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Infrastructure:

Determination of Fee Structure

Description:​

The California State University has authority to procure its major capital outlay projects using the ​Collaborative​ Design-Build method (CDB), a modified form of the Trustees' Design-build procurement and/or Construction Manager at Risk with Guaranteed Maximum Price (CMAR) under Public Contract Code section 10708.

Task Order-Construction Agreement for Multiple Projects (TOCA) procurement allows for both CMAR and CDB types of project deliveries to be used concurrently under a single TOCA master enabling agreement for anticipated group of projects.

Prior to issuance of Request for Qualifications, an evaluation should be made to determine if the TOCA agreement fee structure is based on the an Hourly Rate fees (HR) or Percentage of Direct Construction Cost fees  also referred to percentage (PCT) fees.  

Hourly Rate ​Fee Schedule​

The service provider proposes an hourly rate fee schedule. The average of the three staff members' billable rates from each category of services listed on the fee proposal form with the highest number of proposed hours multiplied by an assumed number of hours is used as the fee portion of the RFP evaluation.

Through the use of a Task Order Request, CSU and the service provider collaborate to establish the desired level of services and fees for each phase (preconstruction and construction) of each project, and write a task order or construction agreement for that customized level of service and fees.

CSU is not required to provide detailed project scope descriptions for service provider fee proposals, but must provide enough detail for the service provider to propose on the appropriate subcontractors and consultants necessary to perform the work.

CSU must identify in the RFP a listing of projects that are likely to be performed and may include an item 'Other Projects to be Determined' for which the value would not exceed 20% of the total value of the projects that are identified.

Percentage​ Fees

The service provider proposes fees based on a percentage of direct construction cost for each category of project.

The project delivery method breakdowns represented on the fee proposal form are: CM at Risk and Collaborative Design-Build, and each delivery method is broken down by project size as follows:

$1,000,000.00 or less  /  $1,000,000.01 to $3,000,000.00  /  $3,000,000.01 to $7,000,000.00.

The procurement phase in this model is simplified for the RFP, task orders and construction agreements, as CSU does not utilize the Task Order Request process as described in Hourly rate fee above. For each Project under the TOCA MEA, the task order and construction agreement Contract amounts shall be the lump sum price or GMP, which is the sum of the actual direct construction cost as bid, plus the line items listed in the Fee Proposal Evaluation Worksheets, as proposed by the contractor and agreed upon by the Trustees for each Project and included in the TO-CA MEA as Exhibit A, Fee Schedule.

In this model the CSU is required to provide in the RFP project scope and all special conditions descriptions that are detailed enough for the service provider to competitively propose fees. The descriptions must be more detailed, enough for the service provider to propose on the appropriate subcontractors and consultants necessary to perform the work, and to propose on a percentage fixed fee for all phases of the work.

CSU must identify in the RFP a listing of projects that are likely to be performed and may include an item 'Other Projects to be Determined' for which the value would not exceed 20% of the total value of the projects that are identified.​