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HomeMy WebLinkAbout26-0126 - 2026-09-29 - Informal ReportFORT WORTH® INFORMAL REPORT TO CITY COUNCIL MEMBERS SUBJECT: SBE ENGAGEMENT PLAN FOR CONVENTION CENTER EXPANSION PROJECT - CYNTHIA SANCHEZ SERRANO, PUBLIC EVENTS DIRECTOR DATE: 09/29/26 NUMBER: IR 26-0126 TO THE MAYOR AND MEMBERS OF THE CITY COUNCIL The purpose of this Informal Report is to provide the City Council with an overview of the Small Business Enterprise (SBE) engagement plan for the second phase of the Fort Worth Convention Center (FWCC) Expansion and Renovation Project. Background The expansion and renovation of the FWCC is a two-phase project with a budgeted cost of $701,000,000.00. Phase 1, budgeted at $95,000,000.00, focused on back of house improvements and was substantially completed in December of 2025. Phase 2, budgeted at $606,000,000.00, focuses on customer -facing improvements, like expanded exhibit hall space, a second ballroom, and new meeting rooms. This project is currently under design, with pre - construction activities having started in February of 2025. Preliminary construction of Phase 2 began in April of 2026 and currently has a forecasted completion date of December 2029. Project funding comes from debt serviced by the Culture and Tourism Funds. The FWCC Phase 1 and Phase 2 work was procured under the City's former Business Equity program. The procurement included an option to continue the work of the selected Construction Manager at Risk (CMAR), a joint venture between AECOM Hunt, Byrne Construction, and EJ Smith Construction (HBS), into Phase 2. The City exercised this option in August of 2025. Following the original procurement, the City transitioned from its Business Equity program to its current Small Business Enterprise (SBE) program. Because the Phase 2 CMAR services were exercised by option, an SBE participation requirement was not incorporated into Phase 2. However, for Phase 2 the CMAR has committed to collaborate with the City to meet or exceed the City's 30% SBE utilization goal for contracts over $100,000.00. To date, approximately $22,700,000.00 in Phase 2 construction contracts have been awarded by the CMAR: $10,000,000.00 for structural steel procurement, $7,700,000.00 for environmental remediation and demolition, and $5,000,000.00 for restroom renovations. In follow-up conversations with the CMAR and the demolition contractor, City Staff have been notified that 1 of 3 FORT WORTH® the demolition contractor is in discussions with SBE businesses to serve in a sub -contracting capacity. Phase 1 Business Equity Outreach Process During Phase 1, the CMAR implemented an extensive outreach and solicitation process to support the City's Business Equity participation requirements, including: • All HBS RFP solicitations were issued through BuildingConnected (a construction industry procurement platform) and made available to the broader public construction marketplace. • City Business Equity compliance requirements and applicable forms were included in RFP solicitations to trade partners. • Bid forms required trade partners to identify their Business Equity status and anticipated Business Equity participation. • HBS obtained the City's list of registered vendors and Business Equity firms and added applicable firms to the BuildingConnected database based on their relevant scopes of work. • RFP solicitations included pre -bid outreach meetings and opportunities for firms to review and better understand the project. • EJ Smith Construction conducted additional outreach through print media and provided outreach information to the City's Business Equity Department for distribution through City channels. • EJ Smith directly contacted local Business Equity organizations and groups regarding upcoming opportunities. • HBS conducted outreach for individual RFP solicitations throughout Phase 1, with meetings held at the Fort Worth Convention Center. • HBS sponsored and participated in local Business Equity events to further promote awareness of the project and upcoming opportunities. Phase 1 Business Equity Participation exceeded the City's goals for the project: • Combined - 27% • Soft Cost/Fee - 34% • Cost of Work - 26% Proposed Phase 2 Approach 2 of 3 FORT WORTH® The 30% SBE participation goal is being incorporated into the remaining Phase 2 construction elements. HBS plans to use a similar outreach and solicitation process similar to Phase 1 to involve qualified SBE firms: • Incorporating the City's established SBE requirements into future Phase 2 bid packages. • Working continuously with the City's Economic Development Department, identifying registered SBE firms applicable to each upcoming scope of work. • Directly notifying qualified SBE firms of opportunities to bid through BuildingConnected and other outreach channels. • Conducting targeted pre -bid and outreach meetings for upcoming procurement packages. • Coordinating with the City, the Small Business Advisory Board, the local Chambers of Commerce, and local small business organizations to increase awareness of available opportunities. • Tracking SBE participation and outreach efforts throughout the remaining Phase 2 procurement process. Next Steps The City is working with the project team to formalize an SBE program for the remaining Phase 2 construction. The program will include clear directions to the CMAR team concerning eligibility requirements, reporting requirements, and contractual mechanisms necessary to implement the program. Upon receiving that direction, the CMAR team can incorporate the requirements into future solicitations and begin targeted SBE outreach modeled on the successful framework established during Phase 1. For questions regarding this information, please contact Cynthia Sanchez Serrano, Public Events Department Director at 817-392-2598 or Marilyn Marvin, Property Management Director at 817-392-7708, or Ori Fernandez, Economic Development Assistant Director at 817- 392-2606. Jesus "Jay" Chapa City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS 3 of 3