DEPARTMENT
Infrastructure Division
AGENDA NO.
14 MEETING DATE
February 22, 2022
APPROVAL:
COMMISSION
SECRETARY
Donna Hood
AGENDA ITEM
Public Utilities Commission
City and County of San Francisco
Construction Award: Regular Calendar
Contract Manager: Tracy Cael
Award Contract No. WD-2878A, Regional Groundwater Storage & Recovery Phase 2A
Summary of
Proposed
Commission
Action:
Approve the plans and specifications and award Contract No. WD-2878A, Regional Groundwater Storage & Recovery Phase 2A, in the amount of $6,850,000 and with a duration of 608 consecutive calendar days (approximately one year and eight months), to the responsible bidder submitting the lowest responsive bid, Marinship Development Interest LLC., in accordance with San Francisco Administrative Code
6.23(c)(3), to retrofit existing well pump systems at 10 groundwater well facilities.
Background: The Regional Groundwater Storage and Recovery (RGSR) project includes construction of up to 10 groundwater well stations that will be connected to three wholesale customers on the Upper Peninsula and to the San Francisco Public Utilities Commission (SFPUC) transmission system in order to provide additional dry year water supply.
The RGSR project is being constructed in two phases in order to expedite installation of most of the wells in Phase 1, while allowing for later contracts in Phase 2 for work requiring long lead- times for permits and easements . Phase 1 , currently in construction under WD-2668 contract, includes the installation of 13 well stations.
The Phase 2 work has been separated into two contracts. Phase 2A, under this Contract No. WD-2878A, consists of additional improvements at the 10 well sites installed in Phase 1, including installation of cathodic protection, variable frequency drives, flowmeters for water accounting, valve modifications , and well
rehabilitation. Phase 2B, to be advertised at a later date, consists of work at South San Francisco Main Well, including installation of the groundwater pump system, electrical and mechanical work, and pipeline installation.
Description of
Scope of Work:
The contract work for this Phase 2A Contract No. WD -2878A consists of installing cathodic protection, variable frequency drives, flowmeters for water accounting, valve modifications, and well rehabilitation at 10 groundwater well facilities.
Contract: WD-2878A, Regional Groundwater Storage & Recovery Phase 2A Commission Meeting Date: February 22, 2022
Result of
Inaction:
A delay or denial awarding this contract will delay successful operation and proper maintenance of the existing well pump systems.
Funding, Budget,
and Costs:
Funding: Project CUW30103 - Regional Groundwater Storage and Recovery Engineer’s Estimate: $5,000,000
Award: $6,850,000
Schedule: Estimated Notice-to-Proceed Date: May 2022
Estimated Completion Date: December 2023
Contract Duration: 608 consecutive calendar days (one year and eight months) (548 consecutive calendar days to Substantial Completion and an additional 60 consecutive calendar days to Final Completion)
Compliance with
Chapter 14B:
Local Business
Enterprise
Utilization and
Non-
Discrimination in
Contracting
Ordinance:
Set: The Contract Monitoring Division (CMD) established a Local Business Enterprise (LBE) subcontracting requirement of 10% for this contract.
Submitted: The contractor committed to a LBE subcontractor participation of
41.07% with its bid submittal.
Environmental
Review:
On August 7, 2014, the Planning Commission certified the Final Environmental Impact Report (FEIR) for the Regional Groundwater Storage and Recovery Project. (Case Number 2008.1396E). On August 12, 2014, by Resolution No. 14-0127, this Commission approved the Regional Groundwater Storage and Recovery Project and adopted findings (CEQA Findings) and a Mitigation Monitoring and Reporting Program (MMRP) required by the California Environmental Quality Act (CEQA).
On September 2, 2020, the Planning Department issued a Minor Project Modification (MPM) to the FEIR for the addition of seven water quality sampling locations.
The work under Contract No. WD-2878A, Regional Groundwater Storage & Recovery Phase 2A, is within the scope of the project authorized under the FEIR and MPM.
The FEIR, MPM to the FEIR, Resolution No. 14-0127, CEQA Findings and the MMRP can be found here:
https://sfpuc.sharefile.com/d-
s203152f2487b4b37b38a2ce847bba7b4
Bid History: Advertised: September 27, 2021
Bids Received: The SFPUC received sealed bids from two (2) firms on November 18, 2021, as follows:
Contract: WD-2878A, Regional Groundwater Storage & Recovery Phase 2A Commission Meeting Date: February 22, 2022
Application of bid preferences does not apply.
Evaluation of the bid documents determined that Ranger Pipelines, Inc. did not meet the minimum qualifications. Ranger did not meet the license requirements for the coating applicator.
Because the SFPUC received only one responsive bid that exceeded the Engineer’s Estimate, SFPUC performed the required analysis under San Francisco Administrative Code section 6.23(c)(3). T he SFPUC evaluated the Invitation For Bids and the bids received, and determined that the qualifications for bidders were not too onerous and were necessary for the work, and further, that while the nonresponsive bid could be easily cured, this would most likely not result in more than one responsive bid by responsible bidders at bid prices substantially lower than the bid price received, and because the non -responsive bid was more than $2 M illion above the low est responsive bid, the competitor was unlikely to lower its price on a re-bid to effectively compete with the one responsive bid received.
Furthermore, SFPUC staff recognize that award of this contract is time -sensitive to provide urgent improvements to existing groundwater wells to increase their operational reliability during this time of drought.
Bid Rank Base Bid Bid
Preference
Adjusted Bid with
Compensable
Delays
Adjusted
Rank
Marinship
Development
Interest LLC
$6,850,000 0% $6,868,000 1
Ranger
Pipelines,
Inc.
$8,891,080 0% $8,891,140 2
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) Regional Groundwater Storage and Recovery (RGSR) project is necessary to provide additional dry year water supply and includes construction of up to 10 groundwater well stations that will be connected to three wholesale customers on the Upper Peninsula and to SFPUC transmission system; and WHEREAS, On September 27, 2021, SFPUC advertised Contract No. WD-2878A, Regional Groundwater Storage & Recovery Phase 2A; and
WHEREAS, The Engineer’s Estimate is $5,000,000 for this construction contract work, with a duration of 608 calendar days; and
WHEREAS, On November 8, 2021, SFPUC received and publicly opened two bids. Both bids exceeded the Engineer’s Estimate and only one was responsive. Under San Francisco Administrative Code section 6.23(c)(3), SFPUC staff, in consultation with the General Manager, conducted an analysis of the bids received and a review of the contract documents, and determined that the qualifications for bidders were not too onerous and were necessary for the work, and further, that while the nonresponsive bid could be easily cured, this would most likely not result in more than one responsive bid by responsible bidders at bid prices substantially lower than the bid price received if the contract were to be re-advertised; and WHEREAS, SFPUC staff and Contract Monitoring Division (CMD) review of the bids for qualifications, responsibility, responsiveness, and application of bid preferences resulted in the establishment of Marinship Development Interest LLC as the one responsible bidder with the lowest responsive bid; and
WHEREAS, CMD established a Local Business Enterprise ( LBE) subcontractor participation of 10% for this contract, and the contractor committed to a LBE subcontractor participation of 41.07% with 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; failure of the bidder to obtain compliance certification from CMD shall result in staff returning to the Commission to rescind award of the contract; and
WHEREAS, On August 7, 2014, the Planning Commission certified the Final Environmental Impact Report (FEIR) for the Regional Groundwater Storage and Recovery Project (Case Number 2008.1396E); and
WHEREAS, On August 12, 2014, by Resolution No. 14-0127, this Commission approved the Regional Groundwater Storage and Recovery Project and adopted findings (CEQA Findings) and a Mitigation Monitoring and Reporting Program (MMRP) required by the California Environmental Quality Act (CEQA); and
WHEREAS, On September 2, 2020, the Planning Department issued a Minor Project Modification (MPM) to the FEIR for the addition of water quality sampling locations and determined that no supplemental environmental review was needed beyond the MPM; and WHEREAS, The work under Contract No. WD-2878A, Regional Groundwater Storage & Recovery Phase 2A is within the scope of the project authorized under the FEIR and MPM; and WHEREAS, The Planning Department is the custodian of records, located in File No. 2008.1396E, at 49 South Van Ness Avenue, Suite 1400, San Francisco, California; and WHEREAS, The Project files, including the FEIR, MPM to the FEIR, Resolution No. 14- 0127, CEQA Findings and the MMRP have been made available for review by this Commission and the public, and those files are part of the record before this Commission; and WHEREAS, This Commission has reviewed and considered the information contained in the FEIR, the findings contained in SFPUC Resolution Number 14-0127, the MPM to the FEIR and all written and oral information provided by the Planning Department, the public, rel evant public agencies, SFPUC and other experts and the administrative files for the Project; now, therefore, be it
RESOLVED, This Commission has reviewed and considered the FEIR and the MPM and the record as a whole, finds that the FEIR is adequate for its use as the decision–making body for the Project and incorporates the CEQA findings contained in Resolution Number 14-0127 by this reference thereto as though set forth in this Resolution; and be it FURTHER RESOLVED, This Commission further finds that since the FEIR and MPM were finalized, there have been no substantial project changes and no substantial changes in project circumstances that would require major revisions to the FEIR due to the involvement of new significant environmental effects or an increase in the severity of previously identified significant impacts, and there is no new information of substantial importance that would change the conclusions set forth in the FEIR and MPM; and be it
FURTHER RESOLVED, That this Commission hereby approves the plans and specifications and , as permitted under San Francisco Administrative Code Section 6.23(c) (3), awards Contract No. WD-2878A, Regional Groundwater Storage & Recovery Phase 2A, in the amount of $6,850,000, for a duration of 608 consecutive calendar days, to the responsible bidder submitting the lowest responsive bid, Marinship Development Interest LLC.
I hereby certify that the foregoing resolution was adopted by the Public Utilities Commission at its meeting of February 22, 2022.
Secretary, Public Utilities Commission
Lake Merced Golf Club
Benjamin Franklin
Intermediate School
Park Plaza Area
Serra Bowl
Colma BART
Colma Blvd
Hickey Blvd
Linear Park
Funeral Home
Millbrae Corporation Yard
WD-2878A
Regional Groundwater Storage and
Recovery Project Phase 2A
SITE MAP
Contract work at 10 out
of 13 groundwater sites
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
OFFICE OF THE CITY ADMINISTRATOR
MEMORANDUM
Date: January 10, 2022
To: Tracy Cael, Project Manager, SFPUC
Derek Wong, Contract Analyst, SFPUC
From: Linda Rainaldi, Contract Compliance Officer, CMD
Subject: WD-2878A Regional Groundwater Storage and Recovery Phase 2A CMD Review Memo
The Contract Monitoring Division (“CMD”) reviewed the bids submitted for the above referenced project, reviewed the appropriate bid discounts, and determined responsiveness to the Chapter 14B pre-award requirements. An LBE subcontracting requirement of 10% was established for this project.
Below is a summary of CMD’s review.
Bidder LBE
Status Base Bid Compensable
Delay Rate Total Bid LBE Bid
Discount
Adjusted Bid
with LBE Bid
Discount
Marinship
Development
Interest LLC
Non-LBE $6,850,000.00 $300 $6,868,000.00 NA $6,868,000.00 Ranger
Pipelines, Inc. Non-LBE $8,891,080.00 $1 $8,891,140.00 NA $8,891,140.00
The lowest responsive bidder is Marinship Development Interest LLC (“MDI”). MDI met the 10% LBE subcontracting requirement by listing the following LBE firms on Section 00 43 36 (Subcontractor List):
Subcontractor Scope of Work LBE Status Listed Amount Credited Amount
Participation
(based on credited
amount)
Pump Repair
Service Co.
Pull, Rebuild, and
Reinstall Well
Pumps
SF LBE-OBE
(Micro) $2,820,600.00 $2,820,600.00 41.07%
Total $2,820,600.00 $2,820,600.00 41.07%
MDI listed the following non-LBE subcontractors on Section 00 43 36:
Subcontractor Scope of Work Listed Amount
Stewart Well Logging Services Pre and Post Cleaning Videos $18,000.00 Roadrunner Drilling and Pump
Company, Inc. Well Casing Cleaning $1,025,000.00
Blocka Construction, Inc. Electrical $475,000.00
Alisto Engineering Group Cathodic Protection $782,820.00 Redwood Painting Co, Inc. Painting $33,290.00
Total $2,334,110.00
Based on the foregoing, CMD has determined that MDI 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) 754-3227.