1435 Navahoe Drive Pittsburgh, PA 15228 July 24, 2011 Dr. Timothy J. Steinhauer Superintendent Mt.

Lebanon School District 7 Horsman Drive Pittsburgh, PA 15228

Dr. Steinhauer: How many times has Mr. Celli told us our project is possibly second only to the space shuttle in complexity? Components from many sources have to come together one time, in one place and be right. A significant concern in moving from single to multiple prime contractors is that this is simply a District workaround that may lower initial bids, allowing the project to leave the launch pad, all the while exposing the Community to a greater all-in project cost, as well as scheduling issues for this multifaceted undertaking. The District shared this concern last year when it applied for the waiver, writing: ! ! Diminished cost control is often a by-product of the multiple prime contractor organization. In addition to the benefits (of a general contractor) regarding decreased cost, improved timeliness, and fewer inter-contractor disputes, many general contractors have developed relationships with groups of loyal and capable subcontractors with whom they worked cooperatively and have teamed in the past. This enables generals to complete their projects within budget and schedule requirements. (I)t is the Owners as well as the architects opinion that ultimately (the Mandate Waiver Evaluation form) will be checked yes in areas of efficient time management, use of staff, improve coordination of services, cost savings, flexibility in decision making, and reducing conflicts in the scheduling and meeting deadlines.

The architects were previously supportive of engaging a single general contractor. Now with the project in disarray, due in large part to CFBs own handiwork, they are singing a new tune. I was thunderstruck with CFB representative Brennans response to Mrs. Cappucci regarding his firms flip-flop on the issue of single vs. multiple prime contractors to save money. As reported in The Almanac, Mr. Brennans comeback to Mrs. Cappuccis query as to why his firm did not recommend going multiple last year, was in part: "the project was on budget then1. Actually, I am not sure this is true. The project may have never really been on budget. The PJ Dick +/- $86,000,000 estimates may have been rotten to the core.
1

Please note there is never a good reason to wastefully burn millions of tax dollars, on budget or not.

Dr. Timothy J. Steinhauer Superintendent Mt. Lebanon School District July 24, 2011

If oh so many months ago, the project scope had been what is envisioned today, the construction estimate could possibly have been more in the $70,000,000 neighborhood, with subsequent bids tallying to $86,000,000. Clearly, if we never included (the now being deleted) $16,000,000 worth of stuff, in the original $86,000,000 configuration, the resulting estimate would have been far, far less. The District could still be struggling with removing as much as $16,000,000 from the project, with the final budget having been based on a considerably lower construction estimate. Celli-Flynn Brennans and PJ Dicks recent elucidations sound no more credible than Rover ate my homework. At this point, the project will continue its disastrous path as long as the Board accepts such unsupported explanations and follows the recommendations of the undeniably fallible. Sincerely,

William R. Matthews III

cc:

MTLSD School Board MTL

Attachment:

MTLSD Waiver Application