DEPARTMENT
Infrastructure Division
AGENDA NO.
9h
MEETING DATE
January 11, 2022
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Consent Calendar
Contract Manager: Ryan Freeborn
Award Contract No. WD-2843, 16-, 12-, and 8-Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts from Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan to Valley Sts
Summary of
Proposed
Commission
Action:
Approve the plans and specifications and award San Francisco Public Utilities Commission’s (SFPUC) Water Enterprise advertised Local
Conveyance/Distribution System Program-funded Contract No. WD-2843, 16-, 12- , and 8-Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts from Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan To Valley Sts , in the amount of $8,802,037, and with a duration of 663 consecutive calendar days (approximately one year and 10 months), to the responsible bidder that submitted the lowest responsive bid, M Squared Construction Inc., to install 13,640 feet of ductile iron water conveyance pipe, ancillary water service pipe, curb ramps, and pavement restoration This action constitutes th e Approval Action for the Project for the purposes of the California Environmental Quality Act (CEQA) pursuant to Section 31.04(h) of the San Francisco Administrative Code. The Planning Department has determined that this action is exempt from the CEQA. If the item is approved, the Commission will rely on that determination to make its decision.
Background: The Water Enterprise, Local Conveyance/Distribution System Program provides for the replacement of old water pipes that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City.
Contract No. WD-2843 provides for replacement of cast iron water mains that the City installed between 1923 and 1963, which now require replacement due to their age of between 59 to 99 years.
Description of
Scope of Work:
The contract work location is in San Francisco's Diamond Heights and Noe Valley residential districts.
The contract work consists of installing:
• 13,640 feet of ductile iron water conveyance pipe; and Contract: WD-2843, 16-, 12-, and 8-Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts from Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan to Valley Sts
Commission Meeting Date: January 11, 2022
• ancillary water service pipe and curb ramps including pavement restoration.
Result of
Inaction:
A delay or denial awarding this contract will impede the timely upgrade of the critical aging water infrastructure and could increase the risk of failure, particularly following a seismic event.
Budget & Costs: Funding: Project No. 10032577, WD-2843, 16 -, 12 -, and 8 -Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts from Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan To Valley Sts
Engineer’s Estimate: $11,600,000
Award: $8,802,037
Schedule: Estimated Notice-to-Proceed Date: March 2022
Estimated Completion Date: January 2024
Contract Duration: Six-hundred sixty-three (663) consecutive calendar days (approximately one year and 10 months) (618 consecutive calendar days to Substantial Completion and an additional 45 consecutive calendar days to f inal completion)
Compliance with
Chapter 14B:
Local Business
Enterprise
Utilization and
Non-
Discrimination in
Contracting
Ordinance:
Set: The Con tract Monitoring Division (CMD) established a Local Business Enterprise (LBE) subcontracting requirement of 15% for this contract.
Submitted: The contractor committed to LBE participation of 15.47% in its bid submittal.
Environmental
Review:
On December 29, 2021 , the San Francisco Planning Department determined the Project to be categorically exempt under the CEQA Guidelines Section 15302, Class 2 (Replacement or Reconstruction) (Case Number 2019-015045ENV). The exemption can be found here:
https://sfpuc.sharefile.com/d-s821b246b72e84830ae12a089aced4687
This action constitutes the Approval Action for the Project for the purposes of CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code.
Bid History: Advertised: July 23, 2021
Bids Received: SFPUC received sealed bids from four (4) firms on November 10, 2021, as follows:
Bid Rank
Bid
Amount
Bid
Preference Adjusted Bid
Final
Rank
Contract: WD-2843, 16-, 12-, and 8-Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts from Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan to Valley Sts
Commission Meeting Date: January 11, 2022
1. M Squared
Construction
Inc.
$8,802,037 2% $8,625,996.26 1
2. Cratus Inc. $9,943,380 2% $9,744,512.40 2
3. Fontenoy
Engineering,
Inc.
$10,749,001 2% $10,534,021.37 3
4. Hernandez
Engineering
$12,999,222 2% $12,739,237.56 4
Application of bid preferences in accordance with Chapter 14B of the San Francisco Administrative Code did not change the final ranking of the low bidder.
Recommendation: SFPUC staff recommends that the Commission adopt the attached resolution.
Attachments: 1. CMD Memorandum
PUBLIC UTILITIES COMMISSION
City and County of San Francisco
RESOLUTION NO.
WHEREAS, The San Francisco Public Utilities Commission (SFPUC) Water Enterprise, Local Conveyance/Distribution System Program provides for the replacement of old water pipes that have either been damaged or are at the end of their useful service life to ensure reliable water delivery within the City. Contract No. WD-2843 provides for replacement of cast iron water mains that the City installed between 1923 and 1963, which now require replacement due to their age of between 59 to 99 years; and
WHEREAS, The SFPUC Water Enterprise advertised the San Francisco Public Utilities Commission’s (SFPUC) Water Enterprise advertised Local Conveyance/Distribution System Program funded Contract No. WD-2843, 16- , 12- , and 8- Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts fr om Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan to Valley Sts, on July 23, 2021; and
WHEREAS, The Engineer’s Estimate is $ 11,600,000 for this construction contract work to install 13,640 feet of ductile iron water conveyance pipe, ancillary water service pipe, curb ramps, and pavement restoration; and
WHEREAS, The contract duration is 663 consecutive calendar days; and WHEREAS, On November 10, 2021, the SFPUC received and publicly opened four (4 ) bids; and
WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) staff reviewed the bids for responsibility, responsiveness and application of bid preferences and determined that M Squared Construction Inc. was the responsible bidder that submitted the lowest responsive bid; and
WHEREAS, CMD established a Local Business Enterprise ( LBE) subcontracting participation requirement of 15% for this contract , and the contractor committed to LBE participation of 15.47% in its bid submittal; and
WHEREAS, The firm being awarded a contract by the SFPUC must be in compliance with the Equal Benefits Provisions of Chapter 12B of the City’s Administrative Code either at the time of the award, or within two weeks of the date of the Commission award. If the bidder fails to meet the compliance requirement, Staff will return to the Commission for rescission of this award; and WHEREAS, Funds are available from Project No. 10032577, WD-2843, 16-, 12-, and 8- Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts from Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan To Valley Sts; and
WHEREAS, On December 29, 2021, the San Francisco Planning Department determined the Project to be categorical ly exempt under the California Environmental Quality Act (CEQA) Guidelines Section 15302, Class 2 (Replacement or Reconstruction) (Case Number 2019 - 015045ENV); and
WHEREAS, This action constitutes the Approval Action for the Project for the purposes of CEQA pursuant to Section 31.04(h) of the San Francisco Administrative Code; now, therefore, be it
RESOLVED, That this Commission hereby approves the plans and specifications and awards SFPUC Contract No. WD -2843, 16-, 12- , and 8- Inch Ductile Iron Water Main Replacement on Diamond St from 27th St to Diamond Heights Blvd, 28th and Duncan Sts from Douglass to Noe Sts, Valley St from Diamond to Noe Sts, and Noe St from Duncan To Valley Sts, in the amount of $8,802,037, for a duration of 663 consecutive calendar days, to the responsible bidder that submitted the lowest responsive bid, M Squared Construction Inc.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of January 11, 2022.
Secretary, Public Utilities Commission
London N. Breed, Mayor
Carmen Chu, City Administrator
Romulus Asenloo, Director
1155 Market Street, 4th Floor, San Francisco, CA 94103 Telephone (415) 581-2310 Fax (415) 581-2351
CONTRACT MONITORING DIVISION
CITY ADMINISTRATOR’S OFFICE
MEMORANDUM
Date: December 3, 2021
To: Ryan Freeborn, SFPUC
Derek Wong, SFPUC
From: Kate Svyatets, CMD
Subject: CMD Review -- WD-2843 – “16-, 12- and 8-Inch Ductile Iron Water Main Replacement on Diamond Street from 27th to Diamond Heights Blvd, 28th and Duncan Streets from Douglass to Noe Streets, Valley Street from Diamond to Noe Streets, and Noe Street from Duncan to Valley Streets”
The Contract Monitoring Division (“CMD”) has reviewed the bids submitted for the above referenced project, applied the appropriate bid discounts, and determined responsiveness to the Chapter 14B pre- award requirements. A Local Business Enterprise (LBE) subcontracting requirement of 15% was established for this project:
The LBE subcontracting requirement is below 20%, based on the specialized scopes of work and equipment and the applicable LBE subcontracting availability to replace pipes of various sizes in a linear operation (e.g., 4-, 6- and 8-Inch Ductile Iron Tyton Joint Pipe with Polyethylene Encasement, 12-Inch Ductile Iron Flex-Ring Joint Pipe with Polyethylene Encasement, etc.)
Below is a summary of CMD’s review:
Firm Status Base Bid Bid Discount
Bid (with Bid
Discount
Applied)
M Squared Construction,
Inc.
SBA-LBE-
OBE $8,802,037.00 2% =
$176,040.74 $8,625,996.26
Cratus, Inc. SF-LBE-OBE
(Small) $9,943,380.00 2% =
$198,867.60 $9,744,512.40
Fontenoy Engineering, Inc. SF-LBE-OBE
(Small) $10,749,001.40 2% =
$214,980.03 $10,534,021.37
M Hernandez Construction,
Inc. dba Hernandez
Engineering
SF-LBE-MBE
(Micro) $12,999,222.00 2% =
$259,984.44 $12,739,237.56
M Squared Construction, Inc. (“M Squared”) is the lowest responsive bidder. M Squared met the 15% LBE subcontracting requirement by listing the following LBE subcontractors on Section 00 43 36 (Proposed Subcontractor Form):
Firm Scope of
Work LBE Status Listed
Amount
Amount
Credited
Participation
(based on
credited
amount)
Basset
Engineering
Concrete
Restoration
SF-LBE-OBE
(Micro) $475,000.00 $475,000.00 5.40%
Ronan
Construction, Inc. AC Paving SF-LBE-OBE
(Micro) $996,540.00 $886,540.00 * 10.07%
TOTAL LBE Subcontracting Participation $1,471,540.00 $1,361,540.00 15.47% * On its CMD Form 6, Ronan Construction has indicated that it will further subcontract $110,000 to lower-tier non-LBE subcontractors.
M Squared has not listed any non-LBE subcontractors on Section 00 43 36.
Based on the foregoing, CMD has determined that M Squared has complied with the pre-award Chapter 14B requirements. Should you have any questions, or if I can be of further assistance, please do not hesitate to contact me at (415) 551-4335.