactured end
product mined or produced in the United States, or (2) an end product manufactured in
the United States, if the cost of its components mined, produced, or manufactured in
the United States, exceeds 65 percent of the cost of all its components. For an end
product that consists wholly or predominantly of iron or steel or a combination of both,
the cost of foreign iron and steel must constitute less than 5 percent of the cost of all
the components used in the end product.
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Components of foreign origin of the same class or kind as the products shall be treated
as domestic. Scrap generated, collected, and prepared for processing in the Unites States
is considered domestic.
“End Products”, as used in this Section, means those articles, materials, and supplies to
be acquired for public use under this Contract.
The Design-Builder shall deliver only domestic end products, except those:
1. For use outside the United States;
2. That the District determines are not mined, produced, or
manufactured in the United States in sufficient and reasonably
available commercial quantities of a satisfactory quality;
3. For which the District determines that domestic preference would be
inconsistent with the public interest; or
4. For which the District determines the cost to be unreasonable.
Section 15.3.2 Domestic Construction Material. “Construction material” means any article,
material, or supply brought to the construction site for incorporation in the building or work.
An unmanufactured construction material is a “domestic construction material” if it has been
mined or produced in the United States. A manufactured construction material is a “domestic
construction material” if it has been manufactured in the United States and if the cost of its
components which have been mined, produced, or manufactured in the United States exceeds
65 percent of the cost of all its components. “Component” means any article, material, or supply
directly incorporated in construction material. If the construction material consists wholly or
predominantly of iron or steel, the iron or steel was produced in the United States ; or, f or
construction material that consists wholly or predominantly of iron or steel or a combination
of both, a construction material manufactured in the United States if the cost of foreign iron
and steel constitutes less than 5 percent of the cost of all the components used in such
construction material.
Section 15.3.3 Domestic Component. A component shall be considered to have been “mined,
produced, or manufactured in the United States” regardless of its source, in fact, if the article,
material, or supply in which it is incorporated was manufactured in the United States and the
component is of a class or kind determined by the Government to be not mined, produced or
manufactured in the United States in sufficient and reasonably available commercial quantities
and of satisfactory quality.
Section 15.3.4 Foreign Construction Material. “Foreign construction material” means a
construction material other than a domestic construction material.
Section 15.4 Davis-Bacon Act Wage Determination and Title 29 CFR 5.5 Davis Bacon
Provision.
The Design-Builder agrees that the construction work performed under this Agreement shall
be subject to the Davis -Bacon Act (40 U.S.C. §§ 3142-3148), Exhibit G1 and Title 29 Code
of Federal Regulations (“CFR”) part 5.5 Davis Bacon Provision Exhibit G2 . The wage rates
applicable to this Project are attached as Exhibits G1 and G2. The Design- Builder further
agrees that it and all of its subcontractors shall comply with the regulations implementing the
Davis-Bacon Act and Title 29 CFR and such regulations are hereby incorporated by reference.
At such time as the Design-Builder is preparing its GMP, the Design-Builder shall include the
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current Davis-Bacon wage rates in its GMP.
Section 15.5 The Quick Payment Clause
Section 15.5.1 Interest Penalties to Contractors
Section 15.5.1.1 The District will pay interest penalties on amounts due to the Design -
Builder under the Quick Payment Act, D.C. Official Code §2-221.01 et seq., as amended, for
the period beginning on the day after the required payment date and ending on the date on
which payment of the amount is made. Interest shall be calculated at the rate of 1.5% per
month. No interest penalty shall be paid if payment for the completed delivery of the item of
property or service is made on or before the required payment date. The required payment
date shall be:
a. The date on which payment is due under the terms of the Contract;
b. Not later than 7 calendar days, excluding legal holidays, after the date of delivery of
meat or meat food products;
c. Not later than 10 calendar days, excluding legal holidays, after the date of delivery of
a perishable agricultural commodity; or
d. 30 calendar days, excluding legal holidays, after receipt of a proper invoice for the
amount of the payment due, if a specific date on which payment is due is not
established by contract;
Section 15.5.1.2 Any amount of an interest penalty which remains unpaid at the end of any 30-
day period shall be added to the principal amount of the debt and thereafter interest penalties
shall accrue on the added amount.
Section 15.5.1.3 No interest penalty shall be due to the Design- Builder if payment for the
completed delivery of goods or services is made on or after:
a. 3rd day after the required payment date for meat or a meat food product;
b. 5th day after the required payment date for an agricultural commodity; or
c. 15th day after any other required payment date in the case of any other item.
Section 15.5.2 Payments to Subcontractors
Section 15.5.2.1 The Design -Builder must take one of the following actions within
seven (7) days of receipt of any amount paid to the Design- Builder by the District for
work performed by any subcontractor under this contract:
a. Pay the subcontractor for the proportionate share of the total payment received
from the District that is attributable to the subcontractor for work performed
under the Contract; or
b. Notify the Contracting Officer and the subcontractor, in writing, of the Design-
Builder’s intention to withhold all or part of the subcontractor’s payment and
state the reason for the nonpayment.
Section 15.5.2.2 The Design -Builder must pay any subcontractor or supplier interest
penalties on amounts due to the subcontractor or supplier beginning on the day after the
payment is due and ending on the date on which the payment is made. Interest shall be
calculated at the rate of 1.5% per month. No interest penalty shall be paid on the
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following if payment for the completed delivery of the item of property or service is
made on or before:
a. The 3rd day after the required payment date for meat or a meat product;
b. The 5th day after the required payment date for an agricultural commodity; or
c. The 15th day after the required payment date for any other item.
Section 15.5.2.3 Any amount of an interest penalty that remains unpaid by the Design-
Builder at the end of any 30- day period shall be added to the principal amount of the
debt to the subcontractor and thereafter interest penalties shall accrue on the added
amount.
Section 15.5.2.4 A dispute between the Design-Builder and subcontractor relating to
the amounts or entitlement of a subcontractor to a payment or a late payment interest
penalty under the Quick Payment Act does not constitute a dispute to which the District
of Columbia is a party. The District may not be interpleaded in any judicial or
administrative proceeding involving such a dispute.
Section 15.5.3 Subcontractor Quick Payment Clause Flow-Down Requirements
Section 15.5.3.1 The Design -Builder shall include in each subcontract under this
Contract a provision requiring the subcontractor to include in its contract with any
lower-tier subcontractor or supplier the payment and interest clauses required under
paragraphs (1) and (2) of D.C. Official Code §2-221.02(d).
Section 15.5.4 Requirements for Change Order Payments
Section 15.5.4.1 The Department and the Design-Builder are prohibited from requiring
the a Prime Contractor or a subcontractor to undertake any work that is determined to
be beyond the original scope of the Prime Contractor's or a subcontractor's contract or
subcontract, including work under a District-issued change order, when the additional
work increases the contract price beyond the not -to-exceed price or negotiated
maximum price of the underlying contract, unless the Contracting Officer:
a. Agrees with the Prime Contractor and, if applicable, the subcontractor on a price
for the additional work;
b. Obtains a certification from the Chief Financial Officer that there are sufficient
funds to compensate the Prime Contractor and, if applicable, the subcontractor
for the additional work;
c. Has made a written, binding commitment with the Prime Contractor to pay for
the additional work within 30 days after the Prime Contractor submits a proper
invoice for the additional work to the CO; and
d. Gives written notice of the funding certification from the Chief Financial
Officer to the Prime Contractor;
Section 15.5.4.2 The Design-Builder is required to include in its subcontracts a clause
that requires the Prime Contractor to:
a. Within 5 business days of receipt of the notice required under subparagraph
(A)(iv) of this paragraph, provide the subcontractor with notice of the approved
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amount to be paid to the subcontractor based on the portion of the additional
Work to be completed by the subcontractor;
b. Pay the subcontractor any undisputed amount to which the subcontractor is
entitled for any additional work within 10 days of receipt of payment for the
additional Work from the District; and
c. If the Prime Contractor withholds payment from a subcontractor, notify the
subcontractor in writing and state the reason why payment is being withheld
and provide a copy of the notice to the CO.
Section 15.5.4.3 The Department, Design -Builder, Design-Builder Architects, or a
subcontractor are prohibited from declaring another party to the contract to be in default
or assessing, claiming, or pursuing damages for delays in the completion of the
construction due to the inability of the parties to agree on a price for the additional
work.
Section 15.5.4.4 Authorized Changes By The Contracting Officer
a. The CO is the only person authorized to approve changes in any of the
requirements of this Contract.
b. The Design-Builder shall not comply with any order, directive , or request that
changes or modifies the requirements of this Contract unless issued in writing
and signed by the CO.
c. In the event the Design-Builder effects any change at the instruction or request
of any person other than the CO, the change will be considered to have been
made without authority and no adjustment will be made in the Contract price to
cover any cost increase incurred as a result thereof.
Section 15.6 Contract Work Hours and Safety Standards Act Provision. The Design-
Builder agrees that the applicable work performed under this Agreement shall be subject to the
Contract Work Hours and Safety Standards Act (40 U.S.C. §§ 327-333).
Section 15.7 False Claims Act. Design -Builder shall be governed by all laws and
regulations prohibiting false or fraudulent statements and claims made to the DC government,
including the prescriptions set forth in District of Columbia Code Official Code §22-2514 and
§§2-381.01 et seq. In the event that it is discovered that the Design -Builder has made a false,
fraudulent, or unsupported statement or claim to the Department, the Department may
terminate this Agreement without liability.
Section 15.8 Interpretation of Contract and Order of Precedence. All of the Project
documents comprising the Agreement should be read as complementary so that what is called
for by one is called for by all. Ambiguities shall be construed in favor of a broader scope of
Work for the Design-Builder, as the intent of the Agreement is, with specifically identified
exceptions, to require the Design- Builder to assume entire responsibility for the construction
of the Project. If there is any inconsistency among the Project documents comprising the
Agreement, the order of precedence among them is as follows, with the first listed Project
document having the highest priority:
1. This Agreement and its Modifications, Change Orders, Change Directives and any
Exhibits thereto;
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2. The Department’s Standard Contract Provisions ( Construction Contracts and
Architectural/Engineering Services Contracts) , as amended, and any missing term in
this Agreement shall be addressed in accordance with the Standard Contract Provisions;
and
3. The Construction documents released or approved by the Department.
Section 15.9 Independent Contractor. The Design -Builder and the Design- Builder’s
employees: (1) shall perform the services specified herein as independent contractors, not as
employees or agent of the District, or joint venture or partner with the District; (2) shall be
responsible for their own management and administration of the work required and bear sole
responsibility for complying with any and all technical, schedule, financial requirements or
constraints attendant to the performance of this Agreement; (3) shall be free from supervision
or control by any government employee with respect to the manner or method of performance
of the service specified; but (4) shall, pursuant to the government’s right and obligation to
inspect, accept or reject work, comply with such general direction of the CO, or the duly
authorized representative of the CO as is necessary to ensure accomplishment of the Agreement
objectives. The Design-Builder shall have exclusive authority to manage, direct, and control
the work, and shall be responsible for all means, methods, techniques, sequences, and
procedures, as well as for Project safety.
Section 15.10 No Third -Party Beneficiary Rights. Nothing in this Agreement shall be
construed as creating third-party beneficiary rights in any person or entity, except as otherwise
expressly provided in this Agreement.
Section 15.11 Media Releases. Neither the Design -Builder, its employees, agents or
Subcontractors or material suppliers shall make any press release or similar media release
related to the Project unless such press release have been discussed with the Department prior
to its issuance.
Section 15.12 Construction. This Agreement shall be construed fairly as to all Parties and
not in favor of or against any party, regardless of which party prepared the Agreement.
Section 15.13 Notices. All notices or communications required or permitted under the
Agreement shall be in writing and shall be hand delivered or sent by telecopier or by recognized
overnight carrier to the intended recipient at the address stated below, or to such other address
as the recipient may have designated in writing. Any such notice or communication shall be
deemed delivered as follows: if hand delivered, on the day so delivered, if sent by telecopier,
on confirmation of successful transmission, and if sent by recognized overnight carrier, the
next business day.
If to the Department: If to the Design-Builder:
Eric Njonjo,
Deputy Chief Procurement Officer
Department of General Services
3924 Minnesota Avenue NE, 5th Floor
Washington, DC 20019
This Section shall be read as imposing minimum requirements for distribution of required
contractual notices, and not as displacing distribution requirements with respect to design
documents, construction submittals, periodic reports, and other Project documents.
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Section 15.14 Survival. All agreements warranties and representations of the Design-Builder
contained in the Agreement or in any certificate or Project document furnished pursuant to the
Agreement shall survive termination or expiration of the Agreement.
Section 15.15 No Waiver. If the Department waives any power, right, or remedy arising from
the Agreement or any applicable law, the waiver shall not be deemed to be a waiver of the
power, right, or remedy on the later recurrence of any similar events. No act, delay, or course
of conduct by the Department shall be deemed to constitute the Department's waiver, which
may be effected only by an express written waiver signed by the Department.
Section 15.16 Remedies Cumulative. Unless specifically provided to the contrary in the
Agreement, all remedies set forth in the Agreement are cumulative and not exclusive of any
other remedy the Department may have, including, without limitation, at law or in equity. The
Department's rights and remedies will be exercised at its sole discretion, and shall not be
regarded as conferring any obligation on the Department to exercise those rights or remedies
for the benefit of the Design-Builder or any other person or entity.
Section 15.17 Headings/Captions. The headings or captions used in this Agreement or its
table of contents are for convenience only and shall not be used in interpreting the Agreement.
Section 15.18 Entire Agreement; Modification. The Agreement supersedes all
contemporaneous or prior negotiations, representations, course of dealing, or agreements,
either written or oral. No modifications to the Agreement shall be effective against the
Department unless made in writing and signed by both the Department and the Design-Builder,
unless otherwise expressly provided to the contrary in the Agreement. Notwithstanding the
foregoing, nothing herein shall be construed to limit the Department’s ability to unilaterally
modify the Agreement.
Section 15.19 Severability. In the event any one or more of the provisions contained in this
Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provision of this
Agreement, and in lieu of each such invalid, illegal or unenforceable provision, there shall be
added automatically as a part of this Agreement a provision as similar in terms to such invalid,
illegal or unenforceable provision as may be possible and be valid, legal and enforceable; each
part of this Agreement is intended to be severable.
Section 15.20 Anti-Deficiency Acts. The obligations and responsibilities of the Department
under the terms of the Agreement, or any subsequent agreement entered into pursuant to this
Agreement or referenced herein (to which the Department is a party), are and shall remain
subject to the provisions of: (i) the federal Anti-Deficiency Act, 31 U.S.C. §§ 1341, 1342,
1349-1351, 1511-1519 (2004) (the “Federal ADA”), and D.C. Official Code §§ 1- 206.03(e)
and 47-105 (2001); (ii) the District of Columbia Anti -Deficiency Act, D.C. Official Code §§
47-355.01 – 355.08 (2004 Supp.)(the “ D.C. ADA” and (i) and (ii) collectively, as amended
from time to time, the “ Anti- Deficiency Acts ”); and (iii) Section 446 of t he District of
Columbia Home Rule Act, D.C. Official Code § 1- 204.46 (2001). Pursuant to the Anti -
Deficiency Acts, nothing in this Agreement shall create an obligation of the Department in
anticipation of an appropriation by Congress for such purpose, and the Department’s legal
liability for payments and other charges under this Agreement shall not arise or obtain in
advance of the lawful availability of appropriated funds for the applicable fiscal year as
approved by Congress. IN ACCORDANCE WITH § 446 OF THE HOME RULE ACT,
D.C. CODE § 1-204.46, NO DISTRICT OF COLUMBIA OFFICIAL IS AUTHORIZED
TO OBLIGATE OR EXPEND ANY AMOUNT UNDER THE AGREEMENT OR
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CONTRACT DOCUMENTS UNLESS SUCH AMOUNT HAS BEEN APPROVED, IS
LAWFULLY AVAILABLE, AND APPROPRIATED BY ACT OF CONGRESS.
Section 15.20.1 The Department agrees to exercise all lawful authority available to it to satisfy
the financial obligations of the Department that may arise under this Agreement. During the
term of this Agreement, the Mayor of the District of Columbia or other appropriate official
shall, for each fiscal period, include in the budget application submitted to the Council of the
District of Columbia the amount necessary to fund the Department’s known potential financial
obligations under this Agreement for such fiscal period. In the event that a request for such
appropriations is excluded from the budget approved by the Council and submitted to Congress
by the President for the applicable fiscal year or if no appropriation is made by Congress to pay
any amounts due under this Agreement for any period after the fiscal year for which
appropriations have been made, and in the event appropriated funds for such purposes are not
otherwise lawfully available, the Department will not be liable to make any payment under this
Agreement upon the expiration of any then-existing appropriation, the Department shall
promptly notify the Contractor and this Agreement shall immediately terminate upon the
expiration of any then-existing appropriation.
Section 15.20.2 Notwithstanding the foregoing, no officer, employee, director, member or
other natural person or agent of the District or Department shall have any personal liability in
connection with the breach of the provisions of this Section or in the event of non-payment by
the Department under this Agreement.
Section 15.20.3 This Agreement shall not constitute an indebtedness of the District and/or the
Department nor shall it constitute an obligation for which the Department is obligated to levy
or pledge any form of taxation or for which the District has levied or pledged any form of
taxation. No District of Columbia Official or employee is authorized to obligate or expend any
amount under this Agreement unless such amount has been appropriated by Act of Congress
and is lawfully available.
Section 15.21 Time. Time, if stated in a number of days, will be calendar days and thus
include Saturdays, Sundays, and holidays, unless otherwise stated herein.
Section 15.22 Americans With Disabilities Act of 1990 (“ADA”). During the performance
of this Contract, the Design-Builder and any of its Subcontractors shall comply with the ADA.
The ADA makes it unlawful to discriminate in employment against a qualified individual with
a disability. See 42 U.S.C. §12101 et seq.
Section 15.23 Contracts in Excess of One Million Dollars . Any contract in excess of
$l,000,000 shall not be binding or give rise to any claim or demand against the District until
approved by the Council of the District of Columbia and signed by the Contracting Officer.
Section 15.24 Gratuities Not to Benefit Provisions.
If it is found, after notice and hearing, by the Department that gratuities (in the form of
entertainment, gifts, payment, offers of employment, or otherwise) were offered or given by
the Design -Builder, or any agent or representative of the Design- Builder, to any official,
employee or agent of the Department or the District with a view toward securing the
Agreement or any other contract or securing favorable treatment with respect to the awarding
or amending, or the making of any determinations with respect to the performance of the
Agreement, the Department may, by written notice to the Design-Builder, terminate the right
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of the Design-Builder to proceed under the Agreement and may pursue such other rights and
remedies provided by law and under the Agreement.
Section 15.24.1 In the event the Agreement is terminated as provided in Article 16 of this
Agreement, the Department shall be entitled:
a. to pursue the same remedies against the Design-Builder as it could pursue in the event
of a breach of the Agreement by the Design-Builder; and
b. as a penalty in addition to any other damages to which it may be entitled by law, to
exemplary damages in an amount (as determined by the Department) which shall be
not less than ten times the costs incurred by the Design- Builder in providing any such
gratuities.
Section 15.24.2 No member of, nor delegate to Congress, Mayor or City Council Member, nor
the Department nor employee of the District or employee of the Department shall be admitted
to any share or part of the Agreement or to any benefit that may arise therefrom, and all
agreements entered into by the CO of the Department in which he or she be personally
interested as well as all agreements made by the Department in which the Mayor or City
Council Member or employee of the District shall be personally interested shall be void and
no payments shall be made on any such contracts by the Department; but this provision shall
not be construed or extend to the agreement if the share of or benefit to the member of, or
delegate to Congress, Mayor or City Council Member, or employee of the District is de
minimis.
Section 15.25 Ethical Standards for the Department's Employees And Former
Employees. The Department expects the Design -Builder to observe the highest ethical
standards and to comply with all applicable laws , rules, and regulations governing ethical
conduct or conflicts of interest. Neither the Design-Builder, nor any person associated with the
Design-Builder, shall provide (or seek reimbursement for) any gift, gratuity, favor,
entertainment, loan, or other thing of value to any employee of the District or the Department
not in conformity with applicable law, rules or regulations. The Design- Builder shall not
engage the services of any person or persons in the employment of the Department or the
District for any work required, contemplated, or performed under the Agreement. The Design-
Builder may not assign to any former employee or District employee or agent who has joined
the Design-Builder’s firm any matter on which the former employee, while employed by the
Department, had material or substantial involvement in the matter. The Design -Builder may
request a waiver to permit the assignment of such matters to former personnel on a case -by-
case basis. The Design -Builder shall include in every subcontract a provision substantially
similar to this section so that such provisions shall be binding upon ea ch Design-Builder or
vendor.
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Section 15.26 Non-Discrimination in Employment Provisions.
Section 15.26.1 District of Columbia Human Rights Act
a. The Design -Builder shall not discriminate in any manner against any employee or
applicant for employment that would constitute a violation of the District of Columbia
Human Rights Act, effective December 13, 1977, as amended (D.C. Law 2-38; D.C.
Official Code § 2-1401.01 et seq.) (“Act”, as used in this clause). The Design-Builder
shall include a similar clause in all subcontracts, except subcontracts for standard
commercial supplies or raw materials. In addition, the Design-Builder agrees, and any
subcontractor shall agree, to post in conspicuous places, available to employees and
applicants for employment, a notice setting forth the provisions of this non-
discrimination clause as provided in Section 251 of the Act.
b. Pursuant to Mayor’s Order 85- 85, (6/10/85), Mayor’s Order 2002- 175 (10/23/02),
Mayor’s Order 2011-155 (9/9/11) and the rules of the Office of Human Rights, Chapter
11 of Title 4 of the D.C. Municipal Regulations, the following clauses apply to the
Contract:
1. The Design-Builder shall not discriminate against any employee or applicant
for employment because of race, color, religion, national origin, sex, age,
marital status, personal appearance, sexual orientation, family responsibilities,
matriculation, political affiliation, or physical handicap.
2. The Design-Builder agrees to take affirmative action to ensure that applicants
are employed, and that employees are treated during employment, without
regard to their race, color, religion, national origin, sex, age, marital status,
personal appearance, sexual orientation, family responsibilities, matriculation,
political affiliation, or physical handicap. The affirmative action shall include,
but not be limited to, the following:
i. Employment, upgrading, or transfer;
ii. Recruitment or recruitment advertising;
iii. Demotion, layoff, or termination;
iv. Rates of pay, or other forms of compensation; and
v. Selection for training and apprenticeship.
3. Unless otherwise permitted by law and directed by the Department, the Design-
Builder agrees to post in conspicuous places, available to employees and
applicants for employment, notices to be provided by the Department setting
forth the provisions paragraphs 1 and 2 of Section 15.26.1(b) of this
Agreement, concerning non-discrimination and affirmative action.
4. The Design-Builder shall, in all solicitations or advertisements for employees
placed by or on behalf of the Design-Builder, state that all qualified applicants
will receive consideration for employment pursuant to the non- discrimination
requirements set forth in Section 15.26.3.
5. The Design -Builder agrees to send to each labor union or representative of
workers with which it has a collective bargaining agreement, or other contract
or understanding, a notice to be provided by the Department, advising each
labor union or workers' representative of the Design-Builder’s commitments
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under this Section 15.26.1, and shall post copies of the notice in conspicuous
places available to employees and applicants for employment.
6. The Design-Builder agrees to permit access by the Department to all books,
records and accounts pertaining to its employment practices for purposes of
investigation to ascertain compliance with this Section 15.26.1, and to require
under terms of any Subcontractor agreement each Subcontractor to permit
access of the Subcontractors, books, records, and accounts for such purposes.
7. The Design -Builder shall include in every subcontract this Section 15.26.1
so that such provisions shall be binding upon each subcontractor or vendor.
8. The Design-Builder shall take such action with respect to any subcontract as
the CO may direct as a means of enforcing these provisions, including sanctions
for noncompliance; provided, however, that in the event the Design- Builder
becomes involved in, or is threatened with, litigation with a Subcontractor or
vendor as a result of such direction by the Department, the Design-Builder may
request the District to enter into such litigation to protect the interest of the
District.
Section 15.26.2 Pregnant Workers Fairness
a. The Design-Builder shall comply with the Protecting Pregnant Workers Fairness Act
of 2016, D.C. Official Code § 32-1231.01 et seq. (PPWF Act).
b. The Design-Builder shall not:
1. Refuse to make reasonable accommodations to the known limitations related to
pregnancy, childbirth, related medical conditions, or breastfeeding for an
employee, unless the Design-Builder can demonstrate that the accommodation
would impose an undue hardship;
2. Take an adverse action against an employee who requests or uses a reasonable
accommodation in regard to the employee's conditions or privileges of
employment, including failing to reinstate the employee when the need for
reasonable accommodations ceases to the employee's original jo b or to an
equivalent position with equivalent:
i. Pay;
ii. Accumulated seniority and retirement;
iii. Benefits; and
iv. Other applicable service credits;
3. Deny employment opportunities to an employee, or a job applicant, if the denial
is based on the need of the employer to make reasonable accommodations to
the known limitations related to pregnancy, childbirth, related medical
conditions, or breastfeeding;
4. Require an employee affected by pregnancy, childbirth, related medical
conditions, or breastfeeding to accept an accommodation that the employee
chooses not to accept if the employee does not have a known limitation related
to pregnancy, childbirth, related medical conditions, or breastfeeding or the
accommodation is not necessary for the employee to perform her duties;
5. Require an employee to take leave if a reasonable accommodation can be
provided; or
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6. Take adverse action against an employee who has been absent from work as a
result of a pregnancy-related condition, including a pre-birth complication.
c. The Design-Builder shall post and maintain in a conspicuous place a notice of rights
in both English and Spanish and provide written notice of an employee's right to a
needed reasonable accommodation related to pregnancy, childbirth, related medical
conditions, or breastfeeding pursuant to the PPWF Act to:
1. New employees at the commencement of employment;
2. Existing employees; and
3. An employee who notifies the employer of her pregnancy, or other condition
covered by the PPWF Act, within 10 days of the notification.
d. The Design-Builder shall provide an accurate written translation of the notice of rights
to any non-English or non-Spanish speaking employee.
e. Violations of the PPWF Act shall be subject to civil penalties as described in the PPWF
Act.
Section 15.26.3 UNEMPLOYED ANTI-DISCRIMINATION
a. The Design -Builder shall comply with the Unemployed Anti -Discrimination Act of
2012, D.C. Official Code § 32- 1361 et seq. (“Anti- Discrimination Act”).
b. The Design-Builder shall not:
1. Fail or refuse to consider for employment, or fail or refuse to hire, an individual
as an employee because of the individual's status as unemployed; or
2. Publish, in print, on the Internet, or in any other medium, an advertisement or
announcement for any vacancy in a job for employment that includes:
i. Any provision stating or indicating that an individual's status as
unemployed disqualifies the individual for the job; or
ii. Any provision stating or indicating that an employment agency will not
consider or hire an individual for employment based on that individual's
status as unemployed.
c. Violations of the Unemployed Anti-Discrimination Act shall be subject to civil penalties
as described in the Anti- Discrimination Act.
Section 15.27 ASSIGNMENT OF CONTRACT PAYMENTS
a. Subject to this Section 15.27, in accordance with Title 27 DCMR Section 3250, the
Design-Builder may assign due or to become due as a result of the performance of this
Design-Builder to a bank, trust company, or other financing institution funds.
b. Any assignment shall cover all unpaid amounts payable under this Agreement and shall
not be made to more than one party.
c. Notwithstanding an assignment of Contract payments, the Design- Builder, not the
assignee, is required to prepare invoices. Where such an assignment has been made,
the original copy of the invoice must refer to the assignment and must show that
payment of the invoice is to be made directly to the assignee as follows:
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“Pursuant to the instrument of assignment dated ___________, make payment of this invoice
to (name and address of assignee).”
Section 15.28 FREEDOM OF INFORMATION ACT (“FOIA”)
The District of Columbia Freedom of Information Act, at D.C. Official Code § 2- 532 (a-3),
requires the District to make available for inspection and copying any record produced or
collected pursuant to a District contract with a private contractor to perform a public function,
to the same extent as if the record were maintained by the agency on whose behalf the contract
is made. If the Design-Builder receives a request for such information, the Design- Builder
shall immediately send the request to the PM designated in Section 1.3 of this Agreement who
will provide the request to the FOIA Offic er for the agency with programmatic responsibility
in accordance with the D.C. Freedom of Information Act. If the agency with programmatic
responsibility receives a request for a record maintained by the Design-Builder pursuant to the
Contract, the PM wil l forward a copy to the Design- Builder. In either event, the Design-
Builder is required by law to provide all responsive records to the PM within the timeframe
designated by the PM. The FOIA Officer for the agency with programmatic responsibility will
determine the releasability of the records. The District will reimburse the Design -Builder for
the costs of searching and copying the records in accordance with D.C. Official Code §2-532
and Chapter 4 of Title 1 of the D.C. Municipal Regulations.
Section 15.29 CAMPAIGN FINANCE REFORM ACT
Prior to the execution of this Contract, the Design- Builder shall complete and submit to the
Department a completed Campaign Finance Reform Act Self -Certification Form, Exhibit Y,
pursuant to D.C. Official Code § 1-1161.01.
Section 15. 30. Equal Employment Opportunity (“EEO”)
Each Offeror shall submit an EEO policy form substantially in the form of Exhibit P.
Section 15.31 DGS Turn Over/Close Out Manual
Deliverables shall include those outlined in Exhibit T.
Section 15.32 NONPROFIT FAIR COMPENSATION ACT OF 2020, D.C. Code § 2-
222.01 et seq
Section 15.32.1 Nonprofit organizations, as defined in the Act, shall include in their rates the
indirect costs incurred in the provision of goods or performance of services under this contract
pursuant to the nonprofit organization's unexpired Negotiated Indirect Cost Rate Agreement
(NICRA). If a nonprofit organization does not have an unexpired NICRA, the nonprofit
organization may elect to instead include in its rates its indirect costs:
1. As calculated using a de minimis rate of 10% of all direct costs under this contract;
2. By negotiating a new percentage indirect cost rate with the awarding agency;
3. As calculated with the same percentage indirect cost rate as the nonprofit organization
negotiated with any District agency within the past 2 years; however, a nonprofit
organization may request to renegotiate indirect costs rates in accordance with Section
15.32.2; or
4. As calculated with a percentage rate and base amount, determined by a certified public
accountant, as defined in the Act, using the nonprofit organization's audited financial
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statements from the immediately preceding fiscal year, pursuant to the OMB Uniform
Guidance, and certified in writing by the certified public accountant.
Section 15.32.2 If this contract is funded by a federal agency, indirect costs shall be consistent
with the requirements for pass -through entities in 2 C.F.R. § 200.331, or any successor
regulations.
Section 15.32.3 The Contractor shall pay its subcontractors which are nonprofit organizations
the same indirect cost rates as the nonprofit organization subcontractors would have received
as a prime contractor.
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ARTICLE 16- TERMINATION OR SUSPENSION
Section 16.1 All terminations or suspensions arising out of or under this Agreement shall be
in accordance with the terms of the Standard Contract Provisions (Construction Contracts and
Architectural/Engineering Services Contracts).
Section 16.2 Failure to Agree Upon GMP. The Department shall have the right to terminate
this Agreement in the event that the Department and the Design- Builder are unable to agree
upon a GMP for the Project and the Department shall have the right, but not the obligation, to
assume any of the Design- Builder’s trade subcontracts upon such terms and conditions as
requested by the Department. The Department’s decision to terminate under this Section shall
be made in the Department’s sole and absolute judgment and shall not be subject to review by
any reviewing body, including, but not limited to, arbitrators appointed under this Agreement
or any court of competent jurisdiction.
Section 16.3 Termination for Default . The Department may terminate the Agreement for
default if the Design -Builder fails to perform any of its duties or obligations under the
Agreement. In particular, but without limitation, the Department may terminate the Agreement
if:
1. The Design-Builder fails to perform the Work diligently, in accordance with the Project
Schedule or to make such progress in the Work as the Department reasonably believes
is necessary to complete the Project within the time required by the Agreement; or
2. The Design-Builder fails to perform the Work in a good and workmanlike manner or
to correct defects in the Work promptly upon notice by the Department; or
3. The Department reasonably determines that the Design -Builder has abandoned the
Work, or has failed to pay laborers, mechanics, materialmen, Subcontractors or
suppliers when payment is due; or
4. The Design-Builder becomes insolvent, makes an assignment for the benefit of
creditors, files a voluntary petition under any chapter of the Bankruptcy Code or has an
involuntary petition filed against it under any chapter of the Bankruptcy Code, or the
Design-Builder has a receiver appointed, or files for dissolution or otherwise is
dissolved; or
5. The Design-Builder fails to pay its debts in a timely manner or becomes insolvent, the
Department reasonably determines that the Design-Builder does not have the financial
ability to carry out its obligations under the Agreement and the Design-Builder fails to
give the Department prompt and reasonable assurances of its ability to perform.
Section 16.3.1 The Department shall provide the Design -Builder with written notice of its
intent to terminate the Agreement, under this Section.
Section 16.3.2 If the Department terminates the Agreement for default, the Department
will have the right to take over the Work, to accept assignment of some or all Subcontracts or
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agreements with material suppliers, to take possession of the Project, to take and use all tools,
equipment and supplies then being used in connection with the Work, and to finish the Project
by whatever method it deems expedient, including accepting assignment of all outstanding
Subcontracts and Supply Agreements.
Section 16.4 Termination for Convenience. The Department may terminate the Contract in
whole or specified part, for its convenience, for any reason. The notice of termination shall
state the effective date of termination, the extent of the termination, and any specific
instructions. The termination for convenience that arises out of or under this Agreement shall
be in accordance with the terms of the Standard Contract Provisions (Construction Contracts
and Architectural/Engineering Services Contracts).
Section 1 6.5 Continued Responsibility After Termination. If the Design -Builder is
terminated, for default, for Convenience or otherwise, the Design- Builder shall remain
responsible for defects or non- conformities in all Work performed to the date of the
termination.
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Article 17 – OTHER CONDITIONS AND SERVICES
Section 17.1 This Agreement and the rights and obligations of the Department and Design-
Builder herein are subject to the approval of the Council of the District of Columbia.
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Article 18 – CHANGES IN THE WORK
Section 18.1 Changes Authorized. In accordance with the Standard Contract Provisions
(Construction Contract) and the Standard Contract Provisions for Architectural and
Engineering services Contracts, the Department may, without invalidating the Agreement, and
without notice to or approval of any surety, order changes in the Work, including additions,
deletions or modifications. Any such change must be conveyed by the Department to the
Design-Builder via a written Change Directive or Change Order.
Section 18.2 Executed Change Directive/Change Order Required. Only a written Change
Directive or Change Order, executed by the Department ’s Contracting Officer, may make
changes to the Agreement. In particular, but without limitation, a written Change Directive or
Change Order executed by the Department’s Contracting Officer is the only means by which
changes may be made to the Substantial or Final Completion Dates, the Design- Build Fee, or
the GMP.
Section 18.3 Department-Initiated Changes
1. If the Department wishes to make a change in the Work or to accelerate the Work, it
will execute and issue to the Design-Builder a written Change Directive, either directing
the Design-Builder to proceed at once with the changed W ork or directing it to not to
proceed, but to inform the Department, in writing, of the amount, if any, by which the
Design-Builder believes that Substantial or Final Completion Dates and/or the GMP
should be adjusted to take the Change Order or Change Directive into account.
2. Within ten (10) days of receiving a Change Directive, the Design-Builder shall provide
the Department with a written statement of all changes in the Agreement, including,
without limitation, any changes to the Substantial or Final Completion Dates or the
GMP to which it believes it is entitled as a result of the Change Directive. If additional
time is sought, a schedule analysis supporting the requested extension should be
included. The schedule analysis should include a written narrative explanation. If a
change in the GMP is sought (or if the Department has requested a deduct change), the
statement should include a breakdown, by line item, of the estimated cost changes
attributable to the proposed change. The Department may request, and the Design-
Builder shall provide, further cost breakdowns, clarifications, Project documentation or
back-up if the Department reasonably believes such additional information is needed to
understand and evaluate the request. The additional information required may include
cost and pricing data in accordance with the Department’s regulations. Any requested
adjustment to the GMP shall be limited to increased Cost of the Work due to the Change
Directive. The Design -Builder is not entitled to any markup on any kind of Change
Orders except as authorized in Section 18.8, and if so authorized, any mark-up shall be
in accordance with Section 18.11.
3. If the Department has not yet directed the Design -Builder to proceed with the change
described by a Change Directive, the Department may rescind it. If the Department
wishes to proceed or has already directed the Design-Builder to proceed, the Design-
Builder shall immediately proceed with the changed Work and, the Department and the
Design-Builder shall use their good faith best efforts to reach an agreement upon the
modifications to the Substantial or Final Completion Dates, and/or the GMP that is
justified by the Change Directive. If the Department and the Design- Builder reach an
agreement, the agreement shall be set forth in a Change Order and the Design- Builder
shall also execute it, at which point it will become binding on both Parties.
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4. If the P arties fail to reach an agreement within sixty (60) days after the Department
receives the Design-Builder’s detailed statement pursuant to Section 18.3.2, and such
other Project documentation as the Department may request, the Design -Builder may
assert a claim in accordance with the Agreement. In such a case, and subject to
adjustment via the claims and disputes process, the Department shall unilaterally grant
the Design-Builder such adjustme nts, if any, to the Substantial or Final Completion
Dates, the GMP, and/or the Preconstruction or Design-Build Fee as the Department has
judged to be appropriate.
Section 18.4 Notice of Change Event. The Design -Builder must give the Department
written notice of any Change Event within ten (10) calendar days of the date on which the
Design-Builder knew, or reasonably should have known, of the Change Event. To the extent
available, the notice must state the nature of the Change Event and describe, generally, all
changes in the Agreement to which the Design- Builder believes it is entitled. Such notice is
an express condition precedent to any claim or request for adjustment to the Substantial or Final
Completion Dates, or the GMP arising from the Change Event and, if the notice is not given
within the required time, the Design -Builder will have waived the right to any adjustment to
the Substantial or Final Completion Dates, or the GMP arising from the Change Event.
Section 18.5 Detailed Change Request. Within twenty (20) days after giving notice of a
Change Event, the Design- Builder shall submit a written Change Request to the Department
describing, in reasonable detail, all adjustments it seeks to the Substantial or Final Completion
Dates or the GMP as a result of the Change Event. The Change Request shall include the same
information as described in Section 1 8.3 with respect to any Agreement changes the Design-
Builder seeks due to the Change Event, and the amount of any requested adjustment to the
GMP shall be limited in accordance with Section 18.3.
Section 18.6 Changes to GMP. Subject to the condition precedent that the Design- Builder
has complied with the notice and documentation provisions of this Article, and subject to the
limitations stated in this Agreement, the Design-Builder is entitled to an adjustment to the GMP
in the following cases:
1. If the Department issues a Change Directive or Change Order that directs the Design -
Builder to proceed with work that is beyond the scope of Work included within this
Agreement; or
2. The Design-Builder encounters differing site conditions or Hazardous Materials not
identified in the Preconstruction Phase.
Section 18.7 Deductive Change Orders. The Department reserves the right to issue
deductive Change Orders (reducing the GMP or modifying the Substantial or Final Completion
Dates to an earlier date) when changes are effected, by Change Directive or otherwise, which
will decrease the cost of completing the Work or the time within which it can be completed.
Section 18.8 No Adjustments to Fee. The Design -Builder understands and agrees that the
Design-Build Fee shall not be increased or decreased as a result of any Change Orders or
Change Directive. In furtherance of this understanding, the Design-Builder agrees that it shall
not be entitled to an increase in the Lump Sum General Conditions Cost or the Design-Build
Fee by virtue of changes authorized by the Department unless such changes fall outside the
general scope of work contemplated by this Agreement. The term general scope of work shall
mean a state-of-the-art educational facility that is consistent with the Department’s program of
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requirements and incorporates sustainable design initiatives. Without limiting the generality
of the foregoing, it is understood and agreed that the Design-Builder shall not be entitled to any
additional fees or general conditions unless (i) the Department makes additions to the scope
provided for in this Agreement that cause the GMP, either individually or in the aggregate, to
increase by more than ten percent (10%); or (ii) the Department makes additions to the scope
provided for herein which (other than for punchlist or warranty work) require the Design-
Builder’s services for the Project to extend beyond the Substantial Completion Date.
Section 18.9 Executed Change Orders or Contract Modifications are Final. The Design-
Builder agrees that any Change Order or Contract Modification executed by the Department
and Design-Builder constitutes its full and final adjustment for all costs, delays, disruptions,
inefficiencies, accelerations, schedule impacts, or other consequences arising from the change
modification in question, whether a Change Directive, or a Change Event, or from any claimed
cumulative effect of changes made to the date of the Change Order or Contract Modification,
and that no further adjustments in compensation or time shall be sought or made with respect
to the Change Directive or the Change Event giving rise to the Change Order or Contract
Modification. Although the Parties anticipate that most Change Orders or Contract
Modifications will not require an adjustment to the General Conditions Cost, if the Work
described in a Change Order or Contract Modification requires an increase or decrease in the
Lump Sum General Conditions Cost (i.e. because such a Change requires additional field staff
or other equipment that would be classified as General Conditions Costs), the Change Order or
Contract Modification shall contain an increase to the Design -Build Fee adjusting such
amount. The cost of processing a Change Order or Contract Modification shall not be
considered an event that will require an increase in the Lump Sum General Conditions Cost.
Section 18.10 Failure to Agree. If the Design-Builder claims entitlement to a change in the
Agreement, and the Department does not agree that any action or event has occurred to justify
any change in time or compensation, or if the Parties fail to agree upon the appropriate amount
of the adjustment in time or compensation, the Department will unilaterally make such changes,
if any, to the Agreement, as it determines are appropriate pursuant to the Agreement. The
Design-Builder shall proceed with the Work and the Department's directives, without
interruption or delay, and shall make a claim as provided in Article 18 herein. Failure to
proceed due to a dispute over a change request shall constitute a material breach of the Contract
and entitle the Department to all available remedies for such breach, including, without
limitation, termination for default.
Section 18.11 Mark-Up on Trade Work.
The maximum markup for Change Order work shall be as follows:
1. Intervening tier Subcontractors shall be entitled to a mark- up of five percent ( 5%)
(Covering home office overhead, the cost of insurance and bonds, field supervision,
general conditions and profit) on Work Performed by lower-tier Subcontractors;
2. To the extent permitted by Section 18.8, the Design- Builder shall be entitled to an
increase in its Design -Build Fee at a maximum rate of 2% on work performed by
Subcontractors. Such markup shall cover the same cost elements that were included in
the Design-Build Fee;
3. Direct Cost of the Work shall include, but not be limited to: (Direct Cost of the Work
does not, however, include home office overhead, field supervision, general conditions
or profit of either the Subcontractor or the Design-Builder. No personnel above t he
level of a working foreman shall be considered a Direct Cost of the Work).
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(a) Labor. Payment will be made for direct labor cost plus indirect labor cost such
as insurance, taxes, fringe benefits and welfare provided such costs are
considered reasonable. Indirect costs shall be itemized and verified by receipted
invoices. If verification is not possible, up to five percent (5%) of direct labor
costs may be allowed.
(b) Rented Equipment. Payment for required equipment rented from an outside
company that is neither an affiliate of, nor a subsidiary of, the Design- Builder
will be based on receipted invoices which shall not exceed rates given in the
current edition of the Rental Rate Blue Book for Construction Equipment.
published by Data Quest. If actual rental rates exceed manual rates, written
justification shall be furnished to the Contracting Officer for consideration. No
additional allowance will be made for overhead and profit. The Design-Builder
shall submit written certification to the Contracting Officer that any required
rented equipment is neither owned by nor rented from the Design-Builder or an
affiliate of or subsidiary of the Design-Builder.
(c) Design-Builder’s Equipment. Payment for required equipment owned by the
Design-Builder or an affiliate of the Design-Builder will be based solely on an
hourly rate derived by dividing the current appropriate monthly rate by 176
hours. No payment will be made under any circumstances for repair costs,
freight and transportation charges, fuel, lubricants, insurance, any other costs
and expenses, or overhead and profit. Payment for such equipment made idle
by delays attributable to the Government will be based on one-half the derived
hourly rate under this subsection.
(d) Materials. Incorporated and unincorporated materials as permitted under
Section 9.1.
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Article 19 – CLAIMS & DISPUTE RESOLUTION
Section 19.1 All claims or disputes arising out of this Agreement shall be governed by the
terms of the Standard Contract Provisions ( for Architectural and Engineering Services and
Construction Contracts).
Section 19.2 Notwithstanding any other provision of this Agreement to the contrary, neither
party including its officers, agents, servants, and employees, shall be liable to the other for lost
profits or any special, indirect, incidental, or consequential damages in any way arising out of
this Agreement however caused under a claim of any type or nature based on any theory of
liability (including, but not limited to contract, tort, or warranty) even if the possibility of such
damages has been communicated.
For the avoidance of confusion, the Parties agree that this provision does not affect the
Department’s ability to assess Liquidated Damages as set forth in Section 14. Furthermore, the
Parties agree that any acceleration costs required to complete the renovation work described in
this agreement shall not be considered consequential damages for purposes of this provision.
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Article 20 - EXHIBITS
Exhibit A1
Concept Design, Schematic Design, and Design Development
Milestone Requirements
Exhibit A2 Program Requirements (ATC and OSSE)
Exhibit B1 Existing Building Drawings
Exhibit B2 ATC Conditions Assessment Report
Exhibit B3 Asbestos Management Plan and Asbestos Inspection Report
Exhibit B4 Roof Condition Assessment Report
Exhibit B5 Historic Preservation Review Board application
Exhibit B6 Project Schedule
Exhibit C Deliverable List
Exhibit D SBE Subcontracting Plan
Exhibit E Reserved
Exhibit F Key Personnel
Exhibit G1 Davis Bacon Act Wage Determination
Exhibit G2 Title 29 Code of Federal Regulations (“CFR”) Part 5.5
Exhibit H Department’s Designated Representatives and Contracting Officers
Exhibit I Design-Builder’s Designated Representatives
Exhibit J Standard Contract Provisions (Construction and Architecture/Engineering)
Exhibit K Form of Lien Waiver
Exhibit L Form of GMP Amendment
Exhibit M Reserved
Exhibit N FF&E and Close-Out
Exhibit O Subcontractor Performance Evaluation Form
Exhibit P Equal Employment Opportunity Policy
Exhibit Q Living Wage Act
Exhibit R Award Fee Pool
Exhibit S BIM Requirements
Exhibit T DGS Turn Over Close Out Manual
Exhibit U Quality Control Master Program
Exhibit V First Source Employment Agreement
Exhibit W Assumptions And Clarifications
Exhibit X Schedule of Values
Exhibit Y Campaign Finance Reform Act Self-Certification Form
IN WITNESS WHEREOF, the Parties have executed this Agreement ( DCAM-25-CS-RFP-
0006) through their duly authorized representatives and effective as of the last date written
below.
DEPARTMENT OF GENERAL SERVICES CORENIC CONSTRUCTION
GROUP, LLC
an agency within the executive branch
of the Government of the District of Columbia
By: By:
Name: Name:
Title: Title:
Page 99
Date: Date:
FOC Exhibits
[EXHIBITS WILL APPEAR ON THE FOLLOWING PAGES]
Page 100
Exhibit A1
Concept Design, Schematic Design, Design Development Milestone Requirements
Page 101
Exhibit A2
Programmatic Requirements
Page 102
Exhibit B1
Existing Building Drawings
Page 103
Exhibit B2
ATC Conditions Assessment Report
Page 104
Exhibit B3
Asbestos Management Plan and Asbestos Inspection Report
Page 105
Exhibit B4
Roof Condition Assessment Report
Page 106
Exhibit B5
Historic Preservation Review Board application
Page 107
Exhibit B6
Project Schedule
Page 108
Exhibit C
Deliverable List
Design and Preconstruction Phase Deliverables
Deliverables shall include, but not be limited to:
a) Conceptual Plan and Cost Estimate;
b) Hard and soft copies of the complete set of Design Development Documents
(“DDD”), Specifications, and Design-Builder’s cost estimate and schedule;
c) 50% of the Schematic Design Development Documents (“SDDD”);
d) Hard and soft copies of the complete set of Construction Development
Documents (“CDD”), Specifications, and Design-Builder’s cost estimate and
schedule;
e) Baseline Schedule;
f) Preliminary Budget Estimate;
g) Obtain bids from trade subcontractors to perform the work described in the
DDD and provide bid tabulation to the Department;
h) List of subcontractors from which the Design-Builder intends to solicit bids and
bidding procedure;
i) List of Long Lead Items that could adversely impact the Project’s schedule and
recommendations for purchase;
j) A detailed list of FF&E;
k) Final Building Inspection;
l) Report outlining Value Engineering strategies;
m) GMP Proposal;
n) Safety Plan; and
o) Construction Phase Baseline Schedule.
Construction Deliverables
Construction deliverables shall include, but not be limited to:
a) Contingency Balance Update.
b) Hazardous Material Abatement Subcontractor Insurance Certificates.
c) Hazardous Material Abatement Records.
d) Construction Document Packages.
e) Progress Meeting Minutes.
f) Project Schedule Updates.
g) Project Progress Reports.
h) Cost Variance Report.
i) OSHA Safety Plan.
j) Close out documents (Product Manuals, Warranties, etc.).
Page 109
k) Quality Control Plan.
l) Quality Control Inspection Reports.
m) Corrective Action Plan if applicable.
n) ProjectTeam submissions.
o) Invoices and Acceptable Application for Payment with Release of Liens and
Claims.
p) Insurance Certificates.
q) Performance and Payment Bonds.
r) Certificate of Substantial Completion executed by the Project Design-Builder’s
Architect/Engineer and submitted to the Department for review, concurrence
and approval.
s) Documents that may be required by Contracting Officer from time to time.
Close-Out Deliverables
Deliverables shall include, but not be limited to:
a) A complete set of the Design-Builder’s Project files.
b) A complete set of product manuals, training videos, warranties, etc.
c) As built record drawings.
d) Attic stock and schedule.
e) Equipment schedule.
g) Environmental, health & safety documents.
h) LEED – Preliminary Construction Review.
i) All applicable inspection certificates/permits (boiler, elevator, emergency
evacuation plans, health inspection, etc.).
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Exhibit D
SBE Subcontracting Plan
Page 111
Exhibit E
Reserved
Page 112
Exhibit F
Key Personnel
Page 113
Exhibit G1
Davis Bacon Act Wage Determination
Page 114
Exhibit G2
Title 29 Code of Federal Regulations (CFR) part 5.5
Page 115
Exhibit H
Department’s Designated Representatives and Contracting Officers
Eric Njonjo
Acting Chief Procurement Officer
Contracts and Procurement Division
Department of General Services
Contracts and Procurement Division
3924 Minnesota Avenue NE, 5th Floor
Washington, DC 20019
Kianna Shepherd
Contracting Officer
Contracts and Procurement Division
Department of General Services
3924 Minnesota Avenue NE, 5th Floor
Washington, DC 20019
Page 116
Exhibit I
Design-Builder’s Designated Representatives
Page 117
Exhibit J
Standard Contract Provisions (Construction and Architectural/Engineering)
Page 118
Exhibit K
Form of Lien Waiver
Page 119
Exhibit L
Form of GMP Amendment
Page 120
GUARANTEED MAXIMUM PRICE AMENDMENT
DESIGN-BUILD AGREEMENT
ADVANCED TECHNICAL CENTER PHASE 2 EXPANSION AT PENN
CENTER
THIS GUARANTEED MAXIMUM PRICE AMENDMENT (“Amendment”) is
entered into by and between the DISTRICT OF COLUMBIA GOVERNMENT , acting by
and through its DEPARTMENT OF GENERAL SERVICES (the “Department”) and
[DESIGN-BUILDER], (the “Design -Builder”) pursuant to the Agreement, dated
______________, between the District of Columbia government, by and through the
Department and the Design -Builder, for design- build work at the ADVANCED
TECHNICAL CENTER PHASE 2 EXPANSION AT PENN CENTER and to establish a
Guaranteed Maximum Price (“GMP”) and Contract Time for the Work as set forth below.
ARTICLE 1
GUARANTEED MAXIMUM PRICE
Section 1.1 Guaranteed Maximum Price. Subject to additions and deductions which
may be made only in accordance with the Agreement, the Design-Builder represents, warrants
and guarantees to the Department that the total maximum cost to be paid by the Department
for Design-Builder’s complete performance under the Agreement, including, but not limited
to, Final Completion of all Work, all services of Design-Builder under the Agreement, and all
fees, compensation and reimbursements to Design- Builder, shall not exceed the total amount
of [INSERT AMOUNT] Dollars ([INSERT AMOUNT]) (" Guaranteed Maximum Price ").
Costs which would cause the GMP (as may be adjusted pursuant to the Contract Project
Documents) to be exceeded shall be paid by the Design-Builder without reimbursement by the
Department.
Section 1.2 GMP Components . The GMP is comprised of the maximum amount payable
by the Department for:
1.2.1 the Cost of the Work for full and complete performance of the Work in strict
accordance with the Contract Project Documents;
1.2.2 a Pre-Construction Fee for the Design- Builder, as defined in the Agreement,
in the amount of [INSERT AMOUNT];
1.2.3 a Design Fee for the Design -Builder, as defined in the Agreement, in the
amount of [INSERT AMOUNT];
1.2.4 a Design-Build Fee for the Design-Builder, as defined in the Agreement, in the
amount of [INSERT AMOUNT];
1.2.5 a Lump Sum General Conditions Cost, as defined in the Agreement, in the
amount of [INSERT AMOUNT];
1.2.6 The GMP is further broken down into line items and categories on Exhibits
____ attached hereto.
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Section 1.3 Basis for the GMP. The GMP is for the performance of the Work in
accordance with the Contract Project Documents listed and attached to this Amendment and
marked Exhibits ____ through ____, as follows:
1.3.1 Exhibit ____: List of Drawings, Specifications, addenda and General,
Supplementary and other Conditions of the Agreement on which the GMP is
based.
1.3.2 Exhibit ____: A list of Unit Prices and Allowance items as well as a statement
of their basis.
1.3.3 Exhibit ____: Assumptions and Clarifications made in preparing the
Guaranteed Maximum Price, noting in particular any exclusions. The
Assumptions and Clarifications shall take precedence over the Drawings and
Specifications, but shall be subordinate to the Agreement and the terms of this
Amendment.
1.3.4 Exhibit ____: The proposed Guaranteed Maximum Price, including a
statement of the detailed cost estimate organized by trade categories,
allowances, Contingency, and other items and the fee that comprise the
Guaranteed Maximum Price.
1.3.5 Exhibit ____: A Construction Phase Schedule which shall include, but not be
limited to, the Substantial and Final Completion Dates, upon which the
proposed GMP is based, and a schedule of the Construction Project Documents
issuance dates upon which the Substantial and Final Completion Dates are
based (the “Project Schedule”).
1.3.6 Exhibit ____: An LSDBE Utilization Plan setting forth the names and
estimated dollar volume of the work that will be perform by small, local and
disadvantaged business enterprises, as certified by the Department of Small
and Local Business Development, upon which the GMP is based.
Section 1.4 Incomplete Drawings and Specifications. Design-Builder and the
Department acknowledge that the Drawings and Specifications are not complete and, as of the
date hereof, that such Drawings and Specifications have reached the level of approximately
__% complete Project Documents. The Design-Builder, however, has been actively involved
in the design process and hereby represents that it has a sufficient understanding of the Project
to agree to a GMP to Fully Complete the Project. The Design-Builder hereby acknowledges
that the GMP Basis Project Documents provides sufficient detail and information to provide a
firm GMP and that the GMP proposed therein is intended to represent the Design- Builder’s
offer to Fully Complete the Project. The Design -Builder and the Department agree to work
together to complete the Drawings and Specifications as provided in this Agreement, consistent
with the GMP premises and assumptions and Project Schedule.
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Section 1.5 Design Intent; Inferable Work. Design-Builder agrees that the GMP is
based on the current state of the design, which represents approximately [__] percent complete
Project Documents. The GMP Basis Project Documents will include various clarifications and
assumptions that are intended to further define the scope of Work that will be required to
complete design. The Design-Builder has included within the GMP sufficient amounts to cover
aspects of the Work that are not shown on the GMP Basis P roject Documents. If the
Department does not approve any such scope increase, the Design- Builder shall cause the
Design-Builder’s Architect to develop a design that is consistent with the original design intent
and shall complete the Work for an amount that does not exceed the GMP.
Section 1.6 Cost Overruns. Subject to additions or deductions which may be made in
accordance with the Agreement, the Design -Builder shall be solely liable and responsible for
and shall pay any and all costs, fees and other expenditures in excess of the GMP for and/or
relating to the Work, without entitlement to reimbursement from the Department. Design-
Builder shall not be entitled to any fee, payment, compensation or reimbursement under this
Agreement or relating to the Work or Project other than as expressly provided in the
Agreement.
Section 1.7 Allowances. The GMP includes specific "Unit Price Allowance Amounts" for
certain items as shown on the Schedule of Values and budgeted in the GMP(" Allowance
Items"). The only Allowance Items shall be those specifically identified as such in the Schedule
of Values and in the Guaranteed Maximum Price. The Allowance Amounts represent all Costs
of the Work of the Allowance Items, including, without limitation, costs of materials, labor,
handling, transportation, loading and unloading and installa tion, as determined by Design-
Builder.
Section 1.8 Capital Eligibility. While a total amount of $xx,xxxx is being certified for capital-
eligible items only, there is an ineligible amount of $xxx,xxxx, listed in Exhibit H of the GMP
amendment. See the non -capital column and associated items. These items are ineligible for
capital expenditure, per the District Capital Guidelines. The goods/services are needed in
FYxxxx. There should be no purchases, commitments, or expendi tures for these items until
operating funds are available, via a purchase order for the same amount.
Section 1.9 Shared Savings . In the event there are GMP savings, excluding any Owner
Allowances and Owner Contingency, the GMP savings shall be split 70/30, with 70% allocated
to the Department and 30% allocated to the Design- Builder. The maximum allocation to the
Design-Builder shall be $990,000.00.
ARTICLE 2
INTENT, INTERPRETATION AND CORRELATION
Section 2.1 Intent of the Agreement . The intent of the Agreement is for the Design-
Builder to perform and supply, and the Department hereby engages Design- Builder to and
Design-Builder hereby agrees to perform and supply, the Work, including all necessary design
services, scheduling, pro curement, supervision, construction, and construction management
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services and supply all necessary labor, materials, equipment and related work and services
necessary to fully complete the Work and obtain the intended results of the Contract Project
Documents, including, but not limited to the requirements of the Project Schedule and the GMP
requirements set forth in Article 1 above. The enumeration of particular items in the
Specifications and/or Drawings shall not be construed to exclude other items. The Contract
Project Documents are complementary, and what is required by any one of the Contract Project
Documents (including either a Drawing or Specification) as being necessary to produce the
intended results shall be binding and required as a part of the Work as if required by all Contract
Project Documents.
Section 2.2 Design-Builder’s Compliance with Contract Project Documents . The
Design-Builder agrees, accepts and assumes that the Department's decision will require
implementation of the most stringent requirements among any conflicting provisions of the
Contract Project Documents as being part of the Work. The Design-Builder agrees to be bound
by all decisions by the Department to implement the most stringent of any conflicting
requirements within the Contract Project Documents. Any failure by Design-Builder to seek
such clarifications shall in no way limit the Department's ability to require implementation,
including replacement of installed Work at a later date at Design-Builder's sole expense, to
achieve compliance with the more stringent requirements. Without limiting the generality of
the foregoing, the Design-Builder hereby agrees as follows:
2.2.1 The failure of the Department to insist in any one or more instances upon a strict
compliance with any provision of this Agreement, or to exercise any option herein conferred,
shall not be construed as a waiver or relinquishment of the Department's right thereafter to
require compliance with such provision of this Agreement, or as being a waiver of the
Department's right thereafter to exercise such option, and such provision or option will remain
in full force and effect.
2.2.2 If there is any inconsistency in the Drawings or any conflict between the Drawings and
Specifications, Design-Builder shall provide the better quality or greater quantity of Work or
materials, as applicable, unless the Department directs otherwise in writing.
2.2.3 The Design-Builder shall be responsible for dividing the Work among the appropriate
Subcontractor and Vendors. No claim will be entertained by the Department based upon the
organization or arrangement of the Specifications and/or the Drawings into areas, secti ons,
subsections or trade disciplines.
2.2.4 Detail drawings shall take precedence over scale drawings, and figured dimensions on
the Drawings shall govern the setting out of the Work.
2.2.5 Unless the Specifications expressly state otherwise, references to documents and
standards of professional organizations shall mean the latest editions published prior to the
Effective Date.
2.2.6 Technical words, abbreviations and acronyms in the Contract Project Documents shall
be used and interpreted in accordance with customary usage in the construction industry.
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2.2.7 Whenever consent, permission or approval is required from any party pursuant to the
provisions of the Contract Project Documents, such consent, permission or approval shall,
unless expressly provided otherwise in this Agreement, be given or obtained, as applicable, in
writing.
ARTICLE 3
[INTENTIONALLY OMITTED]
ARTICLE 4
OTHER PROVISIONS
Section 4.1 Design-Builder’s Responsibilities. The Design-Builder also expressly
acknowledges that this Project and the Work will proceed on a "fast -track" method of
construction, i.e., construction will commence without final Drawings and Specifications in
place. More specifically, while Drawings and Specifications are complete for certain portions
of Work, the design process will continue for other portions during construction based on the
GMP premises and assumptions. The Design-Builder has been, and will continue to be, an
active participant in the design process. Given such participation, the Design-Builder represents
that it is familiar with the scope and quality of those aspects of the Project that have not yet
been fully designed, and has taken such scope and quality matters into consideration in
preparing each component of the Guaranteed Maximum Price. The Design-Builder agrees to
work with the Department in managing the construction and design work to complete the
design process. The Design-Builder shall manage the Project, including coordinating redesign
or value engineering necessary or advisable for certain aspects of the Project at any stage of
the design process in order to bring the cost of such Work within or below, but not in excess
of, the respective allowances or the budgeted or allocated amounts for other items contained in
the Guaranteed Maximum Price. Once the Drawings and Specifications are complete, it is
recognized by the Design-Builder and the Department that the scope of the GMP may include
Work not expressly indicated on the Contract Project Documents, but which is reasonably
inferable from the Contract Project Documents, and such Work shall be performed without any
increase in the GMP or extension of Contract Time, except if and to the extent otherwise
expressly provided in this Agreement.
ARTICLE 5
MISCELLANEOUS PROVISIONS
Section 5.1 Prior Agreement Unaffected. Except as expressly agreed to herein, all of the
terms, conditions, representations and warranties set forth in the Agreement shall remain
unaffected and in full force and affect.
Section 5.2 Integrated Agreement. This Amendment and any attachment hereto set forth
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the entire agreement and understanding of the parties regarding the transactions contemplated
hereby and supersede all prior oral and written agreements, arrangements and understandings
relating to the subject matter hereof. There are no oral or written agreements or understandings,
representations or warranties among the parties other than those set forth herein.
Section 5.3 Counterparts. This Amendment may be executed in one or more counterparts,
each of which shall be deemed to be an original, but all of which shall be considered one and
the same instrument.
Section 5.4 Construction. This Agreement shall be construed fairly as to all parties and
not in favor of or against any party, regardless of which party prepared the Agreement.
IN WITNESS WHEREOF , each of the parties to this Amendment to Agreement ( DCAM-
25-CS-RFP-0006) has caused it to be executed by its duly authorized representative on the
dates set forth below.
DISTRICT OF COLUMBIA GOVERNMENT, by and through its
DEPARTMENT OF GENERAL SERVICES
By:
Name:
Title:
Date:
[DESIGN-BUILDER]
By:
Name:
Its:
Date:
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Exhibit M
Reserved
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Exhibit N - FF&E and Close-Out
FF&E
The Design-Builder shall be responsible for FF&E as set forth in this Exhibit: [TBD at
GMP Amendment]
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Exhibit O
Subcontractor Performance Evaluation Form
To be determined at GMP Amendment
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Exhibit P
Equal Employment Opportunity Policy
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Exhibit Q
Living Wage Act
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Exhibit R
Award Fee Pool
The Design-Builder shall be entitled to the At-Risk Portion as follows:
a) The Design -Builder shall be eligible to earn up to thirty -three percent (33%) of the
Award Fee Pool based on the overall level of quality of the Project as delivered (such
amount, the “Quality Incentive Amount”). Entitlement to this portion of the Award Fee
Pool shall be determined by an award fee committee (the “Award Fee Evaluation
Committee”), which will be appointed by the Design-Builder and the Department
within sixty (60) days after award. The Award Fee Evaluation Committee shall consist
of the following people:
i. DGS Capital Construction Division (“CCD”) Deputy Director, or their
designee;
ii. OSSE Chief of Facilities, or their designee;
iii. DGS CCD representative; and
iv. OSSE Facilities representative.
Panelist shall not be an individual who has day- to-day interactions or involvement on
the Project. Panelist shall not be an individual who is presently involved in an active
project with the Design -Builder. Upon Substantial Completion, the Award Fee
Evaluation Committee shall inspect the Project and assess, for each of the areas of the
Project listed below, the overall appearance, functionality and level of quality found in
the Work. In making this determination, the Award Fee Evaluation Committee shall
average their individual scores into a single score based upon the following scale:
i. 0 points – the Design -Builder failed to meet the minimum
requirements of the project and/or quality.
ii. 1 point – the Design -Builder marginally met the minimum
requirements of the Project and/or quality with major deficiencies
iii. 2 points – The Design -Builder marginally met the minimum
requirements of the Project and/or quality with minor deficiencies
iv. 3 points – The Design- Builder met the requirements of the
project and/or quality with minimal deficiencies
v. 4 points – The Design -Builder met some requirements and/or
quality and exceeded others. There were no deficiencies.
vi. 5 points – The Design -Builder exceeded most, if not all, the
requirements of the Project and/or quality with no deficiencies.
If the Award Fee Evaluation Committee’s average score is 4 points or greater, then the
Design-Builder shall be entitled to the full award fee. If the average score is less than
4, then the average score shall be divided by four (4) and then multiplied by the award
fee. That shall be the amount of the award fee that shall be given to the Design-Builder.
Example 1: The average score is 3.5 and the award fee is $200,000. The Design-Builder
shall be entitled to $175,000. Example 2: The average score is 4.1 and the award fee is
$200,000. The Design-Builder shall be entitled to $200,000. At a minimum, the Award
Fee Evaluation Committee shall evaluate the following for their scoring:
i. Main entrance to the building, both exterior and interior;
ii. Playground, if included;
iii. Playing fields, if included;
iv. Gymnasium;
v. Façade, not including windows;
vi. Windows (exterior), including any framing;
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vii. Public space that was part of the Design-Builder’s scope;
viii. Cafeteria;
ix. Auditorium, if included;
x. Discovery Commons area(s);
xi. Library;
xii. Level of completeness of punchlist;
xiii. Historic elements, if included;
xiv. Plantings and landscaping;
xv. Interior finishes in hallways;
xvi. Interior finishes in classrooms; and
xvii. Interior finishes in offices.
Prior to being eligible for the Quality Incentive Walk, all quality control and quality
assurance-related deficiencies documented by the District shall be resolved and
accepted as resolved by the District.
b) If the Design-Builder achieves Substantial Completion of the Project on time the Design-
Builder shall be entitled to receive thirty -three percent (33%) of the At Risk Portion
(i.e. 10% of the Design-Build Fee). Entitlement to this portion of the Award F ee Pool
shall be based on the final outcome of the Project and the Project has been successfully
turned over to the District. For the avoidance of doubt, the Design-Builder shall not be
entitled to earn such portion of the Award Fee Pool even if the failur e to deliver on-
time was caused by OSSE , the Department, delays resulting from the permitting or
zoning process, or an event of Force Majeure.
c) If the Design -Builder achieves Final Completion of the Project, the Design- Build Fee
and the final amount due to the Design- Builder (inclusive of the Preconstruction Fee ,
the Design Budget, the earned portions of the Award Fee, the Base Design- Build Fee
and the Lump Sum General Conditions Cost) is less than one hundred three percent
(103%) or the Project Budget unless changed by the direction of DGS, the Design-
Builder shall earn thirty-four percent (34%) of the At -Risk Portion (i.e. 10% of the
Design-Build Fee). Entitlement to this portion of the Award Fee Pool shall be based on
the final outcome of the Project. For the avoidance of doubt, the Design- Builder shall
not be entitled to earn such portion of the Award Fee Pool even if the failure to deliver
within the (103%) cost goal was caused by OSSE, the Department, delays resulting
from the permitting or zoning process, or an event of Force Majeure.
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Exhibit S
BIM Guideline
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Exhibit T
DGS Turn Over/Close Out Manual
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Exhibit U
Quality Control Master Program
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Exhibit V
First Source Employment Agreement and revised Employment Plan
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Exhibit W
Assumptions and Clarifications
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Exhibit X
Schedule of Values
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Exhibit Y
Campaign Finance Reform Act, Contractor Self-Certification Form