The Muncie Sanitary District Board on May 28 approved project guidelines for a request for qualifications (RFQ) to select firms for guaranteed savings/guaranteed maximum price (GMAX) contracts for the next phase of long-term control plan work.

Rick Conrad, district administrator, said the district used similar guaranteed savings or GMAX contracts in a prior phase and generally was satisfied with the approach. "The contracts are set up so that the contractors paid for the cost plus a plus a fee ahead of time, which lists a maximum amount. If the maximum amount is not reached those savings are returned to the district. If the maximum is exceeded then that has to be, absorbed by the contractor," Conrad said.

Commissioner Clark noted the RFQ and selection procedures are governed by Indiana law and confirmed the scoring and weighting will be posted on the district website. Conrad said the district counsel (Mister Ritz) prepared the guidelines to ensure compliance with applicable Indiana law. The board voted, by voice, to approve the guidelines and to advertise the RFQ; staff will receive responses, score them using the stated criteria and select a contractor for guaranteed maximum price projects.

Why it matters: the RFQ will determine which firms proceed to price identified project scopes and may directly affect schedule and cost control for the next construction phase of the long-term control plan.

Next steps: district staff will advertise the RFQ, accept submissions that meet the minimum requirements, score proposals per the published weighting, and select a firm to proceed under a guaranteed maximum price arrangement. The board did not announce specific RFQ deadlines at the meeting.