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FINANCIAL APPROACH <br />CITY OF SOUTH BEND: PINHOOK WTP IMPROVEMENTS PROJECT GUARANTEED SAVINGS CONTRACT <br />FINANCIAL APPROACH <br />A. The City may implement the capital improvements in several phases over a three (3) to five (5) year period. <br />Explain how the Provider will handle a phased project approach. <br />Reynolds Construction is proposing an opportunity to complete as much work as necessary to avoid the multi-phase <br />approach and performing this work under the time-period planned for the shutdown. We understand based on <br />conversations during the pre-bid walk thru that time will be of the essence, coordination will be a must and <br />communication will be required to be open and often. Reynolds is structuring our crews to be located on the upper <br />level and lower level concentrated on specific tasks so we can perform and complete these tasks concurrently. Our <br />approach is worth a more in-depth discussion before its discounted as unachievable. <br />B. Describe in detail the process that the Provider intends to utilize to obtain the best prices for the Owner. <br />Explain why this approach is better than other available approaches. <br />Reynolds understands that the improvements at the plant need to be installed quickly, at a high quality and at a fair <br />and open price. The single biggest opportunity to save money will occur during design collaboration. By working <br />closely with American Structurepoint and the operators of the plant, Reynolds will focus on presenting options for <br />equipment, manufacturers, and budgets. Together we will work to reduce the risk of the project associated with <br />equipment selection and installation. Our pre-shutdown planning process will provide lower project risk, and additional <br />cost containment. Lower risk results in lower costs and 100% of that savings will be realized by South Bend. Once <br />the design is complete, REYNOLDS WILL BE THE LOWEST COST HIGHEST QUALITY OPTION for construction due <br />to our high rate of production, modest markup, lower average labor rate, and internally owned equipment fleet. As <br />mentioned earlier, we will also bid any work that is not self-performed to local contractors and include the owner and <br />the design team in every step of that process. <br />DESIGN PHASE COLLABORATION <br />During the design collaboration process, we will work closely with the City of South Bend’s (City’s) team and American <br />Structurepoint to identify cost effective options for the work identified in the basis of design document. Our approach <br />to the design collaboration will include: <br /> The best technical resources available to solve your challenges <br />“Reynolds’ input during the <br />o Design Manager – Scott Huber (PE) with 26 years of experience <br />design phase is invaluable to the <br />o Project Manager – Michael Benter with 28 years of experience <br />Owner offering cost savings <br />o Midwest EVP – Paul Burton with 36 years of experience <br />ideas and resolving <br />o VP Facilities – Adam Ralph with 19 years of experience <br />constructability issues...” <br />o Superintendent – James Bartrum with 21 years of experience <br /> <br /> A design brain-storming session with all individuals engaged in the <br />Very Truly Yours, <br />recommendation and evaluation of design alternatives. We will <br />Jeff Raffensperger <br />identify VE ideas to save the City money. Our clients and partners <br />Vice President, Principal Project <br />rave about this. <br />Manager Water Practice <br /> Using actual historical production and current material costs, our <br />Gannett Fleming, Inc. <br />experienced estimators will develop realistic budgets for the options. <br />We do this every day and know the market well. <br /> We will create a CPM schedule for each option and assist with the creation of a cost-benefit evaluation <br />including O&M costs and construction risks. <br /> As the design for the preferred solution progresses, Reynolds will continue to provide constructability <br />reviews to drive out cost. At the 60% stage, we will provide the City a Guaranteed Maximum Price (GMP) <br />with a commitment to no change orders. <br />Page | 43 <br /> <br />