Exhibit 1 - Agenda Information SheetCity of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: February 9, 2021
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager, or his designee, to execute a Professional Services Agreement with OCMI,
Inc., to provide cost estimating review, cost estimating preparation, and estimate at completion projection
services for the City of Denton’s capital infrastructure projects as set forth in the contract; providing for the
expenditure of funds therefor; and providing an effective date (RFQ 7508 – Professional Services
Agreement for Cost Estimating Services awarded to OCMI, Inc., for two (2) years, with the option for one
(1) additional one (1) year extension, in the total three (3) year not-to-exceed amount of $402,780.00).
INFORMATION/BACKGROUND
Accurate project cost estimates are a critical component of every public construction project to ensure
infrastructure is delivered on time and on budget. Inaccurate project cost estimates can lead to costly change
orders, project scope changes, and project delays. With the creation of the new Capital Project Delivery
Team in the Capital Projects Department, dedicated project managers have been assigned to manage the
scope, schedule, and budget of every City of Denton capital infrastructure project. The Capital Project
Delivery Team has made strides in improving project estimates and is interested in augmenting these efforts
with an outside firm to help refine estimating best practices, develop tools and templates for budget
projections, and train staff on ways to better use market and industry data to ensure initial project estimates
are as accurate as possible for the lifespan of a project.
Should the City Council approve the proposed contract with OCMI, Inc., the firm will review and
recommend improvements to current budget estimation tools, assist with the preparation and review of
detailed construction cost estimates for current and proposed infrastructure projects, and provide
independent construction cost validation services for estimates provided by design teams and/or contractors.
OCMI, Inc. will also assist with the evaluation and enhancement of existing procurement and project
management processes including the development of revised solicitation documents to provide high-quality
infrastructure while minimizing the financial risk to Denton taxpayers.
All new processes, tools, and techniques will be developed collaboratively with the City of Denton staff.
Process revisions, updates to project budget estimates, and revised project delivery methods for
infrastructure projects stemming from this proposed contract will be shared with the City Council during
future Capital Improvement Plan Update Work Sessions.
OCMI, Inc. was one of five qualified respondents to the request for qualifications (RFQ) for cost estimation
services. The Evaluation Committee for this RFQ selected OCMI, Inc. because of their proven track record
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
doing similar work in major cities and counties nationwide including Los Angeles, CA; Las Vegas, NV;
and Clark County, NV. OCMI, Inc. has excellent references and has several repeat local government clients
who use their services to ensure major infrastructure projects have accurate cost projections.
Contract pricing includes independent cost estimates and peer-review fees for capital projects and is based
on the current estimate at completion for each project that OCMI will review. The table below outlines how
the not-to-exceed amount of $402,780 was established:
Total Projects
Number of
Projects
Reviewed
Cost Estimate Number of Projects
Reviewed Peer Review Total
$1-$10 Million Avg. 8 $5,500 8 $3,500 $72,000
$10-$30 Million Avg. 12 $16,800 7 $10,000 $ 271,600
Training and Template
Development $40,000
5% Contingency $19,180
OCMI Contract Total 35 Total Projects $402,780
Request for Qualifications (RFQ) for professional cost estimating services was sent to 91 prospective firms
for these services. In addition, the RFQ was placed on the Materials Management website for prospective
respondents to download, and advertised in the local newspaper. Five (5) statement of qualifications (SOQ)
were received. The SOQs were evaluated based on published criteria including probable performance,
compliance with specifications, and schedule. Based upon this evaluation, the recommended award is to
OCMI, Inc., and is determined to be the most qualified firm for the City.
NIGP Code Used for Solicitation: 925-(Service Only)-Engineering
Services, Professional & 961-(Service
Only)-Miscellaneous Services, No. 1
(Not Otherwise Classified)
Notifications sent for Solicitation sent in IonWave: 91
Number of Suppliers that viewed Solicitation in IonWave: 76
HUB-Historically Underutilized Business Invitations sent out: 11
SBE-Small Business Enterprise Invitations sent out: 21
Responses from Solicitation: 5
RECOMMENDATION
Award a contract with OCMI, Inc., to provide cost estimating review, cost estimating preparation, and
estimate at completion projection services for the City of Denton’s capital infrastructure projects, in a two
(2) year, with the option for one (1) additional one (1) year extension, in the total three (3) year not-to-
exceed amount of $402,780.
PRINCIPAL PLACE OF BUSINESS
OCMI, Inc.
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This is an initial two (2) year contract with options to extend the contract for one (1) additional one (1) year
period, with all terms and conditions remaining the same.
FISCAL INFORMATION
These services will be funded from the Capital Projects Department’s operating budget. Requisitions will
be entered on an as-needed basis. The budgeted amount for this item is $402,780.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Evaluation Sheet
Exhibit 3: Ordinance and Contract
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Rachel Wood, 940-349-7718.
Legal point of contact: Marcella Lunn at 940-349-8333.